Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalization
Objective: The aim of the article is to examine the interplay among dynamic capabilities, digitalization, and competitive advantage, with a specific focus on exploring the mediating influence of digitalization in the relationship between dynamic capabilities and competitive advantage among...
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| Format: | Article |
| Language: | English |
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Cracow University of Economics
2024-09-01
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| Series: | Entrepreneurial Business and Economics Review |
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| Online Access: | https://eber.uek.krakow.pl/eber/article/view/2342 |
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| author | Murry Harmawan Saputra Mohamad Nur Utomo Kasmad Ariansyah Yanuar Farida Wismayanti Rahmat Husein Andri Ansyah Koeswinarno Suradi |
| author_facet | Murry Harmawan Saputra Mohamad Nur Utomo Kasmad Ariansyah Yanuar Farida Wismayanti Rahmat Husein Andri Ansyah Koeswinarno Suradi |
| author_sort | Murry Harmawan Saputra |
| collection | DOAJ |
| description |
Objective: The aim of the article is to examine the interplay among dynamic capabilities, digitalization, and competitive advantage, with a specific focus on exploring the mediating influence of digitalization in the relationship between dynamic capabilities and competitive advantage among small and medium-sized enterprises (SMEs) in the Indonesian context.
Research Design & Methods: We utilized a survey method for the collection of primary data. The respondents were SME founders in the provinces of Central Java and North Kalimantan, Indonesia, with a minimum of one year of business engagement. Moreover, we utilized Partial Least Squares Structural Equation Modelling (PLS-SEM) analysis on 230 collected responses to examine the proposed hypotheses on the relationships among dynamic capabilities, digitalization, and competitive advantage.
Findings: We found that dynamic capabilities, except for coordinating capability, positively influence the implementation of digitalization. This highlights the role of these capabilities in utilizing digital technologies effectively. The study also revealed a positive relationship between digitalization and SME competitive advantage. Furthermore, the study showed the significant role of digitalization in mediating the associations between sensing capability, learning capability, integrating capability, and competitive advantage. These findings underscore the importance of developing dynamic capabilities to facilitate digitalization for enhancing competitive advantage in the digital era.
Implications & Recommendations: The study’s implications for SMEs seeking to enhance competitive advantage through digitalization include the importance of improving sensing capability for market understanding, cultivating a learning culture for employee tech updates, and strengthening integrating capability by seamlessly incorporating digital technology into existing processes and functions.
Contribution & Value Added: While many studies have concentrated on evaluating the direct impact of dynamic capabilities on firm competitive advantage or exploring different mediating factors, this research explored the indirect effects of SME’s dynamic capabilities on competitive advantage, delving into digitalization’s mediating role.
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| format | Article |
| id | doaj-art-892f67d1166641a49d1ed3c0154ec72c |
| institution | DOAJ |
| issn | 2353-8821 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Cracow University of Economics |
| record_format | Article |
| series | Entrepreneurial Business and Economics Review |
| spelling | doaj-art-892f67d1166641a49d1ed3c0154ec72c2025-08-20T03:05:45ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-88212024-09-0112310.15678/EBER.2024.120303Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalizationMurry Harmawan Saputra0https://orcid.org/0000-0002-2924-9892Mohamad Nur Utomo1https://orcid.org/0000-0003-1445-5009Kasmad Ariansyah2https://orcid.org/0000-0002-8128-8733Yanuar Farida Wismayanti3https://orcid.org/0009-0009-7437-2441Rahmat Husein Andri Ansyah4https://orcid.org/0000-0002-0526-0077Koeswinarno5https://orcid.org/0000-0003-4198-2154Suradi6https://orcid.org/0000-0001-6528-2406Departement of Management, Economic Faculty, Universitas Muhammadiyah Purworejo, IndonesiaDepartement of Management, Economic Faculty, Universitas Borneo Tarakan, IndonesiaResearch Center for Public Policy, National Agency for Research and Innovation, IndonesiaResearch Center for Public Policy, National Agency for Research and Innovation, IndonesiaResearch Center for Public Policy, National Agency for Research and Innovation, IndonesiaResearch Center for Public Policy, National Agency for Research and Innovation, IndonesiaResearch Center for Public Policy, National Agency for Research and Innovation, Indonesia Objective: The aim of the article is to examine the interplay among dynamic capabilities, digitalization, and competitive advantage, with a specific focus on exploring the mediating influence of digitalization in the relationship between dynamic capabilities and competitive advantage among small and medium-sized enterprises (SMEs) in the Indonesian context. Research Design & Methods: We utilized a survey method for the collection of primary data. The respondents were SME founders in the provinces of Central Java and North Kalimantan, Indonesia, with a minimum of one year of business engagement. Moreover, we utilized Partial Least Squares Structural Equation Modelling (PLS-SEM) analysis on 230 collected responses to examine the proposed hypotheses on the relationships among dynamic capabilities, digitalization, and competitive advantage. Findings: We found that dynamic capabilities, except for coordinating capability, positively influence the implementation of digitalization. This highlights the role of these capabilities in utilizing digital technologies effectively. The study also revealed a positive relationship between digitalization and SME competitive advantage. Furthermore, the study showed the significant role of digitalization in mediating the associations between sensing capability, learning capability, integrating capability, and competitive advantage. These findings underscore the importance of developing dynamic capabilities to facilitate digitalization for enhancing competitive advantage in the digital era. Implications & Recommendations: The study’s implications for SMEs seeking to enhance competitive advantage through digitalization include the importance of improving sensing capability for market understanding, cultivating a learning culture for employee tech updates, and strengthening integrating capability by seamlessly incorporating digital technology into existing processes and functions. Contribution & Value Added: While many studies have concentrated on evaluating the direct impact of dynamic capabilities on firm competitive advantage or exploring different mediating factors, this research explored the indirect effects of SME’s dynamic capabilities on competitive advantage, delving into digitalization’s mediating role. https://eber.uek.krakow.pl/eber/article/view/2342dynamic capabilitycompetitive advantagedigitalizationSMEIndonesia |
| spellingShingle | Murry Harmawan Saputra Mohamad Nur Utomo Kasmad Ariansyah Yanuar Farida Wismayanti Rahmat Husein Andri Ansyah Koeswinarno Suradi Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalization Entrepreneurial Business and Economics Review dynamic capability competitive advantage digitalization SME Indonesia |
| title | Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalization |
| title_full | Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalization |
| title_fullStr | Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalization |
| title_full_unstemmed | Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalization |
| title_short | Small and medium-sized enterprises dynamic capabilities and competitive advantage: The mediating effect of digitalization |
| title_sort | small and medium sized enterprises dynamic capabilities and competitive advantage the mediating effect of digitalization |
| topic | dynamic capability competitive advantage digitalization SME Indonesia |
| url | https://eber.uek.krakow.pl/eber/article/view/2342 |
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