The role of social media business and organizational resources for successful digital transformation

ABSTRACT

This study aimed to test the concept derived from resource-based and knowledge-based views to determine the success of digital transformation. The Industrial Revolution 4.0 has changed the way organisations survive and are adaptive in all rapidly changing environments, one of which is the use of social media in business. We investigated how SMEs in creative industries adapt their strategies, resources, and knowledge capabilities to achieve digital transformation through organisational agility. Data was collected from 269 SMEs in Indonesia using a questionnaire and analysed using the SEM (Structural Equation Modelling) statistical software SmartPLS. The results showed that organisational agility succeeded in mediating the influence of knowledge absorption capabilities, social media engagement, and digital resources in strengthening digital transformation. Achieving digital transformation can be successful if SMEs can use social media business and technology as their strategy and knowledge to survive and achieve competitive advantage.

KEYWORDS:

• Knowledge absorptive capability
• social media engagement
• digital resources
• organisational agility
• business transformation

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

The work was supported by the World Class Professor 2021 Grant, Ministry of Education, Culture, Research and Technology, Indonesia [SK No. 2817/E4.1/KK.04.05/2021].

Notes on contributors

Ardian Adhiatma

Ardian Adhiatma is a senior lecturer and researcher at Dept. of Management, Faculty of Economics and Business, Universitas Islam Sultan Agung (UNISSULA), Semarang, Indonesia. He received his Doctoral degree from Airlangga University, Indonesia. His teaching and research interest include Social Media Business Management, Human Resource Management and Knowledge Management.

Abdul Hakim

Abdul Hakim is a senior lecturer and researcher at Dept. of Management, Faculty of Economics and Business, Universitas Islam Sultan Agung (UNISSULA), Semarang, Indonesia. He received his Doctoral degree from Airlangga University, Indonesia. His teaching and research interest include Marketing Business Management and Human Resources Management.

Olivia Fachrunnisa

Olivia Fachrunnisa is a Full Professor and researcher at Dept. of Management, Faculty of Economics and Business, Universitas Islam Sultan Agung (UNISSULA), Semarang, Indonesia. She received her Ph.D from Curtin University, Australia. Her teaching and research interest include Human Resource Management, Organizational Behavior, Knowledge Management and Digital Business.

Farookh K Hussain

Farookh Hussain is a Full Professor and researcher with the School of Software, University of Technology Sydney. His research interests include trust-based computing, cloud of things, blockchains, and machine learning.