Readiness Analysis for Digital Transformation among Medium-Sized Contractors Using the TOE Framework and PLS-SEM
DOI:
https://doi.org/10.51903/q08vm388Keywords:
methodological prototype, digital transformation readiness, medium-sized contractors, TOE framework, PLS-SEMAbstract
This study assesses the effects of technological, organizational, and environmental factors on contractors’ digital transformation readiness by integrating the Technology–Organization–Environment (TOE) framework with Partial Least Squares Structural Equation Modeling (PLS-SEM). The proposed model comprises four latent constructs and 20 reflective indicators measured using a five-point Likert scale. As an analytical prototype, the study employs a synthetic dataset of 210 observations to evaluate the measurement and structural models. The results indicate that all indicators meet the outer-loading criterion, while Cronbach’s Alpha, Composite Reliability, and Average Variance Extracted confirm satisfactory reliability and convergent validity. Discriminant validity is also established through the Fornell–Larcker criterion and the Heterotrait–Monotrait Ratio. The model explains 51.9% of the variance in digital transformation readiness and demonstrates positive predictive relevance. Organizational factors exert the strongest effect, followed by technological and environmental factors. These findings suggest that top-management support, workforce competence, innovation culture, financial readiness, and a clear digital strategy constitute the principal foundations of transformation.
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Copyright (c) 2026 Silvia Faradila, Wreda Agung Kuncoro, Rachmat Setyawan, Haikal Nur Rachmanrachim Archaqie Archaqie (Author)
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