Moderating Role of IT Adoption and Mechanism of Dynamic Capabilities on Indonesian Pharmaceutical Firms Performance

Abstract

In 'today's contemporary world, multiple factors determine any organization's productivity in several contexts, but what are those factors and through which underlying mechanisms those factors affect the organizational productivity is a question of real concern. On the other hand, organizations are encouraged to adopt the technology to survive in the economies' ontogeny. It is a fact that businesses not embracing the philosophy and practice of application of information technology will be at a competitive disadvantage. The current study was established to examine the direct as well as indirect impact of entrepreneurial orientation, total quality management, and business innovation on organizational productivity in the presence of dynamic capabilities as a mediator. Further, the interactive effect of IT adoption with dynamic capabilities on organizational productivity was investigated. Data was collected from the managers and owners of the pharmaceutical companies of Indonesia. SmatPLS 3 was used to study the measurement and structural model. Results revealed that all direct and indirect associations are positive and significant. Finally, the current study offers some valuable insights for scholars and practitioners.