THE EFFECT OF DIGITAL TECHNOLOGY USAGE ON COMPETITIVE ADVANTAGE WITH THE MEDIATION OF ORGANIZATIONAL LEARNING AND ORGANIZATIONAL STRATEGIC AGILITY IN MICRO, SMALL, AND MEDIUM ENTERPRISES

Abstract

The era of digital disruption, accelerated by the COVID-19 pandemic, has driven Micro, Small, and Medium Enterprises (MSMEs) to adopt digital technology to survive and compete. The use of technologies such as online platforms and digital payments has become a solution for MSMEs to continue operating. However, technology adoption alone does not automatically guarantee the achievement of competitive advantage. This research was conducted with the aim of knowing the effect of digital technology usage on competitive advantage with organizational learning and organizational agility as mediating variables. The research method used is explanatory research, which tests proposed hypotheses to explain the relationships between variables. This research was conducted on a sample of 104 MSMEs in Surabaya that have actively adopted digital payment systems and online ordering services since the beginning of the COVID-19 pandemic in Indonesia or have been operating with such technologies for at least 3 years. This study uses Partial Least Square-Structural Equation Modeling (PLS-SEM) as a data analysis tool. The findings of this study reveal that digital technology usage has a positive effect on both organizational agility and organizational learning. Furthermore, both organizational agility and organizational learning also have a positive effect on competitive advantage. Another important finding is that digital technology usage does not have a direct effect on competitive advantage, indicating that organizational agility and organizational learning fully mediate this relationship. This implies that for MSMEs, investment in digital technology alone will not lead to competitive advantage without simultaneous development of agile and learning-oriented internal organizational capabilities.