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Unveiling the Determinants of Digital Strategy from the Perspective of Entrepreneurial Orientation Theory: A Two-Stage SEM-ANN Approach

Author

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  • Alhamzah Alnoor

    (Southern Technical University)

  • Abbas Gatea Atiyah

    (University of Thi-Qar)

  • Sammar Abbas

    (Kohat University of Science and Technology)

Abstract

The introduction of digital technologies has revolutionized every aspect of human life. As digital technologies transform the landscape of businesses, the resistance to the implementation of digital technologies poses a challenge for businesses. Businesses need a clear digital strategy to overcome the resistance issue[s]. Various factors influence an organizational digital strategy that needs to be investigated to comprehend the optimal benefits of digital technologies. Accordingly, this study’s purpose is to investigate entrepreneurial orientation (EO) considerations that influence digital strategy performance in the context of the food industry. The study views the factors from the viewpoint of EO theory. Digital strategy performance refers to the effectiveness of digital strategy toward the successful adoption and execution of digital technologies. The study has adopted a hybrid partial least-squares structural equation modeling (PLS-SEM) and artificial neural network (ANN) approach to determine the influence of the aforementioned factors on digital strategy performance. In this connection, data were collected from 491 respondents (managers and heads of departments) employed in 83 food firms in different countries across Europe. The results revealed that there exist linear links among the dimensions of EO and digital strategy performance. It was found that all five dimensions of EO (autonomy, proactiveness, innovativeness, competitive aggressiveness, and risk-taking) significantly influence digital strategy performance and that the digital strategy moderates the relationship between predictors and outcome variable. Theoretically, our study makes important contributions in understanding the role of EO dimension—which is rarely investigated in the context of the food industry. Finally, the study has some worthy practical implementations for the executives and other stakeholders in terms of digitalization of the food industry.

Suggested Citation

  • Alhamzah Alnoor & Abbas Gatea Atiyah & Sammar Abbas, 2024. "Unveiling the Determinants of Digital Strategy from the Perspective of Entrepreneurial Orientation Theory: A Two-Stage SEM-ANN Approach," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(2), pages 243-260, June.
    • Handle: RePEc:spr:gjofsm:v:25:y:2024:i:2:d:10.1007_s40171-024-00385-0
    DOI: 10.1007/s40171-024-00385-0
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