Digital literacy and business transformation: social-cognitive learning perspectives in small business enterprises

Raharjo, Kusdi; Afrianty, Tri Wulida; Prakasa, Yudha Article Digital literacy and business transformation: socialcognitive learning perspectives in small business enterprises Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Raharjo, Kusdi; Afrianty, Tri Wulida; Prakasa, Yudha (2024) : Digital literacy and business transformation: social-cognitive learning perspectives in small business enterprises, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 11, Iss. 1, pp. 1-18, https://doi.org/10.1080/23311975.2024.2376282 This Version is available at: https://hdl.handle.net/10419/326421 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Cogent Business & Management ISSN: 2331-1975 (Online) Journal homepage: www.tandfonline.com/journals/oabm20 Digital literacy and business transformation: social-cognitive learning perspectives in small business enterprises Kusdi Raharjo, Tri Wulida Afrianty & Yudha Prakasa To cite this article: Kusdi Raharjo, Tri Wulida Afrianty & Yudha Prakasa (2024) Digital literacy and business transformation: social-cognitive learning perspectives in small business enterprises, Cogent Business & Management, 11:1, 2376282, DOI: 10.1080/23311975.2024.2376282 To link to this article: https://doi.org/10.1080/23311975.2024.2376282 © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group View supplementary material Published online: 13 Jul 2024. Submit your article to this journal Article views: 4319 View related articles View Crossmark data Citing articles: 8 View citing articles Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oabm20 EntrEprEnEurship and innovation | rEsEarch articlE Cogent Business & ManageMent 2024, VoL. 11, no. 1, 2376282 Digital literacy and business transformation: social-cognitive learning perspectives in small business enterprises Kusdi raharjo , tri Wulida afrianty and Yudha prakasa Department of Business administration, Brawijaya university, Malang City, indonesia ABSTRACT technological disruption and the covid-19 pandemic have challenged sMEs to adapt to digital consumer behaviour, necessitating digital transformation. this study examines the impact of digital literacy on digital transformation, exploring the antecedent factors shaping digital literacy and the government’s role in providing it infrastructure. a survey method was undertaken for this study with a total sample of 293 small businesses in East Java, indonesia. this study employed structural equation modeling through pls-sEM for the data analysis. the research results show that locus of control, need for achievement, and social capital significantly and positively influence digital literacy. digital literacy has been proven to significantly and positively impact digital business transformation. it infrastructure does not significantly affect the moderation between digital literacy and digital transformation. the findings of this research will assist in overcoming technology usage challenges faced by sMEs in East Java, particularly those exacerbated by the covid-19 pandemic. Business actors can leverage the indonesian government’s efforts in business incubation and facilitating access to technology and the internet to enhance their social capital. sMEs should consider joining sectoral organisations or associations to build relationships with other business actors and engage in training and capacity-building initiatives. 1. Introduction Business organisations have been facing an uncertain environment since the outbreak of the covid-19 pandemic. the business entities that have been most affected by the pandemic are sMEs. a survey by the asian development Bank (2020) shows that nearly 49% of the sME sector in indonesia has temporarily closed, experiencing a sales decrease of more than 30%, and more than 50% of sMEs have temporarily laid off employees. Government policies to control the spread of the covid-19 virus through physical restrictions on the population have resulted in a slump in various economic activities, except for economic players who can adapt and move to digital platforms Mas’udi and Winanti (2020). the covid-19 pandemic has accelerated the technological disruption that has already been a problem for sMEs in indonesia. these two disruptive changes demand that companies, including sMEs, change their business models. the impact is that business models that previously functioned well are no longer relevant. social restrictions require companies to change their business processes, many of which use digital technology. digital transformation has become the key solution to these two simultaneous changes (Mas’udi & Winanti, 2020). research shows that digital business transformation increases resilience and drives the creation of new business models (rogers, 1983; venkatesh & davis, 1996), new distribution channels, and ways of creating value needed by various customer segments (rogers, 1983). digital transformation, in addition to being the right alternative solution to the covid-19 pandemic and © 2024 the author(s). Published by informa uK Limited, trading as taylor & Francis group CONTACT Kusdi Raharjo K[email protected].id Department of Business administration, Brawijaya university, Malang City, indonesia. https://doi.org/10.1080/23311975.2024.2376282 this is an open access article distributed under the terms of the Creative Commons attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. the terms on which this article has been published allow the posting of the accepted Manuscript in a repository by the author(s) or with their consent. ARTICLE HISTORY received 3 January 2024 revised 19 June 2024 accepted 30 June 2024 KEYWORDS digital literacy; business transformation; social cognitive learning; sMEs; technology adoption REVIEWING EDITOR Eric liguori, Florida state university, united states SUBJECTS asian studies; Entrepreneurship and small Business Management; Management of technology & innovation; Business, Management and accounting 2 K. raharJo Etal. information technology disruption, also provides other advantages, such as the ability to reach a broader market, including exports. however, the digital transformation of sMEs in indonesia is still very low, only around 8%. therefore, this research was conducted to explore the importance of digital transformation for small business actors in indonesia, and this is because the level of transformation of small business actors in indonesia is still low. two relevant theories explain the level of technology adoption: the technology diffusion theory rogers (1983) and the technology acceptance model (davis, 1989). technology diffusion is carried out by inventors, change agents, or parties interested in disseminating new technology to encourage behavioural change. as a relatively new innovation, diffusion activities regarding digital technology have been massive. however, sME actors’ adoption of digital technology in indonesia is still relatively low. the second theory, the technology acceptance model, can explain this phenomenon. the technology acceptance Model (taM) can predict the acceptance of new technology, including digital technology. acceptance and adoption of new technology are determined by perceived usefulness and ease of use. this theory was developed based on the theory of planned Behavior, where the intention to behave is influenced by perceived behaviour control, social norms, and attitude (ajzen, 2011; truxillo et al., 2015). among these three determinants of behaviour, perceived behaviour control is crucial for sMEs, as they need the necessary competence to adopt digital technology. sMEs, especially small businesses, typically have limited financial capital, simple organisation and management, a high mortality rate, low capacity for knowledge absorption, low employee skills, low investment capability, and limited market (lekhanya, 2016). digital technology has benefitted small businesses, but its adoption is still varied. For micro, small, and medium enterprises [MsME] actors, although they have a positive attitude towards digital technology, limited abilities have become a barrier to its use. this is due to the limitation of their digital literacy. technology that provides high benefits for the smooth running of businesses but has not been able to be used optimally due to knowledge and skills limitations. several studies have shown that digital literacy is one of the antecedent factors influencing the speed of digital transformation (cetindamar et al., 2024; Kulathunga et al., 2020; okundaye et al., 2019; priyono et al., 2020; Zhang et al., 2022). the level of information technology literacy reflects a person’s competence in the digital field. the digital literacy of MsME actors is still very limited (Erlanitasari et al., 2020). this is reflected in the ability of MsME actors to carry out marketing activities. as many as 36% of MsMEs in indonesia are still engaged in conventional marketing, while 37% of MsMEs only have basic online marketing capacities such as access to computers and broadband. the remaining 18% of MsMEs have medium-level online capacities, such as using websites and social media. only 8% have advanced digital marketing capacities. this means that the ability of MsMEs to utilise digital technology is still low. in contrast, the ability to undergo digital transformation is an essential requirement that must be mastered by MsMEs in order to adapt to the environmental uncertainties caused by the covid-19 pandemic (priyono et al., 2020). in other words, digital literacy is a problem for small businesses to undergo digital transformation. the level of digital literacy is an outcome of a learning process. the success of a learning process is determined by individuals’ internal factors, such as locus of control and motivation for achievement, and external factors, such as social capital (networks possessed). locus of control affects the length of learning time Bodill and roberts (2013), entrepreneurial intention córcoles-Muñoz etal. (2019), and self-efficacy (McGee & McGee, 2016). other studies have revealed that locus of control, self-efficacy, and need for achievement are antecedent factors determining the progress of MsME businesses (pramono etal., 2021). individuals with high achievement motivation tend to have moderate risk liking, forward and dynamic orientation, strong work resilience, confidence in performing tasks to achieve goals, time discipline, responsibility, and always learning from their own experiences and others. Meanwhile, external factors such as social capital have also been shown to encourage MsME actors to improve their digital literacy. Findings from priyono et al. (2020) have shown that limitations in the digital literacy of individual MsME actors can be improved by strengthening the social capital ecosystem within the MsME environment. it can be concluded that individuals’ internal and external characteristics are inseparable in improving digital literacy. Furthermore, studies on internal and external factors in increasing sMEs’ digital literacy in indonesia have not been found so far. Based on these factors, this coGEnt BusinEss & ManaGEMEnt 3 study aims to examine the effect of digital literacy on digital transformation by exploring antecedent factors that shape digital literacy and the role of the government in providing it infrastructure. 2.Theoretical background and hypotheses development 2.1. Theoretical background 2.1.1. Social cognitive theory the social cognitive theory (sct) was developed by Bandura (1986). Wang et al. (2019) state that there is mutual causation in this sct model. in this reciprocal causality model, personal internal factors such as cognitive, affective, and biological events, behaviour patterns, and environmental influences are interactive determinants that influence each other in two directions (Wang et al., 2019). in the sct Bandura (1986), which is the development of social learning theory (Bandura, 1971), individual personal and external characteristics are believed to be two important factors that greatly determine the outcome of the learning process. personal characteristics include the perspective and motivation possessed by individuals. in contrast, external characteristics that are believed to influence the outcome of a learning process are social interactions carried out by individuals with other individuals or activities and collaboration within a community of the individual concerned (lee & lee, 2018). specifically, social cognitive theory explains that the learning process occurs in a social context where dynamic and reciprocal interactions occur between individual personal factors, the environment, and their behaviour (Bandura, 1986). one of the basic principles of social cognitive theory is that individuals will develop or adjust their judgments and opinions about something through observation and by learning from the experiences of other people in their environment, in addition to through the individual’s direct experience (Bandura, 1986, 2001; stegmann et al., 2012). social cognitive theory emphasises our ability to learn without direct experience. Based on research from Yilmaz (2011), according to cognitive learning theory, learning that occurs in individuals (one of which can produce digital literacy) is a cognitive process influenced by individual internal and external factors. therefore, social cognitive theory is relevant to this research because digital literacy is one of the results of learning, and the learning process is obtained from external factors such as social capital and internal factors, namely locus of control and need for achievement. specifically, social cognitive theory explains that the learning process occurs in a social context where dynamic and reciprocal interactions occur between individual personal factors, the environment, and their behaviour (Bandura, 1986). 2.1.2. Technology acceptance model taM (technology acceptance model), created by davis (1989), is a hypothesis that may be used to consider how new technologies are accepted. the simplicity of use and the advantages of renewable technology for users are the two factors described in this theory that determine whether a technology will be adopted, and both can affect people’s behavioural intentions (chen & aklikokou, 2020). consequently, when a new technology emerges due to human ingenuity, other people who will utilise it will prioritize it. the same is true for East Java’s micro and small firms, who will consider factors such as convenience and advantages of utilizing technology. Furthermore, the taM theory is a development of the theory of planned behaviour, where the intention to behave is influenced by perceived behaviour control, social norms, and attitude (ajzen, 2011; truxillo et al., 2015). of these three behavioural determinants, perceived behaviour control is crucial for MsME actors because they must have competence in that field to adopt digital technology. a positive attitude towards digital technology and conformity with social norms that apply in society is not enough to support the decision to accept and use new technology. MsME actors must have confidence that they can use the technology properly (perceived behaviour control). the latter is highly determined/influenced by the digital literacy level of MsME actors. understanding of the ease of use of technology and the usefulness of this technology can be obtained by business actors through the learning process as described in social cognitive theory Bandura (1986) and obtained through internal and external micro and small business actors (Yilmaz, 2011). 4 K. raharJo Etal. 2.2. Hypotheses development literacy is a cognitive component that can be learned (dinç aydemir & aren, 2017). digital literacy can be defined as an individual’s understanding or knowledge of things related to digital technology, which can be acquired through the learning process. From the perspective of social cognitive theory (Bandura, 1986), which is a development of social learning theory Bandura (1971), individuals’ personal and external characteristics are believed to be two important factors that determine the outcome of the learning process. personal characteristics include an individual’s perspectives and motivation, while external characteristics believed to influence the outcome of a learning process are social interactions between individuals or activities and collaborations within a community of the individual concerned (lee & lee, 2018). Based on cognitive learning theory, the learning that occurs in individuals [which can produce digital literacy] is a cognitive process influenced by internal and external factors (Yilmaz, 2011). specifically, social cognitive theory explains that the learning process occurs in a social context with dynamic and reciprocal interaction between an individual’s personal factors, environment, and behaviour (Bandura, 1986). one of the basic principles of social cognitive theory is that individuals will develop or adjust their judgments and opinions about something through observation and learning from the experiences of others in their environment, in addition to their own direct experiences (Bandura, 1986, 2001; stegmann et al., 2012). using the perspective of social cognitive theory, this research also examined the influence of individuals’ internal and external characteristics on digital literacy, which we identified as an outcome of the learning process in this study. two internal characteristics of individuals, namely locus of control and need for achievement, will significantly influence digital literacy possessed by small business owners or managers. at the same time, the external characteristic we examine to influence digital literacy in this study is the social capital of small business owners or managers. locus of control refers to a person’s belief in control over life events. some people feel personally responsible for things that happen to them. these people are labelled as internal. others feel that forces outside their control determine their life outcomes, and these people are labelled as external. Most people fall somewhere between these two extremes, forming a continuous distribution of locus of control beliefs. locus of control is considered a relatively stable dispositional characteristic, although it can be certified through experience (craig et al., 1984; phares, 1976; reid, 1985). locus of control is defined by rotter (1990) as an individual’s perception of their ability to control specific actions or events that affect their lives. locus of control is also related to an individual’s belief about whether social outcomes (i.e. everything that happens to or is obtained by the individual) are caused by their efforts or are the result of luck, chance, fate, or the intervention of others. individuals who connect social outcomes with their efforts are categorised as having an internal locus of control. on the other hand, individuals who associate social outcomes with factors such as chance and the like are believed to have an external locus of control (Gupta et al., 2018). if connected with social cognitive theory, locus of control is one of the individual’s factors that can influence their behaviour in learning so that the learning outcomes will be different between individuals with an internal and external locus of control. individuals with an internal locus of control will make more diligent and serious efforts to develop their digital literacy, and vice versa for individuals with an external locus of control. in other words, it can be said that the locus of control influences the digital literacy acquired through the learning process. the need for achievement is one of the strong psychological motivators for individual actions. Based on Mcclelland’s theory of the need for achievement, it is assumed that individuals with a high need/ motivation for achievement will also have a high desire for success. need for achievement, abbreviated as nach, is a motivation to excel and is referred to as a need to achieve. individuals are motivated to achieve something when they feel challenged and realise that the results they will obtain reflect their success or failure. the need for achievement has been studied in business and educational settings. Mcclelland concluded that the level of need for achievement demonstrated by leaders in a business directly affects the economic growth of a business (atkinson, 1964; harackiewicz etal., 1997; Mcclelland, 1961). similar to the locus of control, if related to social cognitive theory, the need for achievement is also included in the individual’s factor that strongly influences digital literacy. We believe that individuals coGEnt BusinEss & ManaGEMEnt 5 with a high need for achievement will make more diligent and serious efforts to develop their digital literacy, and vice versa for individuals with a low need for achievement. in other words, it can be said that the need for achievement/motivation for achievement influences the digital literacy acquired through the learning process. the World Bank defines social capital as the groups, networks, norms, and trust individuals possess to be utilised for productive purposes. social capital generates opportunities for business actors to obtain economic benefits through social and economic interactions (svendsen, 2003). social capital is considered the sacrifice of an individual’s time, energy, and thoughts designed to improve cooperative relationships with others (oxoby, 2009). Furthermore, Felício et al. (2014) believed that social capital relates to solidarity, self-confidence, and social relationships involving family, friends, and colleagues in business operations. Moreover, the social exchange theory of George c. homans forms the basis of the social capital theory. social exchange theory helps the dynamics of one individual exchanging with another voluntarily, providing benefits to others in a reciprocal relationship. this means that social capital is the ability of society to establish relationships and cooperation based on shared goals and plans. social capital is needed in micro, small, and medium-sized enterprises (MsMEs) to create relationships between consumers and stakeholders. social capital provides a source of energy for a group to face business challenges. in this study, social capital is an external factor contributing to the development of digital literacy possessed by business actors, including small businesses. this is in line with one of the basic principles of the social cognitive theory that individuals will form views, opinions, and understandings of something through observation and learning from the experiences of others in their environment, in addition to the direct experiences of the individual concerned (Bandura, 1986, 2001; stegmann etal., 2012). therefore, based on the explanation of the relationship between locus of control, need for achievement, social capital, and their relationship with digital literacy, the hypotheses developed in this research proposal are: hypothesis 1: ‘the locus of control held by small business owners/managers has a significant influence on the digital literacy of small business owners/managers’. hypothesis 2: ‘the need for achievement held by small business owners/managers has a significant influence on the digital literacy of small business owners/managers.’ hypothesis 3: ‘the social capital held by small business owners/managers has a significant influence on the digital literacy of small business owners/managers.’ as explained in the background section, digital transformation is necessary for business enterprises, including small-scale businesses, in the current digital era and driven by the covid-19 pandemic. digitisation is the implementation of it or technology to change existing business processes. For example, new online or mobile communication channels can be created that allow all customers to connect with the company, easily changing the company’s interaction with customers who use traditional methods (ramaswamy & ozcan, 2016). information technology is the main driver for capturing new business opportunities by changing existing business processes such as communication, distribution, and business relationship management (Baraldi & nadin, 2006; leviäkangas, 2016; ramaswamy & ozcan, 2016; van doorn et al., 2010). Furthermore, verhoef et al. (2021) define digital transformation as how companies use digital technology to develop new digital business models that help create and adapt more value for the company. the measurement of digital transformation in this study is consistent with the research conducted by (lin etal., 2020; venkatesh etal., 2003; Yu et al., 2018), first, the company intends to continue using e-business. second, the company expects to continue using e-business. third, the company plans to continue using e-business. digital transformation can be defined as ‘the change in the way a company uses digital technology to develop new digital business models to create added value that is suitable for the company’ (verhoef et al., 2021). in other words, digital transformation is a process of utilizing digital technology to create or modify existing business processes to meet the changing needs of the business and market. to successfully carry out and manage digital transformation, adequate and relevant capabilities are required. information technology can help improve organizational performance. however, to utilize technology, organizations must have access to technology and possess digital literacy. digital literacy is one of the most important skills, especially in today’s increasingly competitive business environment (Mahapatra & lai, 2005). 6 K. raharJo Etal. according to alshare et al. (2004), previous researchers have no agreement regarding the definition and measurement methods of digital literacy. some researchers define digital literacy as computer ownership and look at the time spent in front of a computer. Meanwhile, Ezziane (2007) defines digital literacy as a person’s ability to understand the characteristics of computers and to operate and utilize information technology to support their goals. in this study, the Ministry of communication and information developed the digital literacy measurement tool to establish the digital literacy index, which includes information and data literacy, critical thinking, communication skills, ethics in technology, personal security, device security, and technology proficiency (doni, 2022; unEsco, 2018). in this research, we believe that digital literacy possessed by small businesses is one of the determining capabilities for their success in carrying out and managing digital transformation. the importance of digital literacy for the success of a company’s digital transformation, including small businesses, can be explained using dynamic capability theory. dynamic capability theory suggests that a company’s success is largely driven by its ability to adapt to a changing environment to create value for the company, thereby achieving a competitive advantage. teece etal. (1997) defines dynamic capability as a part of the competence/ability that enables a company to produce new products or services to respond quickly to a changing environment. in this research, we consider digital literacy as one of the forms of dynamic capability required for the success of an organisation in carrying out and managing its digital transformation. several studies have shown that digital literacy is one of the antecedent factors influencing the speed of digital transformation (cetindamar et al., 2024; Kulathunga et al., 2020; okundaye et al., 2019; priyono et al., 2020; Zhang etal., 2022). therefore, based on dynamic capability theory and previous research on digital literacy as one of the antecedent factors of digital transformation, the hypothesis that we developed is: hypothesis 4: ‘digital literacy significantly influences the digital transformation of small businesses’. regarding digital literacy, which significantly influences the success of digital transformation, the availability of adequate digital infrastructure in a business’s operational area, including small-scale businesses, also affects the level of success of the digital transformation. in this study, we believe that the better the quality of digital infrastructure accessible to small businesses, the stronger the influence of digital literacy on the success of the digital transformation they undertake. conversely, suppose the quality of digital infrastructure accessible to small businesses is low. in that case, the influence of digital literacy on the success of the digital transformation they undertake will also be lower. information technology is a major investment for companies, with companies typically spending over 4.2% of their annual revenue on it, and typically around 55% of a company’s it budget is on infrastructure. infrastructure capabilities are difficult to create because they are a complex combination of technology, processes, and human assets, and competitors need a long lead time to imitate them, so it infrastructure can become a source of competitive advantage. the demands of new business initiatives are immediate, but building an infrastructure that enables adaptable strategies often takes a lot of time and expertise. the identification process is not an easy task. in conclusion, it infrastructure is a technological facility that serves as a company’s resource in creating competitiveness and competitive advantage (Weill et al., 2002). therefore, the hypothesis developed is: Figure 1. Research model. coGEnt BusinEss & ManaGEMEnt 7 hypothesis 5: ‘the influence of digital literacy on small business digital transformation will be moderated by digital infrastructure’. Based on our hypothesis development, the hypothesis model in this study is shown in Figure 1. 3. Research methodology 3.1. Ethical approval this research has undergone a review process conducted by the ethics committee within the department of Business administration through the research and community service agency, Brawijaya university. it has been assigned the reference number 01053/un10.F00301/B/pG/2022, indicating compliance with ethical procedures in accordance with the declaration of helsinki. 3.2. Participant and procedure the study has also fulfilled the consent form requirements included in the questionnaire (Gform online) in writing and has obtained approval from the respondents. 3.3. Sampling and data collection the total number of small businesses in East Java in the non-agricultural sector is 700 units, hereinafter referred to as the population. We applied non-probability sampling with a convenience sampling technique. From 700 questionnaires distributed through online and offline questionnaire distribution to small business actors in 38 districts/cities in East Java, 304 respondents returned the questionnaires to the researchers, of which only 293 responses can be included in the data analysis. data analysis was performed using partial least square with variance-based sEM with the help of smartpls software. 3.4. Measurement a measurement instrument was adapted from the available literature to verify and validate the proposed model and test the research hypotheses. a five-point likert scale was used, ranging from [strongly agree] to [strongly disagree]. the locus of control measurement was adapted from toti et al. (2021); the need for achievement measurement from saif and Ghania (2020). the measurement of the social capital variable was adapted from huang and liu (2019). Furthermore, we measure digital literacy using the instrument from the Ministry of communication and information of the republic of indonesia (2020). For the it infrastructure variable, we adapted the measurement from Barykin etal. (2020), purbasari etal. (2021), satalkina and steiner (2020), schiavone et al. (2021), subramaniam et al. (2021). the last variable, digital Business transformation, was adapted from Gupta and Bose (2022). 3.5. Data analysis in this study, we are utilising a quantitative technique to answer questions of an explanatory nature. it is essential to evaluate hypotheses using a statistical method, specifically the pls-sEM technique. this approach is reliable and has a lot of potential for academics studying entrepreneurship. according to hair and hult (2021), the pls-sEM technique is more robust, has fewer identification issues, works with smaller and larger samples, and incorporates both formative and reflective constructs. We are using the smartpls software to implement the pls-sEM in this work. 4. Result and analysis data processing was carried out using pls-sEM-based method, using smartpls software version 4.0. the steps undertaken in the partial least square (pls) method include designing the outer model, designing the inner model, and testing the hypotheses. 14 K. raharJo Etal. Disclosure statement no potential conflict of interest was reported by the author(s). About the authors Kusdi Raharjo is currently a professor at the department of Business administration, universitas Brawijaya. he completed his Masters in 1992 and doctoral in 1996 at universite de nice - sophia antipolis France. his scientific field is hrM and organization. he has authored/co-authored several research papers and also have supervised several doctoral students. Tri Wulida Afrianty currently serves as head of the Master of Business administration study program at Brawijaya university. he completed a master’s double degree in 2005 at Gajah Mada university and in 2008 at monas university. and completed his doctoral degree at curtin university 2003. his areas of expertise are organizational behavior and human resources. Yudha Prakasa is currently an active lecturer at the department of Business administration, Brawijaya university. he completed his undergraduate program at diponegoro university in 2010. and then completed his master’s program at Brawijaya university in 2013. his scientific fields are human resources and small Business. Funding this research was funded by the Brawijaya university through professor research [Grant no: 3/un10.F03.06/pn/2022]. ORCID Kusdi raharjo http://orcid.org/0000-0003-4319-0644 tri Wulida afrianty http://orcid.org/0000-0002-8746-4718 Yudha prakasa http://orcid.org/0000-0001-8358-8601 Data availability statement the authors are available to share the data collected for this purpose upon reasonable request, namely for research purposes. if you are interested in this data, please contact the corresponding author, Kusdi raharjo. References abimanyu, a., raharjo, K., & afrianty, t. W. (2023). the influence of locus of control and need for achievement on digital business transformation and mediation of digital literacy. Brawijaya international conference on Business, administration, taxation, and tourism (BicBatt 2022) (pp. 16-27). atlantis press. ajzen, i. (2011). The theory of planned behaviour: Reactions and reflections (vol. 26, pp. 1–18). taylor & Francis. alojail, M., alshehri, J., & Khan, s. B. 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Variables item Locus of control LoC1 When i make plans, i’m almost certain to make them work LoC2 i can pretty much determine what will happen in my life LoC3 My life is determined by my own actions need for achievement nFa1 i would rather do now and then. nFa2 i like doing. nFa3 i like doing very much. social capital sC1 i interactively learn from others sC2 i discuss issues with others in a constructive way when things go wrong sC3 i usually exchange opinions and ideas during decision making on task issues sC4 i regularly exchange information with community sC5 i collaborate with different project members to get information about customers’ needs sC6 i often connect with other projects within the organization to get new product ideas sC7 My colleagues are mutually trusting and supportive of change. sC8 My organizational climate welcomes the development of new ideas. Digital literacy DL1 i am able to search for and access data, information, and digital media content as needed DL2 i am able to filter data, information, and content as needed in digital media DL3 i am able to direct/manage the search for data, information and content according to my needs in digital media DL4 i’m used to finding out if the information i find on websites is true or false DL5 i am used to finding out who is the author of information to know its track record/credibility DL6 i am used to comparing sources of information to decide if the information is correct DL7 i am able to connect my device to the wifi network DL8 i am able to download files/applications from the internet DL9 i am able to upload (upload) files to the internet Digital business transformation DBt1 novel partnerships for business transformation DBt2 updated business transformation customer relationships for business transformation DBt3 Revisions to revenue architecture for business transformation DBt4 novel delivery channels for business transformation DBt5 Re-segmentation for business transformation DBt6 Revised value proposition from the product/service for business transformation it infrastructure iti1 the hardware that we have for business is always updated at least once every 2 (two) years iti2 the hardware we have is adequate for business needs iti3 the speed of the internet network that we have at our place of business is adequate iti4 network/data security on our business computers can be maintained properly iti5 the software available for our business is suitable for knowledge sharing needs iti6 the software available for our business can be accessed through various devices (PC/laptop, cellphone, etc.) iti7 the software we use for business can speed up the time to complete work iti8 in my business environment there is an adequate internet network for cooperation and collaboration with partners iti9 in my business environment there is adequate internet speed for cooperation and collaboration with partners iti10 in my business environment there are sufficient applications for cooperation and collaboration with partners iti11 in my business environment there are adequate alternative communication media for cooperation and collaboration with partners. iti12 in my business environment there are adequate communication media tools for cooperation and collaboration with partners. iti13 in my business environment there is an adequate database for cooperation and collaboration with partners and conducting market analysis