ORGANIZATIONAL READINESS ANALYSIS TOWARDS DIGITAL INNOVATION: A CASE STUDY OF CV CITRA GROUP

• Main Author: Aulia Rahman, Fikri
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64419
• Institution: Institut Teknologi Bandung

Advancement of digital technologies have changed the environment of businesses and organizations. Innovations, transformations, and digitalisations is believed by businesses as the tools to help them catching up the markets and trends, despite their low awareness of the businesses potentials and capabilities. In order to enable an effective change in approaching the digital market, businesses are required to perform an analysis of their potentials and capabilities, in which there only several citations that can be applied in Indonesia. To explore more of organizational readiness in an Indonesian firm, the study aims to identify which of variables or constructs that gave impacts the most, and then assessed as the factors of the readiness of the overall organization in enabling their ideas as a digital innovation. Benchmarked to previous studies, the study employs Organizational Readiness for digital innovation model as the primary tool, result based on the data gathered from the managerial level of an organization. While the proposed result is a confirmation of the model’s application in Indonesian business firms. The study using PLS-SEM as the software to measure the effects among seven sub-constructs of readiness based on the firm’s managerial level response, reveals that the biggest effect of organizational readiness subtracted from the IT readiness sub-construct as moderate effect, in which the organization fails six sub-constructs of readiness on low and unsubstantial scores, concluded as not ready to enable digital innovation. The analysis also reveals that the model would still require modification in processing the data gathered in Indonesia, since the result only manage to attain low to moderate effect on each sub-constructs. The study is expected to give insights towards other business firms in managing their business’ success variables and considering the sub-constructs readiness of business, especially the marketing aspects.