Effect of Innovation Adoption, Digital Competences and Digital Literacy on Effective Management Information System: Moderating Role of Organizational Support

Abstract

The current manufacturing era demands small and medium sectors to enrich and imbue digitalization at each node of supply, production, services, and operations to achieve the desired performance-related outcomes. Chinese manufacturing industries emphasize adopting and implementing the latest digitalized practices to reduce costs and increase operational efficiency and effectiveness. This study incorporated the role of innovation adoption, digital competencies, and digital literacy with the moderation effect of organizational support to explain the phenomenon of the effectiveness of management information systems. The data was collected from SME firms in China and 305 responses were analyzed on Smart-PLS. The study revealed that innovation adoption had no impact on the effectiveness of management information systems; however, competencies and digital literacy have a significant relationship with the effectiveness of management information systems. Further, no moderation effect of organizational support has been observed between innovation adoption, digital literacy and the effectiveness of management information systems. This research suggests the Chinese SME sector should increase the awareness of digitalization among employees and the general public to shift from existing practices on emerging paradigms. The study proposes to adopt and implement on a continuous basis to attain a competitive advantage. Transformation can only be placed in the presence of a suitable plan to adopt and implement digitalization. The study also records practical implications and future research avenues