Determinants of employee digital transformation readiness and job performance: A case of SMEs in Vietnam
-
DOIhttp://dx.doi.org/10.21511/ppm.21(4).2023.18
-
Article InfoVolume 21 2023, Issue #4, pp. 226-239
- 585 Views
-
345 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The subject of stimulating employees toward digital transformation has always been one of the most significant topics, attracting the interests of scientists and decision-makers. This study analyzes the impact of critical factors, including self-efficacy, attitude, leadership, and employee characteristics on employee readiness for digital transformation and job performance. The variables were selected based on the extended theory of planned behavior and personal resource adaption models. To achieve the research objective, partial least squares structural equation modeling was employed. Data were collected from a survey of 302 employees of SMEs in Vietnam. Research findings showed that employees attitude (β = 0.1148; p < 0.05), self-efficacy (β = 0.3737; p < 0.05), and characteristics (β = 0.3328; p < 0.05) affected their readiness for digital transformation. Employees self-efficacy and characteristics also demonstrated direct impacts on job performance. Meanwhile, leadership showed no direct impact (p = 0.6430) but an indirect impact on job performance through readiness (β = 0.1360, p < 0.05). Additionally, among the factors, employee readiness is the most substantial predictor of job performance (β = 0.5152). The findings can benefit Vietnamese SME managers and policymakers, as they can better understand employees and develop effective strategies and measures to promote employee readiness and job performance in a digital transformation context.
Acknowledgment
This article is a scientific product of the ministry-level project “Research on factors affecting digital transformation of small and medium-sized enterprises in Vietnam”, code B2022-BKA-22, funded by the Ministry of Education and Training of Vietnam.
- Keywords
-
JEL Classification (Paper profile tab)O14, O15, M12, M15
-
References59
-
Tables7
-
Figures2
-
- Figure 1. Conceptual model
- Figure 2. SEM results
-
- Table 1. Construct definition and measurement scales
- Table 2. Demographic profile of the respondents (N = 302)
- Table 3. Reliability and validity
- Table 4. Reliability of scales
- Table 5. Discriminant validity, according to Fornell-Larcker
- Table 6. VIF values of variables
- Table 7. Path coefficients
-
- Abdel-Ghany, M. (2014). Readiness for change, change beliefs and resistance to change of extension personnel in the New Valley Governorate about mobile extension. Annals of Agricultural Sciences, 59(2), 297-303.
- Agarwal, R., & Prasad, J. (1998). A conceptual and operational definition of personal innovativeness in the domain of information technology. Information Systems Research, 9(2), 204-215.
- Ahmad, F., Widén, G., & Huvila, I. (2020). The impact of workplace information literacy on organizational innovation: An empirical study. International Journal of Information Management, 51, 102041.
- Alas, R., Vadi, M., Demirer, H., & Bilgin, N. (2012). Readiness to change at Turkish hotel industry. Procedia – Social and Behavioral Sciences, 62, 615-619.
- Alqudah, I. H. A., Carballo-Penela, A., & Ruzo-Sanmartín, E. (2022). High-performance human resource management practices and readiness for change: An integrative model including affective commitment, employees’ performance, and the moderating role of hierarchy culture. European Research on Management and Business Economics, 28(1), 100177.
- Altmann, T. K. (2008). Attitude: A concept analysis. Nursing Forum, 43(3), 144-150.
- Armenakis, A. A., Harris, S. G., & Feild, H. S. (2000). Making change permanent: A model for institutionalizing change interventions. In Research in organizational change and development, 12 (pp. 97-128). Bingley: Emerald Group Publishing Limited.
- Armenakis, A. A., Harris, S. G., & Mossholder, K. W. (1993). Creating readiness for organizational change. Human Relations, 46(6), 681-703.
- Baptista, J., Stein, M.-K., Klein, S., Watson-Manheim, M. B., & Lee, J. (2020). Digital work and organisational transformation: Emergent digital/human work configurations in modern organisations. The Journal of Strategic Information Systems, 29(2), 101618.
- Berghaus, S., & Back, A. (2016). Stages in digital business transformation: Results of an empirical maturity study. Proceedings of the 10th Mediterranean Conference on Information Systems. Paphos.
- Bernerth, J. (2004). Expanding our understanding of the change message. Human Resource Development Review, 3(1), 36-52.
- Börner, K., Scrivner, O., Gallant, M., Ma, S., Liu, X., Chewning, K., Wu, L., & Evans, J. A. (2018). Skill discrepancies between research, education, and jobs reveal the critical need to supply soft skills for the data economy. Proceedings of the National Academy of Sciences, 115(50), 12630-12637.
- Chernyshenko, O. S., & Stark, S. (2005). Organizational psychology. In K. Kempf-Leonard (Ed.), Encyclopedia of social measurement (pp. 957-963). San Diego, CA: Academic Press.
- Davletova, A. H., Tolganbaiuly, T., Tazhigulova, A. I., Smagulova, L. A., Kasymova, A. H., & Baigozhanova, D. S. (2019). Project-oriented training experience in micro-robot programming in college and its features. Opción, 35(22s), 292-307.
- Durst, S., Davila, A., Foli, S., Kraus, S., & Cheng, C.-F. (2023). Antecedents of technological readiness in times of crises: A comparison between before and during COVID-19. Technology in Society, 72, 102195.
- Dwijendra, N. K. A., Akhmadeev, R., Tumanov, D., Kosov, M., Shoar, S., & Banaitis, A. (2021). Modeling social impacts of high-rise residential buildings during the post-occupancy phase using DEMATEL method: A case study. Buildings, 11(11), 504.
- Foerster-Metz, U. S., Marquardt, K., Golowko, N., Kompalla, A., & Hell, C. (2018). Digital transformation and its implications on organizational behavior. Journal of EU Research in Business, 2018, 340873.
- Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
- Frick, N. R., Mirbabaie, M., Stieglitz, S., & Salomon, J. (2021). Maneuvering through the stormy seas of digital transformation: The impact of empowering leadership on the AI readiness of enterprises. Journal of Decision Systems, 30(2-3), 235-258.
- Fugate, M., Kinicki, A. J., & Prussia, G. E. (2008). Employee coping with organizational change: An examination of alternative theoretical perspectives and models. Personnel Psychology, 61(1), 1-36.
- Gfrerer, A., Hutter, K., Füller, J., & Ströhle, T. (2021). Ready or not: Managers’ and employees’ different perceptions of digital readiness. California Management Review, 63(2), 23-48.
- Grundke, R., Marcolin, L., Nguyen, T. L. B., & Squicciarini, M. (2018). Which skills for the digital era? Returns to skills analysis. Paris: OECD Publishing.
- Hair Jr., J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks, CA: Sage Publications.
- Heim, I., & Sardar-Drenda, N. (2021). Assessment of employees’ attitudes toward ongoing organizational transformations. Journal of Organizational Change Management, 34(2), 327-349.
- Henseler, J., & Chin, W. W. (2010). A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural Equation Modeling: A Multidisciplinary Journal, 17(1), 82-109.
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135.
- Höyng, M., & Lau, A. (2023). Being ready for digital transformation: How to enhance employees’ intentional digital readiness. Computers in Human Behavior Reports, 11, 100314.
- Kohli, R., & Johnson, S. (2011). Digital transformation in latecomer industries: CIO and CEO leadership lessons from Encana Oil & Gas (USA) Inc. MIS Quarterly Executive, 10(4), 141-156.
- Kurniady, D. A., Philippov, D. I., Komariah, A., Sururi, Suryana, A., Grebennikova, V. M., Nikitina, N. I., Kosov, M. E., Lazareva, N. V., & Dudnik, O. V. (2022). Development of the adolescents’ communicative culture in the context of digitalization of additional education. Emerging Science Journal, 6(Special Issue), 264-279.
- López-Cabarcos, M. A., Vázquez-Rodríguez, P., & Quiñoá-Piñeiro, L. M. (2022). An approach to employees’ job performance through work environmental variables and leadership behaviours. Journal of Business Research, 140, 361-369.
- Malodia, S., Mishra, M., Fait, M., Papa, A., & Dezi, L. (2023). To digit or to head? Designing digital transformation journey of SMEs among digital self-efficacy and professional leadership. Journal of Business Research, 157, 113547.
- Matsunaga, M. (2021). Testing the theory of communication and uncertainty management in the context of digital transformation with transformational leadership as a moderator. International Journal of Business Communication.
- Muehlburger, M., Krumay, B., Koch, S., & Currle, S. (2022). Individual digital transformation readiness: Conceptualisation and scale development. International Journal of Innovation Management, 26(03), 2240013.
- Mueller, B., & Renken, U. (2017). Helping employees to be digital transformers – The Olympus.connect case. Proceedings of the 38th International Conference on Information Systems. Seoul.
- Mukataeva, Z., Dinmukhamedova, A., Kabieva, S., Baidalinova, B., Khamzina, S., Zekenova, L., & Aizman, R. (2023). Comparative characteristics of developing morphofunctional features of schoolchildren from different climatic and geographical regions. Journal of Pediatric Endocrinology and Metabolism, 36(2), 158-166.
- Nadkarni, S., & Prügl, R. (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71, 233-341.
- Narbariya, S., Nayeem, M. A., & Gupta, R. (2022). Does HPWS amplify employees’ change readiness for digital transformation? A study through the ‘work-from-anywhere’ prism. Personnel Review, 51(8), 1948-1966.
- Nguyen, K., & Broekhuizen, T. (2022). Employee and team digital readiness: How to get employees and teams ready for digital transformation? In Digital transformation: A guide for managers (pp. 59-63). Groningen: Groningen Digital Business Centre (GDBC).
- Nurbekova, Z. K., Mukhamediyeva, K. M., Davletova, A. H., & Kasymova, A. H. (2018). Methodological system of educational robotics training: Systematic literature review. Espacios, 39(15), 28.
- Oh, K., Kho, H., Choi, Y., & Lee, S. (2022). Determinants for successful digital transformation. Sustainability, 14(3), 1215.
- Olejnik, A., Kapitanov, A., Alexandrov, I., & Tatarkanov, A. (2020). Designing a tool for cold knurling of fins. Journal of Applied Engineering Science, 18(3), 305-312.
- Oreg, S., & Berson, Y. (2019). Leaders’ impact on organizational change: Bridging theoretical and methodological chasms. Academy of Management Annals, 13(1), 272-307.
- Ormrod, J. E. (2006). Educational psychology: Developing learners. Upper Saddle River, NJ: Pearson/Merrill Prentice Hall.
- Osmundsen, K., Iden, J., & Bygstad, B. (2018). Digital transformation: Drivers, success factors, and implications. Proceedings of the 12th Mediterranean Conference on Information Systems. Korfu.
- Park, I., Kim, D., Moon, J., Kim, S., Kang, Y., & Bae, S. (2022). Searching for new technology acceptance model under social context: Analyzing the determinants of acceptance of intelligent information technology in digital transformation and implications for the requisites of digital sustainability. Sustainability, 14(1), 579.
- Rodić, M., & Marić, S. (2020). Leadership style and employee readiness: The main factors of leadership efficiency. Proceedings of the 25th International Scientific Conference Strategic Management and Decision Support Systems in Strategic Management (pp. 254-263). Subotica.
- Rogers, E. M. (2003). Diffusion of innovations. New York, NY: Free Press.
- Sassin, W. (2020). War of ideology vs a sober view: Sustainable vs resilient? The Beacon: Journal for Studying Ideologies and Mental Dimensions, 3, 020440211.
- Silva, R. P., Saraiva, C., & Mamede, H. S. (2022). Assessment of organizational readiness for digital transformation in SMEs. Procedia Computer Science, 204, 362-369.
- Soekamto, H., Nikolaeva, I., Abbood, A. A. A., Grachev, D., Kosov, M., Yumashev, A., Kostyrin, E., Lazareva, N., Kvitkovskaja, A., & Nikitina, N. (2022). Professional development of rural teachers based on digital literacy. Emerging Science Journal, 6(6), 1525-1540.
- Tatarkanov, A. A., Alexandrov, I. A., & Olejnik, A. V. (2020). Evaluation of the contact surface parameters at knurling finned heat-exchanging surface by knurls at ring blanks. Periodico Tche Quimica, 17(36), 372-389.
- Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in Psychology, 12, 620766.
- Zein, A., Mahmudiono, T., Abbas Alhussainy, A., Gustina Zainal, A., Akhmadeev, R., Kosov, M., Holh Sabit, S., Vladimirovna Meshkova, G., & Suksatan, W. (2022). Investigating the effect of Islamic values on citizenship behaviours of Muslim citizens. HTS Teologiese Studies / Theological Studies, 78(4).
- USAID. (2023). Annual report on enterprise digital transformation 2022: The readiness of Vietnamese enterprises for digital transformation.
- van de Ven, A. H., & Poole, M. S. (1995). Explaining development and change in organizations. The Academy of Management Review, 20(3), 510-540.
- Vasiljeva, M. V., Semin, A. N., Ponkratov, V. V., Kuznetsov, N. V., Kostyrin, E. V., Semenova, N. N., Ivleva, M. I., Zekiy, A. O., Ruban-Lazareva, N. V., Elyakov, A. L., & Muda, I. (2023). Impact of corporate social responsibility on the effectiveness of companies’ business activities. Emerging Science Journal, 7(3), 768-790.
- Weber, E., Büttgen, M., & Bartsch, S. (2022). How to take employees on the digital transformation journey: An experimental study on complementary leadership behaviors in managing organizational change. Journal of Business Research, 143, 225-238.
- Weiner, B. J. (2009). A theory of organizational readiness for change. Implementation Science, 4, 67.
- Zainalabidin, N., & Ma’rof, A. M. (2021). Predicting the roles of attitudes and self-efficacy in readiness towards implementation of inclusive education among primary school teachers. Asian Social Science, 17(11), 91-102.