In contrast to existing studies, this paper aims to propose that digital transformation does not depend on a single condition; rather, it depends on the interaction between internal and external factors of a firm. Therefore, the aim of this paper is to examine the effect of a combination of internal and external factors on a firm's digital transformation intention.
An empirical analysis on a sample of 112 Chinese small- and medium-sized firms was conducted by applying smart-PLS and fuzzy set qualitative comparative analysis (fsQCA).
The results of smart PLS show that external pressures (institutional and market pressures) and human capital have a positive impact on corporate digital transformation intentions. From a combination perspective, the results of the fsQCA show that there are five causal conditions that lead to high digital transformation intention. In contrast to the net effect, the results of fsQCA show that different combinations of states of internal (human capital, organizational culture and technological capital) and external elements (institutional and market pressures) of the firm are likely to stimulate digital transformation intention.
This study provides empirically based insights into firms' digital transformation intentions and advances the current understanding of the drivers and inhibitors of digital transformation. Unlike most current research, which tends to focus on the net effect of factors influencing the digital transformation of enterprises, this study focuses on identifying the core elements influencing enterprises' digital transformation intention, especially the joint effect of different factors, both internal and external to the enterprise. The combined SEM and fsQCA findings of this paper not only enrich the existing theories on digital transformation but also have high value in guiding the digital transformation of firms.
