Customer Participation in Digital Transformation, Value Co-Creation and Firm Performance: An Empirical Study in China Information Communication & Technology Industry

The role of customer participation is an important area in service marketing research. Increasingly more enterprises encourage customers to participate in the service production and delivery processes, stimulate customers to share innovative ideas, and promote a greater role for customers through participation. Although some research has acknowledged the importance of customer participation in creating knowledge and value for enterprises, it has ignored the uncertainty and the complexity that customer participation may bring. Most scholars study customer participation only in a broad sense without examining how to effectively manage customer participation. To address this existing research deficiency, this study uses service-oriented logic, digital transformation theory, value co-creation theory, and corporate performance theory to examine how enterprises can promote customer participation in the process of digital transformation, co-create corporate value with customers, improve and influence the company's digital transformation maturity, and thus promote the company's performance growth (including environmental, economic, and relationship performance). Specifically, this study makes the following major contributions: 1. Based on the behaviour of customers participating in digital transformation, customer participation is divided into four dimensions (information and knowledge exchange, business collaboration, co-leading, and cost-effectiveness) to understand the process of value co-creation, and to some extent, resolve the inconsistent views of customer participation in existing research. Most extant studies explore customer participation as a whole; such integrated research results in the loss of customer participation’s rich connotation and leads to differing opinions about the impact of customer participation. 2. Based on the theory of digital transformation and the theory of digital maturity model, this study primarily examines how to effectively guide and manage customers from the perspective of an operational management model and strategy. The existing research on value co-creation largely focuses on how external environmental factors influence value co-creation among enterprises. These factors are difficult for enterprises to control and control. 3. This study focuses on the co-creation results of traditional enterprise customers and Internet enterprise customers in the process of digital transformation, analyses and compares the different concerns of traditional enterprise customers and Internet enterprise customers on the value co-creation process, and provides effective and positive aid for future strategic planning regarding these two types of customers. The information communication technology industry in China is taken as this study’s research object; five representative enterprises are selected. First, 10 traditional enterprise customers, Internet enterprise customers, and industry experts are interviewed in-depth, and the questionnaire is collected. Second, 506 matching questionnaires for traditional enterprise customers and Internet enterprise customers were collected. Using structural equation modelling, this study examines the relationship between digital transformation and corporate value co-creation, as well as the intermediate role of digital maturity on digital transformation and corporate value co-creation. The empirical results support most of the assumptions, as follows: 1. Customer participation in digital transformation has a significantly positive impact on value co-creation (economic, innovation, and relationship value). 2. Value co-creation (economic, innovation, and relationship value) has a significantly positive impact on firm performance. 3. Digital transformation maturity has a significant moderating effect on the influence of value co-creation on firm performance. 4. Value co-creation has a mediating effect on the relationship between customer participation in digital transformation and firm performance

Barriers to the implementation of enterprise strategic transformation based on path dependence theory: the case of Jiangsu High Hope Group

With the deepening of economic globalization and the improvement of the trade structure mode, China has gradually become a global trade power, enjoying increasing space for the development of its foreign trade enterprises. However, under the comprehensive influences by external factors, China's foreign trade enterprises are faced with huge pressure to survive. Foreign trade enterprises in the new situation must continue to carry out strategic transformation in order to survive and develop. However, in the dynamic environment, the traditional enterprise strategic transformation is faced with serious path dependence, which leads to obvious inertia, which seriously hinders enterprise strategic transformation implementation and even leads to transformation failure. Existing studies only focus on enterprise strategic transformation, whereas this thesis discusses the inertial factors that hinder enterprise strategic transformation implementation from the perspective of path dependence. In other words, this thesis incorporates the theory of path dependence into the theory of strategic transformation, and probes into enterprise strategic transformation from the perspective of path dependence. Proceeding from theory and demonstration and with Jiangsu High Hope Group as the research object, this thesis studies the path dependence factors that hinder Jiangsu High Hope Group's strategic transformation implementation. Relevant suggestions on addressing path dependence barriers to the case company's strategic transformation are put forward from five aspects, namely, enterprise structure, enterprise employees, enterprise core competencies, enterprise culture and external environment, in view of the fact that the case company’s path dependence hinders its strategic transformation implementation.Com o aprofundamento da globalização económica e a melhoria do modo de estrutura comercial, gradualmente, a China tornou-se em uma potência comercial no mundo, desfrutando de um espaço cada vez maior para o desenvolvimento de empresas de comércio exterior (ECE). No entanto, sob as influências abrangentes de fatores externos, as ECE da China enfrentam uma pressão enorme para sobreviver. Na situação nova, as ECE devem continuar a realizar a transformação estratégica (TE) para sobreviver e se desenvolver. Entretanto, no ambiente dinâmico, a TE da empresa tradicional é confrontada com uma séria dependência de trajetória (DT), o que leva à inércia óbvia, o que prejudica seriamente a implementação da TE da empresa, até leva ao fracasso da transformação. Os estudos existentes concentram-se apenas na TE da empresa, enquanto esta tese discute os fatores de inércia que impedem a implementação da TE na empresa a partir da perspetiva da DT, ou seja, esta tese incorpora a teoria da DT na teoria da TE e investiga a TE da empresa a partir da perspetiva da DT. Partindo da teoria e da investigação empírica e tendo como objeto de pesquisa o Grupo Jiangsu High Hope, esta tese estuda os fatores de DT que impedem a implementação da TE do Grupo. As conclusões mais relevantes sobre como lidar com barreiras de DT para a TE da empresa em causa são apresentadas em cinco vertentes, nomeadamente, a estrutura empresarial, os colaboradores de topo de empresa, competências essenciais da empresa, cultura empresarial e o ambiente externo. Este caso lustra bem em como a DT da empresa constitui dificuldade de implementação da TE

Socio-Economic Management Theory Related to BPM: A Case Study of Dysfunctions in Digital Transformation Strategy

This research claims that dynamic strategies demanded by today’s digital environment exacerbate inconsistency between an organization’s digital transformation efforts and its enterprise architecture (EA) planning process. This phenomenon leads to redundant investments, delayed implementation, and frequent failures in digital transformation projects. In order to investigate this inconsistency, we apply the socioeconomic approach to management (SEAM) theory. Through critical analysis of four case studies in a large manufacturing organization, we clarify the relationship between digital transformation and EA and reveal the dysfunction in strategic implementation from a SEAM and business process management (BPM) perspective. In practice, this research integrates digital transformation and EA to provide a context-specific approach for planning and designing enterprise digital transformation strategies

Evolution of the Lean Enterprise System: A Critical Synthesis and Agenda for the Future

Many aerospace enterprises and other organizations have adopted a variety of management approaches to achieve continuous process improvement, enterprise change and transformation, such as the lean enterprise system, total quality management (TQM), theory of constraints (TOC), agile manufacturing, and business process reengineering (BPR). Among them, the lean enterprise system, with its origins in the Toyota Production System (TPS), comes closest to providing a holistic view of enterprises as complex socio-technical systems embodying a mutually supportive set of precepts and practices driving enterprise operations at all levels (i.e., strategic, tactical, operational) and throughout the enterprise value stream encompassing both upstream supplier networks and downstream customerfocused activities. Lean enterprise principles and practices have evolved over many decades through a process of experimentation, learning and adaptation. A distinction is made between the basic lean enterprise system (BLES), capturing salient developments over the period between the late 1940s and mid-1990s, and the contemporary lean enterprise system (CLES), capturing major conceptual and implementation-related extensions of the basic model since the mid-1990s. The lean enterprise system, as a viable framework for explaining the structure and dynamics of modern networked enterprises, for managing them, and for improving their performance through either continuous process improvement or planned systemic change and transformation, remains a work-in-progress

AN INSTITUTIONAL FRAMEWORK FOR ANALYZING ORGANIZATIONAL RESPONSES TO THE ESTABLISHMENT OF ARCHITECTUAL TRANSFORMATION

The need for constant transformation of enterprises is omnipresent. A discipline that has been proposed to support the coordination of enterprise transformation is Enterprise Architecture Management (EAM) which has grown to a mature discipline in academia and practice. However, it can be observed in practice that it still is a challenge to introduce such an architectural coordination approach for supporting enterprise transformation. This may be due to the reason that the institutional context of EAM is only little understood, that is, the interplay between the pressures EAM exerts on the organisation and the response strategies of this organisation. The paper reviews existing work on institutional theory and confirms by means of a case study that the institutional factors of cause, constituents, content, control, and context are not only relevant for EAM but may be consistently linked to response strategies of acquiesce, compromise, avoid, defy, and manipulate. Moreover the case study implies to add additional institutional factors for EAM, namely trust and participation

ARCHITECTURE FOR DIGITAL TRANSFORMATION TOWARD IS LEADERSHIP EDUCATION: CHALLENGES AND EFFECTIVENESS

This panel is related to the education for the practice of IS Leadership roles in Digital Transformation within a given framework of Digital Strategy and Enterprise Architecture. As members of education and collaborative research teams that have been studying and teaching the correct direction of IS leadership roles in Digital Transformation in global enterprises while applying Digital Enterprise Architecture (DEA) Framework – the “Adaptive Integrated Digital Architecture Framework (AIDAF)” with DEA Cube Framework, because the above roles have difficulties and a number of risks especially during Digital Transformation. Thus, the panelists will discuss and debate the theory, practice, and extent of educator’s precise guidance and considerations when performing the aforementioned leadership roles and studying their accurate directions during Digital Transformation. This panel of senior IS educators and researchers with industry experience will discuss the challenges and effectiveness of “Architecture for Digital Transformation Toward IS Leadership Education” for the new era of Digital IT

Leveraging Enterprise 2.0 for Knowledge Sharing

Enterprise 2.0 takes on the full benefits of Web 2.0 services and has great potential in delivering business benefits. Many organizations have invested in this platform yet many are still hesitant to the adoption of it. This research paper explores the use of Enterprise 2.0 and how it can be incorporated into the changing business environment. The paper delineates the principles of KM and draw inferences where the appropriate use of Enterprise 2.0 will improve knowledge sharing. The underlying principles of KM strategy and the desired transformation discussed, illustrates challenges and gaps in knowledge sharing. The subsequent discussion explores the identified gaps and proposed the appropriate use of Enterprise 2.0, based on social capital theory. The study will contribute to a deeper understanding of the coherence of Enterprise 2.0 and knowledge sharing and identify the potential areas of improvements through appropriate use of Enterprise 2.0

Innovative Strategic Leader Transforming From a Low-Cost Strategy to Product Differentiation Strategy

After the 2008 economic slowdown, and with increasing assault from enterprises from emerging economies, many innovative strategic leaders of multinational enterprises are forced to radically transform their enterprises. They often choose to change from low-cost strategy to innovation-driven product differentiation strategy. In this study, we use a multi-level Grounded Theory Methodology (GTM) and agency theory to empirically illustrate such a strategic transformation at a large composite fabric and accessories enterprise. Lessons are drawn from the impact of strategic transformation at multiple levels: strategic leader level, tactical-team manager level, operational follower level, and stakeholder level. Implications for practitioners and researchers are provided by way of mindful leader orientation and value-based innovation

The transition towards benefit corporations: What are theroles for stakeholders?

A benefit corporation (BC) is the legal status of an enterprise that embraces a dual-purpose business model (BM) of maximising shareholder value while satisfying stakeholders' interests. The literature so far has focussed on the motivations beyond the birth or transformation of BC, the factors that can favour the emergence of BCs, and the results companies achieve after the transformation, as well as studies on the new BCs' legislation. Other studies have examined how the duality of purpose (profit vs. social benefits) can be composed, and the risks of a mission drift favouring profit maximisation in BCs. By drawing on stakeholder theory, this study aims to highlight the role of stakeholders in the process of transformation from a traditional for-profit BM to a BC model. We adopt a qualitative approach through a longitudinal case study to observe the transition of a small-medium enterprise into a BC. The results show how management and engagement practices coexist in the relationships with stakeholders and how an instrumental approach prevails

Determinants of Strategic Factors for Digital Transformation in Micro and Small Enterprises in Makassar City

The Indonesian government aims to promote information and communication technology (ICT) among micro and small enterprises to enhance their competitiveness in the global market. A survey was conducted among 180 micro and small enterprise owners in Makassar City using the Unified Theory of Acceptance and Use of Technology (UTAUT) model. The results showed that Performance Expectancy (PE) and Effort Expectancy (EE) insignificantly affect the Behavioral Intentions (BI) of the enterprise owners. It also indicated that Social Influence (SI) and Facilitating Conditions (FC) positively influence the adoption of ICT in micro and small enterprises. This study is novel and significant as it addresses a gap in the literature on digital transformation strategies, particularly in Makassar City, where such investigations are rare. Consequently, this study presents an original contribution to the field.JEL Classification: M2, O3, R2How to Cite:Tajuddin, I., Mahmud, A., & Syahnur, M. H. (2023). Determinants of Strategic Factors for Digital Transformation in Micro and Small Enterprise in Makasar City. Signifikan: Jurnal Ilmu Ekonomi, 12(1), 131-144. https://doi.org/10.15408/sjie.v12i1.31070