Digital Transformation and Competitive Advantage in the Creative Industry: The Mediating Role of Organizational Agility

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FORMOSA NEWS - Gorontalo - Digital Transformation Requires Organizational Agility to Drive Competitive Advantage in Gorontalo’s Creative Industry. Investments in digital technology alone do not automatically grant a competitive edge to creative enterprises in Indonesia’s Gorontalo Province. A recent scientific study shows that digital adoption yields lasting competitive advantage only when paired with organizational agility the internal capacity to adapt quickly to changing market conditions. The study was conducted by researchers Irwan Yantu, Syarwani Canon, Raflin Hinelo, and Irawati Abdul from Universitas Negeri Gorontalo. Published in 2026, the study reveals the structural mechanism connecting technological investment to superior business performance. The findings provide vital insights for Gorontalo’s priority creative sectors such as fashion, traditional Karawo embroidery, crafts, and culinary arts as small businesses struggle to maintain market relevance in an increasingly digitalized economy.

Background and Context
Gorontalo Province possesses rich social and cultural heritage that fuels its vibrant creative economy. However, micro, small, and medium enterprises (MSMEs) in the region face significant challenges, including digital divides and shifting consumer expectations. While many local entrepreneurs adopt digital tools like social media or e-commerce platforms, these technologies are often used in isolation rather than integrated into core business strategies. At the same time, regional markets face pressure from outside competitors offering modern designs and competitive pricing. To survive, creative business operators must build dynamic internal capabilities. Researchers at Universitas Negeri Gorontalo addressed this challenge by investigating whether digital transformation directly builds competitive advantage, or whether organizational agility acts as an essential bridge.

Research Methodology
The researchers from Universitas Negeri Gorontalo conducted a quantitative study using a causal-explanatory design. Data were collected through structured surveys administered to 120 creative industry practitioners across Gorontalo Province, focusing on fashion, crafts, and culinary sub-sectors. To qualify for the study, participating enterprises had to operate for at least two years and utilize digital technologies in their operational activities. The respondents were business owners or primary decision-makers. The researchers analyzed the collected data using Partial Least Squares Structural Equation Modeling (PLS-SEM), a statistical method designed to evaluate complex relationships and indirect mediating pathways between business variables.

Key Research Findings
The empirical analysis yielded several fundamental findings regarding technology adoption and enterprise competitiveness:

• No Direct Link to Competitive Advantage: Digital transformation does not directly enhance competitive advantage ($\beta = -0.028$; $p = 0.877$). Simply adopting digital tools without altering business processes fails to yield a competitive edge.
  
• Strong Boost to Organizational Agility: Digital transformation significantly enhances organizational agility ($\beta = 0.834$; $p < 0.001$), demonstrating that technology serves as a powerful driver of organizational flexibility.
  
• Agility Drives Competitiveness: Organizational agility exerts a strong positive influence on competitive advantage ($\beta = 0.680$; $p < 0.001$).
  
• Full Mediation Role: Organizational agility fully mediates the relationship between digital transformation and competitive advantage ($\beta = 0.568$; $p = 0.001$). Digital investments lead to competitive gains only when they successfully build enterprise agility.
  
• Predictive Power: The research model explains 69.6% of the variance in organizational agility and 43.2% of the variance in competitive advantage among creative firms in Gorontalo.
  

Practical Implications and Impact

These findings hold actionable insights for business operators, policymakers, and regional development agencies. For creative entrepreneurs, software adoption and digital marketing efforts are insufficient on their own. Businesses must foster an agile workplace culture characterized by flexible team structures, modular workflows, and rapid response systems to act on market trends in real time. For government officials and public policy creators, support programs for creative MSMEs should expand beyond basic digital literacy or hardware provision. Regional assistance initiatives must combine digital adoption tools with training in adaptive management, agile operational processes, and business model innovation.

Author Profiles
Irwan Yantu, S.Pd., M.Si. – Lecturer and researcher at Universitas Negeri Gorontalo specializing in business management, competitive strategy, and creative industry development.
Dr. Syarwani Canon, M.Si. – Senior academic at Universitas Negeri Gorontalo with expertise in economics, regional development planning, and public policy.
Dr. Raflin Hinelo, M.Si. – Academic and researcher at Universitas Negeri Gorontalo focusing on human resource management and organizational behavior.
Irawati Abdul, S.E., M.Si. – Lecturer at Universitas Negeri Gorontalo specializing in operations management, entrepreneurship, and MSME development.

Source
Irwan Yantu, Syarwani Canon, Raflin Hinelo, Irawati Abdul. Digital Transformation and Competitive Advantage in the Creative Industry: The Mediating Role of Organizational Agility. Asian Journal of Management Analytics (AJMA). Vol. 5, No. 3 2026, Hal. 553-572
DOI : https://doi.org/10.55927/ajma.v5i3.16534
URL: https://journal.formosapublisher.org/index.php/ajma