Enhancing Port Performance through Digital Transformation: The Role of Networking Capability and Organizational transformation in Indonesian Container Ports.

Abstract

Although digital transformation in port management has been widely discussed, previous studies have not extensively examined how organizational capabilities translate into performance through digital adoption at ports. This study addresses this gap by positing digital adoption as a mediating mechanism linking network capabilities and organizational transformational characteristics to port performance at container ports in Indonesia. This study aims to examine the influence of networking capabilities and organizational transformational characteristics on digital adoption, as well as its impact on port performance at container ports in Indonesia. This study also analyzes the mediating role of digital adoption in the relationship between organizational capabilities and port performance. The study uses an explanatory design with a quantitative approach through a survey method. Data were collected using structured questionnaires from 103 container ports throughout Indonesia with respondents being decision makers and core port function managers, namely General Managers or Operations Managers or Marketing Manag-ers if the General Manager was not available. Data analysis was conducted using Structural Equation Modeling with a Partial Least Squares approach through SmartPLS. The results of the study indicate that networking and organizational transformational capabilities have a significant effect on digital adoption, and digital adoption has a significant effect on port performance. This study also found that digital adoption significantly mediates the relationship between organizational transformation and port performance. However, this study does not prove that digital adoption mediates the influence of net-working capability on port performance.