A Conceptual Model to Improve SME's Digital Innovation Capability: The Role of Digital Adoption and Entrepreneurial Orientation

This research aims to develop a conceptual model to increase the digital innovation capability of SMEs in the digital economy era through the role of digital adoption, which is driven by behaviour support for change, digital self-efficacy and strengthened by entrepreneurial orientation. In the digital economy era, SMEs must be able to change towards digitalization in line with current developments. Therefore, behaviour support for change and digital self-efficacy are needed. Behaviour supporting change is behaviour that wants to support change. Digital self-efficacy is the belief in the ability to complete specific tasks, in this case, digitalization. These two things are essential in encouraging digital adoption in SMEs. Digital Adoption is the ability of SMEs to adopt/use currently existing digital technology for business purposes. The ability to adopt digital technology, which is strengthened by entrepreneurial orientation, thought to be a trigger to increase the digital innovation capability of SMEs.