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Exploring the Role of Social Capital, Digital Transformation, and Entrepreneurial Orientation in the Sustainable Development of Creative Industries
Abstract
This chapter explores the effect of digital transformation and entrepreneurial orientation on the sustainable development of creative industries with the mediating role of social capital. The study's statistical population includes managers of creative industries during 2022, and the sample size is 221 managers of these companies. The data collected through a questionnaire were analyzed with PLS4 software. Results show that businesses adapt to survive in a competitive market by reducing negative impacts on society and the environment. By focusing on social capital, companies can improve relationships between team members and gain access to resources. Many businesses are investing in digital transformation, which allows creative industries to enhance relationships with the community and boost economic performance.
Sustainable development attempts to support the growth of individuals, communities, and cultures to attain a reasonable and equitable quality of life, healthcare, and education worldwide. Entrepreneurship and digitalization are widely acknowledged to be important in achieving sustainable development by creating job opportunities, increasing innovation, and supporting environmentally responsible corporate practices. Thus, the study explores the moderating role of digitalization in the nexus between entrepreneurship and sustainable development in Africa between 2006 and 2019. This is crucial in this era of digital technologies, especially in Africa where entrepreneurship may serve as a bedrock for economic development and growth. The study employs Driscoll and Kraay, Lewbel's two-stage least squares, and system generalized method of moments (SYGMM) techniques. The findings show that entrepreneurship positively influences sustainable development. Digitalization has a positive effect on sustainable development. Also, it acts as a complement to the entrepreneurship-sustainable development nexus, implying that digitalization enhances entrepreneurship in spurring sustainable development in Africa. Also, the findings show that both digitalization and entrepreneurship contribute to economic and social sustainability but lead to environmental degradation in Africa. The study, therefore, offers policy recommendations for policymakers, especially in African countries.
This study analyzes social capital as a mediator/moderator of social value creation in social entrepreneurship (SE); thus, we adopted a mixed methods review that was performed in two stages. In the first stage, we overviewed the reviews in order to summarize key findings from the analysis of social entrepreneurship. At this stage, the aim was to show the gap in the existing research, with an explicit focus on impact generation and measuring that impact within social enterprises. Then, we conducted a literature review focusing on studies that analyse the relationship between social entrepreneurship and social capital. Our assumption is that social capital is an impact generation mechanism that works at different interaction levels. Our analysis identifies three pathways which show how social entrepreneurship can have an impact, and how it can be generated by higher levels of social capital. These three pathways involve productivity, community resilience, and institutional development. The proposed classification of the empirically identified SE impact pathways offers insights that are useful to informing the available approaches concerning social impact creation and methods which approximate tangible SE outcomes. In addition, the mediator/moderator approach to social capital identifies these pathways as being complementary value creation processes.
The objective of this study was to analyze how small and medium enterprises (SMEs) cope with environmental changes due to the COVID-19 pandemic by pursuing the business model transformation with the support of digital technologies. To achieve the objective, this study used a multiple case study design with qualitative analysis to examine the data obtained from interviews, observation, and field visits. Seven manufacturing SMEs from Indonesia were selected using a theoretical sampling technique, with the purpose of achieving some degree of variation to allow us to undertake replication logic. Our analysis demonstrates that SMEs adopt a different degree of digital transformations, which can be summarized into three paths, depending on the firms’ contextual factors. First, SMEs with a high level of digital maturity who respond to the challenges by accelerating the transition toward digitalized firms; second, SMEs experiencing liquidity issues but a low level of digital maturity who decide to digitalize the sales function only; and, third, the SMEs that have very limited digital literacy but are supported by a high level of social capital. This last group of firms solves the challenges by finding partners who possess excellent digital capabilities. The qualitative case study method allows us to conduct in-depth and detailed analysis, but has thin generalizability. To address this limitation, future research can use a survey covering various industries to test the proposed theory that has resulted from this study, so that the generalizability can be assured.
This paper addresses an important knowledge gap regarding the internationalization of family businesses. To understand the specific factors that influence the internationalization of these firms, this paper investigates the role and articulation of entrepreneurial orientation (EO) and family social capital (FSC) on internationalization performance. Our findings reveal that the more entrepreneurial the family business, the higher the likelihood of identifying and exploiting business opportunities in foreign markets. The moderating effect that FSC can have on the dynamics between EO and internationalization indicates that this relational family specific asset facilitates organizational stability and performance enhancement.
The aim of this paper is to contribute to understanding the differences in educational level and job titles that affect the adoption of digital transformation in the context of creative industries. The approach is based primarily on the technology-organizational-environment framework, one-way analysis of variance, and multivariate linear regression that were used to test the empirical model. This article describes the difference between the educational level and the job position groups for the adoption of digital transformation in Vietnam’s creative industries, as well as an essential difference between them for the predictor variables. Our research has underlined the importance of demographic variables in relation to the adoption of digital transformation. The current study is limited to some fields of creative industries in Vietnam, such as design, creative services, new media, audiovisuals, publishing and printed media, and selected demographic parameters. More research should be done on certain fields in the creative industries and other demographic characteristics.
Amid global disruptions caused by the COVID-19 pandemic, entrepreneurship is more important than ever before, believed to be a key driver of economic development and recovery as well as poverty alleviation. However, although research on entrepreneurial benefits is becoming well-established, our understanding of the effects of specific social processes on entrepreneurial orientation is fairly limited. The research gap is even larger in an ethnic entrepreneurship setting. This study, therefore, aims to understand the impact of social capital on entrepreneurial orientation through self-efficacy in Dayak, the indigenous ethnic, non-Malay people of Borneo. Utilizing a survey, we found that social capital is positively related to entrepreneurial orientation, and self-efficacy was found to mediate this relationship. Kinship or regional ties among Dayak group members foster social capital in the form of trust, solidarity, and reciprocal obligations. However, although Dayaks are willing to learn and participate in economic activities, including becoming entrepreneurs, they are unlikely to take initiative due to both financial and non-financial obstacles. For these reasons, we suggest an institutional economic approach, designing a specific educational program to help improve the Dayak’s self-efficacy in escalating their entrepreneurship commitment. Local universities and vocational schools can develop an effective curriculum to tap the potential of Dayak in business and entrepreneurship.
The globalization of markets provides opportunities for firms to collaborate on various activities. These collaborations are the resource of social capital for firms to achieve sustainable competitiveness. This study aims to investigate how social capital (i.e., structural, relational, and cognitive social capital) between firms in a developing economy and developed economy strengthens their innovation capability and enhance their industry 4.0 readiness. Using Smart PLS-SEM to analyse the data collected from 320 managers representing 81 manufacturing firms in Pakistan, we found that social capital is positively associated with industry 4.0 readiness, and innovative capability mediates this relationship. The study contributes to the existing knowledge of understanding industry 4.0 readiness and provides useful insights for firms in developing economy to improves their innovation capability during the industry 4.0 era. This study likewise reveals the significance of three dimensions of social capital, which can facilitate to bring in digital knowledge from developed economies to developed economies to get ready for the fourth industrial revolution.
The United Nations 2030 Agenda has emphasized the potential of digital technology to enhance sustainability performance, assuming that digital transformation can enable firms’ convergence toward the Sustainable Development Goals. Despite this, the literature is unclear regarding whether there is a positive relationship between digitalization and sustainability, as the effects of digital transformation are controversial. The main goal of this study was to assess the hypothesis that digital technology contributes to the achievement of Sustainable Development Goals within the UN 2030 Agenda. To test this hypothesis, a textual analysis was performed to assess Italian firms’ digitalization efforts; the obtained results were then related to the selected firms’ ESG scores using a regression analysis. The analysis focused on Italian FTSE MIB listed firms for the period 2016–2019. The findings show a positive relation between digitalization and Sustainable Development Goals, highlighting the relevance of digital technology in implementing the sustainability agenda.
This research contributes to the developing literature on CSR, second-order social capital, and sustainable innovation ambidexterity by (1) offering a complete theoretical framework grounded on related theories by clarifying the associations between the four components of CSR proposed by Carroll, because this model suggests a company to be a responsible member of the society by following the required laws while generating profits and conducting philanthropic initiatives, SSC, and sustainable innovation ambidexterity, and (2) testing this framework in a new setting and with a new target population. This study focuses on the top-level management of different manufacturing companies located in Pakistan. A total of 34 manufacturing industries were selected using a cluster sampling technique based on their proximity in the selected cluster. Geographical location and industry type were selected as the criteria to group the industries in clusters. The data collected from 220 top and middle-level managers were analyzed using a partial least square method while the moderation analysis was conducted by using variance analysis. According to the findings of this study, economic, ethical, legal, and philanthropical responsibilities of CSR were all found to have a positive influence on second-order social capital. The economic, ethical, and legal responsibility of CSR did not influence sustainable innovation ambidexterity, whereas the philanthropical responsibility of CSR was found to have a positive influence on sustainable innovation ambidexterity. The findings of this research study will allow the managers to identify the right mix of CSR initiatives required to manage SSC and sustainable innovation exploitation and exploration techniques.
The increasingly stellar attraction of the digital technologies and the growing, though not universal, consensus of the need to build a sustainable future, are two powerful trends within society. The aim of this article is to offer an exploratory review of how the leading companies within the digital transformation market have addressed sustainable development. As such, the article’s originality and value lie in offering a review of current corporate thinking within that market. The study adopts an inductive, qualitative approach based on an examination of published company reports, and identifies six major sustainability themes being actively promoted and supported. The article concludes that the current sustainability objectives of the technology companies are driven as much by commercial reality as any altruistic motives, and that support and promotion of the circular economy may offer the best opportunity for digital technologies to meaningfully impact sustainable development.
The evolution of the digital transformation presents new challenges and many new opportunities, and provides unique solutions to individual issues, both for sectors and regions. The challenges posed by the digital world have a significant impact on social and economic processes, as well as our environment. This paper aims to provide an indicator-based understanding of the main characteristics of digitalization promoting sustainable development in the member countries of the Visegrad Cooperation. The main goal of this research is to study the relationship between digitalization transformation and sustainability together. One of the basic indicators of the article is the Digital Economy and Society Index (DESI). We examined interconnections between the dimensions of the DESI index and the indicators of the Sustainable Development Goal (SDG) targets together in the V4, presented the change, evaluated the selected countries based on these aspects, and set up their ranking. Competitiveness performance data shed light on the situation in Hungary within the V4 countries, pointing out the strengths and shortcomings. The results show the extent of digital performance in each country and the relationship between their digital performance and sustainability indicators.
The 2030 Agenda of the United Nations comprises 17 Sustainable Development Goals (SDGs) and 169 sub-targets which serve as a global reference point for the transition to sustainability. The agenda acknowledges that different issues such as poverty, hunger, health, education, gender equality, environmental degradation, among others, are intertwined and can therefore only be addressed together. Implementing the SDGs as an ‘indivisible whole’ represents the actual litmus test for the success of the 2030 Agenda. The main challenge is accomplishing a more integrated approach to sustainable
development that encompasses new governance frameworks for enabling and managing systemic transformations. This thematic issue addresses the question whether and how the SDGs set off processes of societal transformation, for which cooperation between state and non-state actors at all political levels (global, regional, national, sub-national), in different societal spheres (politics, society, and economy), and across various sectors (energy, transportation, food, etc.) are indispensable. In this editorial, we first introduce the 2030 Agenda and the SDGs by providing an overview of the architecture of the agenda and the key challenges of the current implementation phase. In a second step, we present the eleven contributions that make up the thematic issue clustering them around three themes: integration, governance challenges, and implementation.
In this study, ten cities from the Visegrád countries are compared applying cross-sectional data (from the year 2015). After the standardization process of the involved 11 indicators, their adaptive capacity is measured by resilient index that we developed and a rank is created. This index is formed by three components (demographic, social-economic and spatial-environmental resilience components). Significant differences were revealed related to the adaptive capacity of the examined settlements. In spite of the fact that the capitals of the Visegrád countries are the most resilient cities from an economic perspective, their results are around or below the average regarding their demographic and spatial-environmental components. This indicates that the economic success of a city does not necessarily imply greater resilience: being an economically successful city is a necessary but not sufficient condition for being a resilient city.
Digital transformation refers to the unprecedented disruptions in society, industry, and organizations stimulated by advances in digital technologies such as artificial intelligence, big data analytics, cloud computing, and the Internet of Things (IoT). Presently, there is a lack of studies to map digital transformation in the environmental sustainability domain. This paper identifies the disruptions driven by digital transformation in the environmental sustainability domain through a systematic literature review. The results present a framework that outlines the transformations in four key areas: pollution control, waste management, sustainable production, and urban sustainability. The transformations in each key area are divided into further sub-categories. This study proposes an agenda for future research in terms of organizational capabilities, performance, and digital transformation strategy regarding environmental sustainability.
In the wake of digitalization it is increasingly debated whether developing countries can achieve economic prosperity through industrialization in the same manner as developed countries did. At the same time, developing countries have high hopes for digital technologies to drive the transformation of the economy towards prosperity. Literature on structural change views technology as one driver of employment shifts between economic sectors, but underlying mechanisms are often overlooked. Similarly, evidence on digitalization highlights its impacts on employment, but the causes and effects require further investigation. As a consequence, both strands of literature benefit from an integrated perspective on structural change and digitalization, which has largely been lacking. Hence, we pose the following research question: What are potential linkages between structural change and digitalization? Based on a review of the existing literature we identify the drivers of structural change as well as the economic impacts of digitalization on these drivers. We then elaborate on linkages between both strands of literature, showing that digitalization impacts the drivers of structural change in various ways. Evidence suggests that digitalization is likely to affect relative sectoral productivity, but it is questionable whether destinations of subsequent labor movements (e.g. towards traditional services) will equally benefit from technological progress. Moreover, the skill bias of digital technologies may be a risk not only for equitable income gains, but also for inter-firm linkages. Our review further implies that digitalization fosters the servicification of manufacturing and presents opportunities for developing countries to diversify in traded goods and services. However, it is contested if digitalization facilitates better positioning of developing countries in global markets, or if it narrows the scope for their participation and upgrading opportunities in global value chains due to relatively larger benefits for developed countries. We thus highlight various differences between developed and developing countries in the ability to benefit from digitalization. Future studies can empirically test the proposed linkages to reveal technology-, country- and industry-specific interactions between processes of structural change and digitalization.
Given that social dilemmas such as climate change, unemployment, and public health are growing globally, recognition of social drivers related to sustainable development while generating social impact is of particular interest to professionals and academics. This study aims to highlight the antecedents of sustainable social impact. Thus, we evaluate the association between entrepreneurial orientation and social impact through the mediation effects of social factors named social drivers, including service innovation, social innovation, and social value orientation. The data collection is from the service and non-service industries in Taiwan. A total of 270 samples consisting of employees, managers, SME owners, and CEOs is used. We employed structural equation modeling (SEM) to test the proposed hypotheses. Research findings indicate entrepreneurial orientation is a determining factor of sustainable innovation that not only renders entrepreneurially strategic dispositions of an organization but also significantly contributes to generating drastic social impact. In particular, entrepreneurs are found to be more proactive in solving problematic social issues through their entrepreneurial characteristics. Statistical findings support that all direct effects, besides partial and full mediation, are proved, which reveals the transformative potential of selected social drivers. Altogether, research findings provide exciting insights into entrepreneurship knowledge, innovation, and value assumptions in the social context. We further discuss theoretical and practical implications.
Rather than limiting themselves to acting as mere financial intermediaries of corporate philanthropic funds, corporate foundations (CFs) may contribute to the achievement of the Sustainable Development Goals (SDGs) as partnership brokers. Based on the literature on the SDGs, cross-sector partnerships, the influence of the private sector on the SDGs, and institutional philanthropic involvement in the SDGs, this paper shows how the unique characteristics of CFs and their position between the business sector and civil society make them ideal partnership brokers in cross-sector collaborations. Furthermore, this study examines how CFs approach the Agenda 2030 with respect to their activities and strategies. Following an explorative research approach, data were collected through an online survey among CF managers in Switzerland, Liechtenstein, and Germany. The findings suggest that, in order to contribute more effectively to the SDGs, CFs should make more and better use of their capacities in bridging institutional logics, pooling resources, and initiating partnerships between different sectors.
Expanding and maintaining the number of Small and Medium-sized Enterprises (SMEs) is directly related to sustainable economic, social, and individual development. However, SMEs are vulnerable to competition. Thus, this study focusses on the analysis of entrepreneurial orientation (EO) as an antecedent of integrated marketing communications’ (IMC) successful implementation directed at improving SMEs’ performance, with additional focus on the institutional inter-country context. Considering the role of owner-managers in SMEs, analysis of the gender gap is also applied. The data from 315 managers’ surveys (in Spain and Belarus) is analyzed using Structural Equation Modelling (SEM). The results show a positive relationship between EO, IMC, and performance among SMEs in both markets. However, these connections are significantly stronger in the case of male, rather than female managers in a developed market (Spain). There is no gender gap in an emerging market (Belarus). Moreover, and conversely, in a developing market, the EO-IMC-performance relations are more intensive when the manager is female. Further implementations are provided for practitioners and government organizations with a focus on the gender gap and inter-country differences.
Digital transformation is a business transformation that exploits the benefits of new technology. Creative resources are needed in the digital age 4.0; industries with unique products are generally produced from rural creative ideas, but are seen to be extinct eroded by the development of the technological era. The reason for this exploration is to investigate the changing job of human asset the executives in the time of advanced change by embracing social capital, sharing information as a significant segment to deliver business esteem in accomplishing upper hand. Data obtained through a questionnaire distributed to 150 respondents with purposive sampling to rural entrepreneurs in Bali. Hypothesis testing is done using Partial Least Square Analysis with the help of the smartpls application. Data collection is done through the distribution of social capital questionnaires based on norms and trust will be able to give a positive influence on the acquisition of information and resources in the technological era. However, technology is not able to give a role to transformation because of the way to receive its people which in the end will have a negative influence. So, it should be concentrated in more profundity what must be set up in supporting innovation so the improvement of innovation positively affects the change of assets from the thickly possessed system and data sharing.
This article highlights the adoption of social media by organizations and its consequences on the company’s performance. These topics of debate are becoming more and more common in the business environment. In fact, it is the main argument for which this paper relates the particularly important aspects of the adoption of social media (social networks) by organizations. In the following, important aspects that bring value to the organization, both by acquiring and by adopting social media in sales performance, have been structured. This research is built on a theoretical study, including as main terms of discussion: social media adoption and digital transformation. In the last part of the article, we have summarized and concluded these factors. We have identified how they can contribute to a more efficient orientation of sales performance, to increase the organizational management of the relationship and the connection between customers and the organization. Referring to the orientation towards “use of social networks” by organizations, we demonstrate that organizations are required to give high importance to understanding the organization’s customers and, of course, a high degree of relational performance. Another factor encountered in this theoretical research is ―digital transformation”. We debated this topic in order to easily make the transition to the adoption of “social media” by organizations. Following the theoretical research, we can say that today, digital transformation has special importance in the organization and the fact that a strong link has been created among social media, reality management and performance in relational sales.
Previous research has underlined, normally from a firm-level perspective, the importance of entrepreneurial orientation in explaining objective entrepreneurial success. Nevertheless, its impact on the perception of entrepreneurs with respect to what entrepreneurial success means to them remains underexplored. Based on a sample of manager-owners of small companies, and contemplating entrepreneurial orientation as an individual concept, we used a time-lagged design with two data-collection points to explain the effect of innovative orientation (IO), risk-taking orientation (RTO) and proactive orientation (PO) on the subjective success of entrepreneurs. Our results show that only one dimension of entrepreneurial orientation, proactive orientation, is associated with entrepreneurs’ satisfaction with their activity, life, organization and the growth of the company.
The key elements that contribute to the digital transformation of the enterprise in the context of the cross-industrial paradigm are outlined. On the basis of the proposed elements (development factor, rate of development, quality change density, multiplication factor), and by means of mathematical modelling, the effect of capturing the digital transformation of the enterprise in the bifurcation points is calculated. The totality of the presented developments allows us to predict the development and minimization of risks associated with digital transformation in the enterprise with all the ensuing consequences (stability, dynamics, transformation and forecast of its development vectors) and conclude that with the improvement of the quality of digital transformation, the efficiency of functioning of any production increases, i.e. an increase in quality by digital transformation by n times accompanies an increase in production efficiency by at least n times.This allows to minimize risks and predict enterprise activity taking into account the vector of its development-digital transformation. Under conditions of uncertainty, the use of the model will ensure the quality of the digital transformation of the enterprise from any level of development of companies.
This paper aims at exploring the perspective of sustainability when digital transformation is adopted by one organization, although it was not the first goal targeted. Two different cases are analyzed, covering manufacturing and service industries. In those cases different factors will be analyzed, mainly focused on the positive effects of knowledge creation facilitated by direct or indirect application of digitalization. Specific analysis of different cases were carried out to identify different initiatives and the impact on environmental performance. The positive effects of the institutional dimension were also assessed.
In most countries, small and medium-sized enterprises (SMEs) play a key role in driving sustainable economic growth and job creation; hence, the need to investigate factors (e.g., entrepreneurial factors) that influence SMEs’ sustainable growth (SMESG). This study provides an insight into entrepreneurs’ abilities (EAs) that affect SMESG in Côte d’Ivoire (a middle-income economy located in the West African region) and an assessment of the extent to which entrepreneurial orientation (EO) influences the EA–SMESG relationship. By using data from 320 Ivorian SMEs, the results of hypothesis testing confirm an association between SMESG and each EA dimension (creativity, risk control, relationship, and opportunity detection ability), learning ability excepted. As for the moderating effect of EO, the innovativeness in entrepreneurship positively and significantly regulates the EA–SMESG relationship; proactiveness positively regulates the relationship between almost all EA dimensions and SMESG; and risk tendency regulates the relationship EA–SMESG for creativity and risk-control ability. Based on major findings, management implications are formulated in relation to promoting SMEs’ sustainable growth. For example, in light of the impact of EA on SMESG, development actors can increase the efficiency of Ivorian SMEs through actions aiming at strengthening the abilities of entrepreneurs and managers.
Digital transformation and resultant business model innovation have fundamentally altered consumers’ expectations and behaviors, putting immense pressure on traditional firms, and disrupting numerous markets. Drawing on extant literature, we identify three stages of digital transformation: digitization, digitalization, and digital transformation. We identify and delineate growth strategies for digital firms as well as the assets and capabilities required in order to successfully transform digitally. We posit that digital transformation requires specific organizational structures and bears consequences for the metrics used to calibrate performance. Finally, we provide a research agenda to stimulate and guide future research on digital transformation.
Purpose
The purpose of this paper is to explore how incumbents adapt their business models in response to digital innovation whose impact is either incremental or radical and source industry is either their own industry or other industries. The authors propose a conceptual matrix that is built on these two dimensions.
Design/methodology/approach
The authors build examples of four multinational incumbents operating in different sectors and known for their forefront approach to digital innovation to populate the matrix. Cases were chosen because of their polar nature that could provide variation in the two dimensions. The authors draw on a variety of qualitative secondary data sources to build the cases.
Findings
The study reveals how incumbents’ response to digital technologies (DTs) may differ depending on the resources or assets (including knowledge-based ones) that need mobilising. Business model changes and innovations may require full reconfiguration of a firm’s activity system; hence, one business model may be preferred to others depending on how burdensome the reconfiguration process will be.
Research limitations/implications
As the study is exploratory in nature, the anecdotal evidence provided in the paper are only some of the possible strategic responses of firms. Future studies may further into the dimensions the authors identified by empirically testing their validity with primary data.
Practical implications
The research offers managers and executives of incumbent firms a clear indication as to which elements of their business model ought to be adapted given the opportunities as well as the challenges brought about by DTs.
Originality/value
This research has explored incumbents’ response to DTs by primarily focusing on the nature and source industry of the underpinning innovation, besides any consideration of the drivers or processes that may lead to business model change.
Increases in productivity and competitiveness of an economy are based mostly on the actions of companies in terms of providing technical capital to workers and of operations efficiency (management, financial, recruitment, finding markets and suppliers, internal and external communication, etc.) through digitalization. This paper deals with the way in which the economies and companies in Central and Eastern European (CEE) countries manage to adapt to the trend that started, mostly after 2000, in digitalization; also, it analyzes the extent to which an increase in the degree of business upgrading via integrating digital technology into the business model leads to a surge in economic performances (productivity, exports) and, consequently, to a greater attractivity to foreign capital flows.
This paper examines the relationship between digitalization and sustainable
development and presents the composite index used for measuring the digital
competitiveness of nations – the Digital Economy and Society Index (DESI). Today’s
environment is highly dependent on technological capabilities. Tracking
contemporary technological development is becoming crucial at both micro and
macro level. One of the major revolutions in modern business is switching from
traditional to digital business models for achieving higher competitiveness level.
Digitalization is one of the primary impetus of today’s development. To accept and
implement these changes, it is important to highlight the macromarketing role in this
process. It is necessary to have concrete measures for identifying the shortcomings,
good practices, and track the development. For this purpose, European Commission
developed DESI to measure digital performance of European Union countries. This
paper examines the DESI methodology and observes how the digital performance of
EU affects main sustainable development components: economic, social, and
environmental. Thus, the paper explores the correlations of DESI and other
composite indices that measure sustainability components. Besides, the research
examined the relationships between Hofstede’s cultural dimensions and digital performance. The paper highlights the importance of digitalization as another
crucial component of society’s sustainable development.
Managing constellations of employee relationships is a core competency in knowledge-based organizations. It is timely, then, that human resource management (HRM) scholars and practitioners are adopting an increasingly relational view of HR. Whereas this burgeoning stream of research predominantly positions relationships as pathways for the transmission of resources, we shift attention by spotlighting that the interplay between HR practices and informal relationships perforate deeper than resource flows; they also influence how individuals view and define themselves in the context of their dyadic and collective relationships. Moreover, because HR practices routinely involve human capital movement into, within, and out of the organization, these practices have implications for the network architecture of organizations. We integrate the social network perspective (Borgatti & Halgin, 2011) with the theory of relational identity (Sluss & Ashforth, 2007) to present a relational theory of HRM that informs how modifications to internal social structures stimulated by HR practices can influence individual outcomes by transforming individuals' self-concepts as relationships are gained, altered, and lost.
This paper puts forward a framework for understanding the relationship between service industries and social innovation. These are two, previously disconnected research areas. The paper explores ways in which innovation in services is increasingly becoming one of social innovation (in terms of social goals, social means, social roles and multi-agent provision) and how social innovation can be understood from a service innovation perspective. A taxonomy is proposed based on the mix between innovation nature and the locus of co-production. The paper additionally puts forward a theoretical framework for understanding social innovation in services, where the co-creation of innovation is the result of an interaction of competences and preferences of multiple providers, users/citizens, and policy makers. This provides the basis for a discussion of key avenues for future research in theory, measurement, organisation, appropriation, performance measurement, and public policy.
The transformation of a modern socio-technical system is challenging. Notably, the digital transformation of an enterprise's business or operational model is an arduous journey toward success. Recent studies illustrate that 70% of business enterprise digital transformations fall short of their objectives. Without revenue-based performance indicators, the digital transformations of military organisations are, if possible, even more challenging. However, governance methods should assist in the complex transformation of interrelated features like human behaviour, business processes, information, data, and technology. Are they applied, and how feasible the standard Information and Communications Technology (ICT) governance methods are in supporting digital transformation in the defence sector? The paper studies how feasible the contemporary ICT -governance methods are for military organisations while executing digital transformation. The research implements the action research method since the researcher has participated in two journeys of military transformation. First, a review of these two cases shows the military utilisation of the governance methods and models. Second, the standard methods are reflected against the most challenging transformation problems to see if they could provide support. Third, the methods are challenged by the range of variety in complex system transformations to test their flexibility. Based on the research on two digital transformations, military enterprises seem to fall short in applying central ICT governance standards and methods. Therefore, they are not getting the best available support. Secondly, the contemporary governance methods do not address all the pain points in military transformation. Hence, the utilisation degree and transformation benefits are not well correlated. Thirdly, modern governance tools are inflexible in addressing various situations, transformation goals, and organisational maturity. In summary, the research surfaces some new gaps within the contemporary ICT governance toolbox when applied to the complex socio-technical transformation in the defence sector.
Over the past decade, the topic of social class in organizations has enjoyed unexpected growth. However, management researchers lack an in-depth understanding of what we know (and do not know) about the role of social class in organizations. This lack of understanding is exacerbated by the fragmentation of extant research across disciplinary and paradigmatic lines. Accordingly, in this paper, we review over 400 quantitative, qualitative, and conceptual articles and offer an in-depth look at the current state of literature on social class and work. Specifically, we introduce a framework for organizing extant social class research and draw attention to the institutionalization of social class distinctions in organizations. We also identify opportunities for scholars to engage understudied areas and to connect across paradigms. Overall, we hope to fuel future research and further organizational scholars’ understanding of this complex yet impactful phenomenon.
This study empirically explores the role of social capital in creating collaborative innovation and collective intelligence and maintaining organisational sustainability in the unprecedented COVID-19 crisis. Data were collected from a sample of 289 managers, directors and heads of departments of top 50 manufacturing firms in Jordan and analysed using Smart-PLS-SEM. The results indicate that social capital significantly impacts collaborative innovation, collective intelligence and organisation sustainability during the COVID-19 crisis. They also reveal that collective intelligence significantly impacts collaborative innovation and organisation sustainability. This study enriches the literature on social capital, collaborative innovation and collective intelligence. It elucidates the role of such dynamic capabilities in maintaining both organisational sustainability and the chance of recovery from unprecedented crises.
The mismatch of skills among youth graduates contributes towards existing social and economic challenges of poverty and unemployment especially among youths in most developing countries including Malaysia. Consequently, universities are mandated to transform into Entrepreneurial Universities as a third mission, driving state of the art knowledge, skills acquisition and entre-preneurial mindset that supports technological development and innovations to match up with the emerging needs of Malaysia's economy. Therefore, this study assesses the influence of entrepreneurial universities on the development of social capital. Questionnaires were used to retrieve data from a sample of 382 students in two Institutions. Data were analysed using structural equation modelling (PLS-SEM). The direct relationships between the three measures of entrepreneurial university (Input, Process and Output) indicated a positively significant relationship with social capital. However, the moderating effects of Entrepreneurial Intention were supported. Our paper contributes to the literature by examining the role of Entrepreneurial Universities using the three factors of inputs, processes and outputs on social capital development and concurrently examining the moderating effect of Entrepreneurial Intention. It also provides evidence-based support to develop models for emerging entrepreneurial universities in Malaysia which can help the national goal of reducing unemployment due to skill mismatch among graduates.
Digital Transformation (DT) has become an imperative for most organizations in our world of emergent and continuous changes. The term DT has been so broadly used (and misused) that it becomes very confusing. Consequently, the need to provide some conceptual rigor to DT is urgently needed. The purpose of this article is to develop a unified definition of “digital transformation” based on a vastly rigorous/scientific review and analysis of 134 well-received, published definitions of DT that significantly differentiates from other related terms in the literature. The proposed unified definition will help researchers and practitioners to “advance the theory and practice” of the discipline.
The Sustainable Development Goals (SDGs) within the United Nations 2030 Agenda emerged in 2015, becoming an unprecedented global compass for navigating extant sustainability challenges. Nevertheless, it still represents a nascent field enduring uncertainties and complexities. In this regard, the interplay between digitalization and sustainability unfolds bright opportunities for shaping a greener economy and society, paving the way towards the SDGs. However, little evidence exists so far, about a genuine contribution of digital paradigms to sustainability. Besides, their role to tackle the SDGs research gaps remains unexplored. Thus, a holistic characterization of the aforementioned topics has not been fully explored in the emerging literature, deserving further research. The article endeavors a twofold purpose: (1) categorizing the main SDGs research gaps; (2) coupled with a critical exploration of the potential contribution of digital paradigms, particularly Big Data and Artificial Intelligence, towards overcoming the aforesaid caveats and pursuing the 2030 Agenda. Ultimately, the study seeks to bridge literature gaps by providing a first-of-its-kind overview on the SDGs and their nexus with digitalization, while unraveling policy implications and future research directions. The methodology has consisted of a systematic holistic review and in-depth qualitative analysis of the literature on the realms of the SDGs and digitalization. Our findings evidence that the SDGs present several research gaps, namely: flawed understanding of complexities and interlinkages; design shortcomings and imbalances; implementation and governance hurdles; unsuitable indicators and assessment methodologies; truncated adoption and off-target progress; unclear responsibilities and lacking coordination; untapped role of technological innovation and knowledge management. Moreover, our results show growing expectations about the added value brought by digitalization for pursuing the SDGs, through novel data sources, enhanced analytical capacities and collaborative digital ecosystems. However, current research and practice remains in early-stage, pointing to ethical, social and environmental controversies, along with policy caveats, which merit additional research. In light of the findings, the authors suggest a first-approach exploration of research and policy implications. Results suggest that further multidisciplinary research, dialogue and concerted efforts for transformation are required. Reframing the Agenda, while aligning the sustainable development and digitalization policies, seems advisable to ensure a holistic sustainability. The findings aim at guiding and stimulating further research and science-policy dialogue on the promising nexus amid the SDGs and digitalization.
Purpose
This study, an exploratory one, aims to empirically investigate the association of national intellectual capital (NIC) with the national digital transformation readiness of the European Union's (EU’s) member states. Apart from building the conceptual model of NIC, this study explores the role of NIC dimensions in the digital divide between European countries.
Design/methodology/approach
Based on the literature review and the available EU statistical data and indexes, the theoretical framework and conceptual model for NIC were developed. The model explores the relation of NIC and its dimensions (human, social, structural, relational and renewable/development capital) on the readiness of European countries for digital transformation and the digital divide. Significant differences between EU countries in NIC and digital readiness were tested. Multiple linear regression was used to explore the association of each NIC dimension with digital transformation and digital divide within the EU.
Findings
Despite a positive association between all dimensions of NIC and digital transformation readiness, the proposed model of NIC was not confirmed in full. Regression analysis proved social capital and working skills, a dimension of human capital, to be the predictors of digital transformation at a national level, able to detect certain elements of digital divide between EU member states. Structural capital, knowledge and education, as dimensions of human capital, were predictors of the digital divide in terms of the integration of digital media in companies.
Research limitations/implications
This research has a limited propensity for generalisation due to the lack of common measurement models in the field of NIC exploration.
Practical implications
This research offers policy makers an indication of the relationships between NIC and digital transformation, pointing out which dimensions of NIC should be strengthened to allow the EU to meet the challenges of digital economy and to overcome the digital divide between EU member states.
Social implications
The use of digital technologies is key in creating active and informed citizens in the public sphere and productive companies and economic growth in the business sphere.
Originality/value
This study provides an original theoretical framework and conceptual model through which to analyse the relationship between NIC and digital transformation, which has thus far not been explored at the level of the EU. This research makes an original contribution to the empirical exploration of NIC and produces new insights in the fields of digital transformation and intellectual capital.
This paper seeks to explore the relationship between Corporate Social Responsibility (CSR) and Social Capital (SC) in the mining industry. The qualitative analysis was complemented by the insights provided by interviews with key informants as well as the emerging literature on the intersection of SC and CSR. The findings revealed a framework with four quadrants to understand how CSR proposed by a mining company impacts SC, as well as the best practices to move from negative CSR to positive CSR that can generate strong SC.
This paper examines how digital transformation can impact the localization and achievement of the Sustainable Development Goals (SDGs). We collect data on the progress made towards SDGs, existing e-governance and big data initiatives, as well as the state of localization in seven countries from different parts of the world. We find that localization allows governments to effectively tailor sustainable development strategies at the local level, which can be boosted with digital transformation. Localization requires local governments’ effective planning by ensuring that budgetary allocations reflect the priorities of local communities. Our main recommendations are that adequate data are necessary to identify and follow-up with decision makers, which requires a review of institutional competence in dealing with information and data and the use of digital transformation for this purpose. Appropriate funding for development programs and projects and effective application at the local level are also important. This requires policy makers to direct and encourage investments in the ‘The Digital Network Architecture’ (DNA) infrastructure and human capital. A key limitation lies in its sample of countries used with their own cultural and population features. However, our findings provide a good basis to analyse further case studies with more heterogeneous compositions as well as other practices of digital transformation.
Artificial intelligence (AI) is rapidly opening up a new frontier in the fields of business, corporate practices, and governmental policy. The intelligence of machines and robotics with deep learning capabilities have created profound disrupting and enabling impacts on business, governments, and society. They are also influencing the larger trends in global sustainability. As the AI revolution transforms our world, it could herald a utopian future where humanity co-exists harmoniously with machines, or portend a dystopian world filled with conflict, poverty and suffering. More immediately, would AI accelerate our progress on the United Nations (UN) Sustainable Development Goals (SDGs) or bring us further down the path toward greater economic uncertainty, environmental collapse, and social upheaval? What are some of the implications for business leadership and the education of future business leaders? This article aims to address these questions by analyzing the impacts of AI in three case studies. It draws some preliminary inferences for management education and the business of leading corporations in the midst of rapid technological and social change. This study combines the perspectives of business strategy and public policy to analyze the impacts of AI on sustainable development with a specific focus on the advancement of the SDGs. It also draws some lessons on managerial learning and leadership development for global sustainability.
In recent years, a special group of elderly migrants emerged in some developing countries, namely “trailing parents,” who migrated with adult children in their later years. Lots of developing countries such as China have an increasing number of old people using mobile social media for social interaction, information, and entertainment. Based on social capital theory, we developed a research model and investigated the relationship between mobile social media use (MSMU) and social capital, social integration, and life satisfaction of trailing parents. We completed an empirical study by collecting 244 valid samples. The results show that MSMU has a positive impact on trailing parents’ life satisfaction, and bonding social capital, bridging social capital and social integration are all important predictors of trailing parents’ life satisfaction. Furthermore, social capital and social integration play an important chain mediation role in the relationship between MSMU and trailing parents’ life satisfaction.
Purpose
In a world where big data have become crucial to guarantee the success of companies, digital transformation came to help companies transition towards a digital business and accept the changes in the organizational structure as well as the market. Nonetheless, even with the ever-growing importance shed on it, few articles and studies have linked it to the sustainability paradigm. Empirical studies that have linked between the factors of digital transformation and a more sustainable business are still scant. Many efforts are still needed to reduce the knowledge gap between these two concepts. The purpose of this paper is to fill this gap by examining (empirically) the effect of digital transformation on sustainability.
Design/methodology/approach
The study validates five different hypotheses highlighted by the literature using structural equation model (SEM) analysis from partial least square (PLS) approach. It uses a new conceptual framework using a survey data, answered by 41 small- and medium-sized enterprises (SMEs) in Morocco from different industries.
Findings
Using PLS-SEM modeling, the results show that customers, data and innovation, which are drivers that companies should work on during a digital transformation, have a significant impact on companies’ quest to reach sustainability. However, and in contrast to the existing literature, authors find that competition did not play a significant role in enhancing the companies’ commitment to sustainability.
Practical implications
Authors’ findings encourage firms to seize the opportunity of digital transformation to embrace sustainability, because the implementation of these two concepts requires radical changes at the business model level. Authors suggest that the road to achieve sustainability in a digital era should focus on three main axes, enhancing the customer experience and adopting customer centricity, building data analytics capabilities and shifting innovation to the business model level.
Originality/value
To the best of the authors’ knowledge, this study is one of the first research papers that explain how to reach sustainability during a digital transformation. The originality of this paper lies in the fact that it focuses on SMEs as they remain the backbone of the Moroccan economy. This study is also novel for showing with empirical evidences that working on the axes of customers, data and innovation, during a digital transformation journey, will improve sustainable practices within businesses.
The internationalization of R&D activities has become crucial for small and medium-sized enterprises (SMEs) to create sources of competitive advantage. This research aims to analyze the role of social capital and information technology (IT) in enhancing knowledge sharing and innovation capabilities in the particular context of SMEs with geographically dispersed R&D teams. The study uses structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (FsQCA) to investigate data from an online survey of 265 R&D managers in Italian manufacturing SMEs with responsibility for at least one international R&D team. The results reveal the critical role of structural social capital and IT in enhancing knowledge sharing and innovation capabilities. The research contributes to existing knowledge and provides useful insights for marketers by highlighting how social capital, also in combination with IT, strengthens SMEs' competitiveness even when they operate in a mature industry.
The purpose of this paper is to assess stakeholders’ perceptions on the implementation of the smart specialization strategy (RIS3) in the North of Portugal, with a particular focus on technology transfer (TT) activities between 2014 and 2017. A qualitative methodology was followed through semi-structured interviews applied to the actors in the region based on the eight priority domains of RIS3 North of Portugal. Data analysis was performed using Iramuteq software. Our results suggest that the stakeholders’ perception of the fitness of the RIS3 defined for their region does not match with the RIS3 defined by the policy makers. Our results contribute to a better understanding of the real perception of universities and industry on TT in the context of RIS3 and the need for ongoing evaluation and adjustments of RIS3 priority domains by policy makers to address them to the real necessities of the industry/market.
This paper investigates the mediating effect of learning intent in transforming local suppliers’ potential absorptive
capacity into realized absorptive capacity and its impact on exploitative and exploratory innovation. Using survey data
from 155 auto parts manufacturers in Pakistan, we find that local firms’ realized absorptive capacity enables them to
develop both exploitative and exploratory innovations. The findings further suggest that local suppliers’ learning intent
mediates the relationship between potential and realized absorptive capacity which in turn lead to both types of
innovation. In the context of the emerging economy of Pakistan, local suppliers’ absorptive capacity is found to be
critically important in spurring exploitative and exploratory innovation, but learning intent enables realized absorptive capacity and thus in conjunction with realized absorptive capacity supports innovation. Consequently, there would be a
strong case for policy intervention to assist emerging economy firms in building their absorptive capacity and
strengthening their learning intent as a route for promoting innovation and improving their value added position in the
global value chains of multinational enterprises.
Despite the maturing entrepreneurial orientation literature, limited advance has occurred in the theoretical aspect of entrepreneurial orientation–firm performance relationship, and wide‐ranging empirical investigations are few. The authors address these concerns by testing a comprehensive model and by extending the theoretical boundary. Specifically, drawing on dynamic capability theory, core competence perspective, and consumer theories, we argue that technological capability is central for growth and financial performance of an entrepreneurially oriented firm. We introduce a construct called consumer attitude dynamism. We reason that this variable influences the growth of entrepreneurial firms. Our theory and empirical results primarily contribute to the entrepreneurship literature.
Research on the topic of entrepreneurial orientation (EO) continues to proliferate. Nonetheless, the conceptualization and measurement of this construct are matters of ongoing discussion and debate, and construct-specific advice with respect to the generation high value-added EO research is sparse. This editorial is aimed at providing guidance to EO researchers in three areas: (a) EO’s conceptualization(s) and position as they relate to the larger set of corporate entrepreneurship-related constructs, (b) EO’s measurement challenges and possibilities, and (c) suggested guidance and directions for future EO research.
