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Article
Publication date: 26 November 2021

Francesca Bernini, Paola Ferretti and Antonella Angelini

This paper aims to focus on the relation between digital transformation and banks’ reputation, as examined through the information disclosed by the five largest Italian…

Abstract

Purpose

This paper aims to focus on the relation between digital transformation and banks’ reputation, as examined through the information disclosed by the five largest Italian banking groups’ efforts to extend and enhance their digital resources. Considering digitalization as a key strategy for managing reputation, which, in turn, can leverage financial and value performance management, the paper investigates whether and how digital activities might affect banks’ reputation. Therefore, this paper proposes the relationship between digitalization and reputation as a lever for performance management and for increasing efficiency.

Design/methodology/approach

The authors use content analysis to generate a digital disclosure index, categorizing activities human, structural and relational. For banks’ reputations, the proxies are a measure of corporate reputation and a reputational risk index. Methodologically the study used multiple case studies, considered as particularly suitable to gain an in-depth understanding of the topic in the case of the five banks. A collection of secondary data and semi-structured interviews are included.

Findings

Overall, the digitalization-reputation link shows that banks’ reputation is variously affected, not only by exposure to risk (including reputational risk) but also by strategic issues such as digitalization and the effectiveness of the corresponding communication. Consequently, banks should view digitalization as a key driver to be considered not in a stand-alone perspective, but in a combined approach.

Research limitations/implications

Continued research should include the Covid-19 implications. Additionally, it would be important to compare a larger number of banks, with different characteristics, also including variables indicating the corporate governance mechanisms.

Practical implications

The analysis contributes to fostering scholars’ and practitioners’ management of the digital transformation challenge that is a current key-factor, capable of increasing banks’ value. It considers not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation.

Originality/value

This paper extends prior research on the digitalization-reputation relation by investigating digital transformation through disclosure of activities in this area within the Italian banking sector. It allows to leverage the key-factors that can contribute to increasing banks’ value, considering not only the drivers directly affecting monetary value but also the institutions’ social and relational value, as well as their reputation.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

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Article
Publication date: 1 November 2021

Muhammad Zeshan, Tahir Masood Qureshi and Irfan Saleem

This paper aims to clarify the relationship between digitalization and the employees’ autonomy. It proposes a positive relationship between digitalization and employees…

Abstract

Purpose

This paper aims to clarify the relationship between digitalization and the employees’ autonomy. It proposes a positive relationship between digitalization and employees. It explains why strategic human resource management (HRM) is essential in this relationship. The study aims to solve the control autonomy paradox related to the use of technology in organizations.

Design/methodology/approach

The paper opted for the explanatory study using a cross-sectional design. Responses were received from the alumni of a French business school using the survey strategy. Structural equation modelling has been used to validate the measure and to test the hypotheses.

Findings

The paper provides empirical evidence for the positive relationship between digitalization and employees’ autonomy. It suggests that an enabling control-based HRM system mediates the positive relationship between digitalization and autonomy.

Originality/value

The study enriches the literature in information technology by solving the control autonomy paradox associated with information technology. Moreover, the study also highlights the importance of an enabling control-based HRM system by underlining its role in developing the empowering organizational context.

Details

VINE Journal of Information and Knowledge Management Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5891

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Article
Publication date: 27 October 2021

Avirag Bajpai and Subhas C. Misra

This research paper aims to analyze the critical barriers to implementing digitalization in the Indian construction industry as Indian construction companies are lagging…

Abstract

Purpose

This research paper aims to analyze the critical barriers to implementing digitalization in the Indian construction industry as Indian construction companies are lagging in the implementation of digital technologies in the work environment.

Design/methodology/approach

In this research paper, a qualitative research approach is adopted, and multiple detailed interviews are conducted with industry and academic experts. Further, multi-criteria decision-making (MCDM) techniques are used to finalize the prioritization among various alternatives. The fuzzy-decision-making trial and evaluation laboratory (Fuzzy-DEMATEL) and interpretive structural modeling (ISM) techniques are employed to find the exact relationship among the identified alternatives.

Findings

This study identifies 14 critical barriers from an extensive literature review and multiple interviews with industry professionals, and further driving and critical barriers are identified.

Research limitations/implications

In this research paper, an exploratory study with a limited number of respondents from a large Indian construction company is carried out. Further, a detailed longitudinal analysis can be done to assess the subjectivity of the participants with more advanced statistical tools. However, this research discusses several points pertaining to the implementation of digitalization in the construction industry. The research further identifies the critical barriers to digitalization in the Indian construction industry.

Practical implications

The finding of the study has two-pronged implications. First, it provides a road-map to the construction industry by highlighting the engagement of top management as the key focus area for successful digitalization. Second, the finding also shows similarity of the digitalization process to the adoption of process improvement techniques like lean and total quality management (TQM), wherein the top management plays a crucial role in ushering in the implementation of a disruptive change.

Originality/value

The research is unique in two ways. First, this is one of the very few attempts to understand digitalization in the Indian context. Second, the research also demonstrates that the combination of fuzzy DEMATEL and ISM techniques can be successfully employed in the emerging field of construction digitalization research.

Details

International Journal of Quality & Reliability Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 22 October 2021

Marko Juhani Matalamäki and Sanna Joensuu-Salo

This paper examines how digitalization can affect three aspects of firm growth. The specific objectives are as follows: (1) to increase understanding of how digitalization

Abstract

Purpose

This paper examines how digitalization can affect three aspects of firm growth. The specific objectives are as follows: (1) to increase understanding of how digitalization affects pre-factors for growth, (2) to examine how digitalization transforms the growth process, especially growth strategies and (3) to examine how digitalization is apparent in the outcome of growth.

Design/methodology/approach

We explore six Finnish growth companies in order to understand the relationship between digitalization and growth. We used qualitative data collection and the Digimat measurement test for analyzing patterns, themes and best practices to generate a deeper understanding of the impact of digital technologies on business growth and growth strategies in these companies.

Findings

We propose that business growth includes three aspects of growth: pre-factors of growth, growth as a process and growth as an outcome. Digitalization may affect all of these aspects and strategic flexibility can affect business growth. Digitalization and strategic flexibility are intertwined; strategic flexibility enables the application of new technology, and digitalization enables flexibility.

Practical implications

Building on the results of the case studies, this research identifies relationships between digitalization, business growth and strategic flexibility.

Originality/value

This paper contributes to the growing literature on digitalization, providing new insight into its relation to business growth.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 3 September 2021

Nicola Raimo, Ivano De Turi, Michele Rubino and Filippo Vitolla

Digitalisation represents an important opportunity for SMEs or, in other words, a fundamental factor to help them implement competitive strategies aimed at innovation…

Abstract

Purpose

Digitalisation represents an important opportunity for SMEs or, in other words, a fundamental factor to help them implement competitive strategies aimed at innovation, cost reduction and internationalization. This study aims to investigate the determinants of the level of digitalisation of Italian SMEs.

Design/methodology/approach

This study firstly involves a survey based on short telephone interviews to measure the level of digitalisation of 101 Italian SMEs and, secondly, uses a regression model to identify the drivers of this level of digitalisation.

Findings

Empirical findings reveal that the Italian SMEs have an average level of digitalisation. Besides, they show that firm size, firm profitability and financial leverage represent drivers that positively influence the digitalisation of the Italian SMEs.

Originality/value

This study provides an important contribution to the academic literature by providing a first operationalization of the concept of business digitalisation and by broadening the knowledge of the drivers of the level of digitalisation in the SMEs context.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

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Article
Publication date: 23 August 2021

Therese Heltberg

The purpose of this paper is to explore how military strategic knowledge managers consider and respond to digitalization of operational processes in their revision of…

Abstract

Purpose

The purpose of this paper is to explore how military strategic knowledge managers consider and respond to digitalization of operational processes in their revision of military knowledge management technologies. The research question is: which strategic considerations and professional concerns impact decisions about how far digitalization should be incorporated into Army planning doctrine?

Design/methodology/approach

The paper presents material from a qualitative research study which observed the process of revising Danish Army Field Manual III. The empirical data include 12 in-depth interviews as well as documents related to the revision process. Data were analysed using a thematic approach.

Findings

The paper identifies and discusses strategic dilemmas arising from incorporating digitalization into planning doctrine. Two major areas of concern are addressed. The first involves considerations about the extent of digitalization, including concerns about risk and issues of timing regarding choices of specific digital solutions. The second involves potential limits of digitalization in relation to military notions of the role and identity of the commander. The article suggests that digitalization may impact on professional roles and identities and that strategic knowledge management developers need to be cognizant of this.

Originality/value

The paper contributes to the literature in two ways. First, the paper draws attention to the notions of risk and timing in relation to strategic decisions on how far knowledge management technologies should make use of possibilities brought about by digitalization. Second, the paper provides insight into how digitalization may profoundly alter professional roles and identities.

Details

Journal of Strategy and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-425X

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Article
Publication date: 27 July 2021

Lu Yang, Baofeng Huo, Min Tian and Zhaojun Han

Digitalization encourages the manufacturer to engage in inter-organizational technological activities (i.e. supplier IT integration and supply visibility) with its major…

Abstract

Purpose

Digitalization encourages the manufacturer to engage in inter-organizational technological activities (i.e. supplier IT integration and supply visibility) with its major supplier, which influences supply chain (SC) governance. This study tests a moderated mediation model that considers supplier IT integration and supply visibility as mediators between supply-side digitalization and supplier opportunism, and relational ties as a moderator in the relationship between inter-organizational technological activities and supplier opportunism.

Design/methodology/approach

Ordinary least square (OLS) regression is used to examine data from 200 firms in China describing their supply chain management (SCM) practices and perceived relationships with their major suppliers.

Findings

Supply-side digitalization is positively related to supplier IT integration and supply visibility. Supply-side digitalization has a positive indirect effect on supplier opportunism through supplier IT integration but a negative indirect effect through supply visibility. Relational ties weaken the positive effect of supplier IT integration and the positive indirect effect of supply-side digitalization on supplier opportunism. Relational ties also weaken the negative effect of supply visibility and the negative indirect effect of supply-side digitalization on supplier opportunism.

Originality/value

This study enriches understanding of SC governance in the digital age by empirically confirming that digital transformation brings both challenges and opportunities to SC governance and by clarifying the interplay of relational governance and technological activities. In addition, this study contributes to the SC digitalization literature by empirically validating the role of digitalization in promoting inter-organizational technological activities, as well as by revealing its potential dark side.

Details

International Journal of Operations & Production Management, vol. 41 no. 7
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 26 August 2021

Angelica M. Sanchez-Riofrio, Nathaniel C. Lupton and John Gabriel Rodríguez-Vásquez

Prior research has found that firms' adoption of digital technologies (i.e. digitalization) enhances transaction efficiency and improves firm performance. However, this…

Abstract

Purpose

Prior research has found that firms' adoption of digital technologies (i.e. digitalization) enhances transaction efficiency and improves firm performance. However, this finding is based on the assumption that firms respond to consumers' adoption of digital technology (market digitalization) in a timely fashion. The study investigates the impact of market digitalization on firm performance in Latin America, where resistance to change is often higher, despite the positive impact on performance when companies respond to the environmental shock of digitalization by restructuring.

Design/methodology/approach

Using data from seven Latin American countries from 1997 to 2018 (Argentina, Brazil, Chile, Colombia, Peru, Venezuela and Mexico), fixed-effects panel regression robustly supports the results.

Findings

Most Latin American firms fail to capitalize on the benefits of market digitalization, and their performance declines as a result. The authors extend research on digitalization by incorporating theoretical insights from the restructuring literature, finding that implementing a substantial restructuring strategy is a viable way to overcome market digitalization.

Originality/value

The authors demonstrate that the digitalization–firm performance relationship is more complex than has been described in studies using samples from developed economies. The authors establish restructuring as an effective adaptation strategy in Latin America, although the institutional environment's characteristics may constrain or discourage firms from adopting it.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 16 August 2021

Nathanaël Betti, Gerrit Sarens and Ingrid Poncin

This paper aims to investigate how the internal audit function (IAF) modifies its activities and practices in relation to the digitalisation the organisation. This paper…

Abstract

Purpose

This paper aims to investigate how the internal audit function (IAF) modifies its activities and practices in relation to the digitalisation the organisation. This paper specifically examines the use of data analytics and the performance of consulting activities by internal auditors.

Design/methodology/approach

This paper is based on a survey conducted with 82 chief audit executives based in the USA and members of the institute of internal auditors.

Findings

Results indicate a positive relation between the organisation’s level of digitalisation and the use of data analytics by internal auditors during their missions. Results also indicate that the organisation’s level of digitalisation has an indirect effect on the proportion of the internal audit planning dedicated to consulting activities. Specifically, the use of data analytics mediates the relationship between the organisation’s level of digitalisation and the proportion of the internal audit planning dedicated to consulting activities.

Research limitations/implications

This research was conducted amongst internal auditors based in the US Future research could investigate the insights of other internal audit stakeholders and investigate different legal contexts.

Practical implications

Results show that digitalisation increases the use of data analytics by internal auditors and the performance of consulting activities. The results, therefore, highlight the importance of these two aspects for the IAF to continue to bring value to organisations.

Originality/value

This research provides more insights on internal audit working practices. The digitalisation of the organisation leads the IAF to use more data analytics and perform more consulting activities.

Details

Managerial Auditing Journal, vol. 36 no. 6
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 19 July 2021

Shaohua Song, Xianliang Shi, Guang Song and Fahian Anisul Huq

Supply chain integration (SCI) is key to implementing omni-channel retailing (OCR) strategy. In this paper, the authors explore the role of digitalization as a driver of…

Abstract

Purpose

Supply chain integration (SCI) is key to implementing omni-channel retailing (OCR) strategy. In this paper, the authors explore the role of digitalization as a driver of SCI, as well the role of human capital (HC) in digitalization, using a knowledge management (KM) perspective.

Design/methodology/approach

An empirical study was conducted using survey research. A sample of 188 omni-channel retailers in the Chinese market was analyzed using factor analysis and structured equation modeling (SEM) to examine the hypotheses presented in the conceptual model.

Findings

This study reveals that HC is positively related to the level of a firm's digitalization in OCR, and that digitalization is positively related to the retailer's SCI. Moreover, the authors found that employees' capital has a greater impact on digitalization than managers' capital, while digitalization has a stronger driving effect on internal and customer integration.

Research limitations/implications

The findings suggest that although digitalization requires retailers to accept the long-term investment challenges, it has a significant positive effect on the key of OCR strategy implementation, i.e. SCI. The findings also provide evidence for the application of KM in OCR, as this theoretical lens enriches our understanding of the phenomena of SCI in OCR and provides explanation to our results by linking digitalization and HC.

Originality/value

Digitalization is quantified and examined in OCR. Moreover, this study reveals the importance of HC on the implementation of digitalization and the different effects of digitalization on each dimension of SCI.

Details

Industrial Management & Data Systems, vol. 121 no. 11
Type: Research Article
ISSN: 0263-5577

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