Digitalization Impact on Sustainable Firm Performance of Small, Medium, and Large Businesses

Indra Revata Hermanto (), Lydia Ari Widyarini () and Dio Caisar Darma ()
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Indra Revata Hermanto: Department of Management, Faculty of Business, Universitas Katolik Widya Mandala, Surabaya, Indonesia
Lydia Ari Widyarini: Department of Management, Faculty of Business, Universitas Katolik Widya Mandala, Surabaya, Indonesia
Dio Caisar Darma: Department of Economics, Faculty of Economics and Business, Universitas Mulawarman, Samarinda, Indonesia

Virtual Economics, 2024, vol. 7, issue 1, 7-24

Abstract: Currently, the world is presented with sophistication in the field of technology, including company management. A superior company is an organization that can optimize all aspects. Speaking of existence, one of the essential pillars that support company sustainability is technology adoption. Referring to this premise, this study is structured to elaborate on the elements that determine firm performance (FP). These elements are designed into three factors: (1) digital technology usage/DTU, (2) digital transformation strategy/DTS, and (3) organizational agility/OA. This study concentrated on 159 samples compiled from small, medium, and large-scale businesses. Nonprobability sampling and purposive sampling data were extracted via PLS-SEM. Quantitative findings revealed that DTU has positive implications for DTS, OA, and FP. Empirical studies prove that DTS and OA also have a positive impact on FP. The current empirical research concludes that the increase in digital technology usage further develops digital transformation strategy, organizational agility, and firm performance. Improvements in digital transformation strategy or organizational agility can improve firm performance. Policy implications open up space for managerial actors to prioritize more complex ideas, solutions, and alternatives in strengthening mastery of the technology.

Keywords: digital technology usage; digital transformation strategy; organizational agility; firm performance; PLS-SEM. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:aid:journl:v:7:y:2024:i:1:p:7-24

DOI: 10.34021/ve.2024.07.01(1)

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