Digital competitive advantages of MSMEs and the antecedents factor (digital creativity and digital culture)

Abstract

The aim of this study is to fill the gap in the literature regarding the empirical analysis of digital competitive advantage and to extend the knowledge about its antecedents such as digital culture and digital creativity. The subject of this study is micro, small and medium-sized enterprises (MSMEs), which are known to have barriers and constraints to the adoption and adaptation of technology in their businesses. Using a sample of 400 respondents from 400 MSMEs in Riau Province, Indonesia, the results of the PLS-SEM analysis revealed that digital culture plays an important role in improving MSMEs' digitalization capabilities in the context of enhancing digital creativity to help MSMEs gain digital competitive advantage. Furthermore, this study explains several elements that need to be fulfilled for an MSME to be said to have a digital culture, digital creativity and digital competitive advantage. Of course, these insights are useful for MSME managers or owners when creating a roadmap for implementing technology in their businesses to optimize the use of technology despite the existing constraints.