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Unraveling the Nexus between Entrepreneurial Orientation, Effect Reasoning, and Digital Transformation in Enterprises

Author

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  • Hui Ding

    (Centre of Postgraduate Studies, Asia Metropolitan University (AMU), Malaysia.)

Abstract

This study investigates the intricate relationship between entrepreneurial orientation (EO), effect reasoning (ER), and digital transformation (DT) in enterprises. Drawing on established literature, it hypothesizes that EO positively influences ER formation, which, in turn, fosters DT. The research employs a quantitative approach, utilizing regression analysis to test the proposed hypotheses. Findings indicate a direct positive relationship between EO and DT, suggesting that enterprises with higher EO are more inclined towards digital initiatives. Additionally, the study reveals that EO promotes the formation of different patterns of ER, including experimental, flexible, pre-commitment, and tolerable loss reasoning. Importantly, ER emerges as a significant predictor of DT, mediating the relationship between EO and DT. These findings underscore the pivotal role of ER as a cognitive mechanism driving digital transformation efforts in enterprises. The study contributes to the literature by providing empirical evidence of the interplay between EO, ER, and DT, offering insights for practitioners seeking to navigate the complexities of digital transformation.

Suggested Citation

  • Hui Ding, 2024. "Unraveling the Nexus between Entrepreneurial Orientation, Effect Reasoning, and Digital Transformation in Enterprises," International Journal of Science and Business, IJSAB International, vol. 39(1), pages 143-161.
    • Handle: RePEc:aif:journl:v:39:y:2024:i:1:p:143-161
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    References listed on IDEAS

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