Proceedings of the 1st International Conference on Economic and Education, ICON 2021, 14 - 15 December 2021, Padang-West Sumatra, Indonesia

Research Article

Impact of Digital Capability on Competitive Advantage and Performance of Tourism SMEs in Indonesia: The Role of Strategic Agility and Absorptive Capacity

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  • @INPROCEEDINGS{10.4108/eai.14-12-2021.2318370,
        author={Aditiawarman Aditiawarman and Sari Wahyuni},
        title={Impact of Digital Capability on Competitive Advantage and Performance of Tourism SMEs in Indonesia: The Role of Strategic Agility and Absorptive Capacity},
        proceedings={Proceedings of the 1st International Conference on Economic and Education, ICON 2021, 14 - 15 December 2021, Padang-West Sumatra, Indonesia},
        publisher={EAI},
        proceedings_a={ICON},
        year={2022},
        month={7},
        keywords={digital ability; strategic agility; absorbing capacity; competitive advantage; organizational performance},
        doi={10.4108/eai.14-12-2021.2318370}
    }
    
  • Aditiawarman Aditiawarman
    Sari Wahyuni
    Year: 2022
    Impact of Digital Capability on Competitive Advantage and Performance of Tourism SMEs in Indonesia: The Role of Strategic Agility and Absorptive Capacity
    ICON
    EAI
    DOI: 10.4108/eai.14-12-2021.2318370
Aditiawarman Aditiawarman1,*, Sari Wahyuni1
  • 1: Department of Management, Faculty of Economics and Business, University of Indonesia, UI Depok Campus 16424, West Java, Indonesia
*Contact email: aditiawarmanr@gmail.com

Abstract

The main objective of this research is to examine the role of competitive advantage on the performance of Tourism SME in Indonesia, where in forming a strong competitive advantage digital capabilities, strategic agility and absorption capacity are needed. This study uses a quantitative and qualitative approach. Data were collected from 118 Tourism SMEs in the territory of Indonesia. This study uses Structural Equation Modeling (SEM) analysis, in which the results of the analysis show that there is a significant positive relationship between digital capabilities and strategic agility and absorptive capacity. In addition, strategic agility and absorptive capacity have a significant direct positive relationship to competitive advantage and competitive advantage has a significant direct positive relationship to performance. However, digital capabilities do not have a direct significant effect on competitive advantage. Some of the factors that hinder the digital capabilities of Tourism SMEs include the limited resources they have and the unpreparedness of Tourism SMEs in making direct use of their digital capabilities to become a competitive advantage.