Scale Development Study to Determine the Effectiveness of Digital Transformation in Businesses: An Application in Turkish Defence Industry

Year 2024, , 417 - 440, 24.05.2024

Yunus Emre Sürmen , Gülay İrak , Kadriye Burcu Öngen Bilir

https://doi.org/10.25295/fsecon.1382697

Abstract

The global attractiveness of digital transformation technologies leads many nations to increase their investments in these technologies and to achieve a stronger economic position. While this process can be considered in the context of many sectors, it has emerged more clearly in recent years, especially in the defence industry. Not only in many developed countries but also in Turkey, especially with the developments in the last 15 years, the defence industry sector can find a place among the notable countries in the world. Therefore, the use of these technologies can be expressed as a dynamic structure whose potential increases daily thanks to the added value it creates and the ecosystem it has created. However, this process is not only the application field of the private sector but also creates value in the context of the theoretical framework and concepts revealed by scientific studies. This study, it is aimed to develop a scale to determine the ‘digital transformation effectiveness’ in defence industry enterprises. In this framework, the scale and questionnaire questions were sent to companies operating in the Turkish defence industry, and 65 companies responded. The data was subjected to validity and reliability analyses using SPSS 26 and AMOS 26 programs, followed by statistical testing through exploratory factor analysis and confirmatory factor analysis. The findings showed that the scale has sufficiently high internal consistency, has explanatory and confirmatory factor validity, and also has criterion validity based on sub-dimensions.

Keywords

Digital Transformation, Defence Industry, Digital Transformation Effectiveness Scale

İşletmelerde Dijital Dönüşüm Etkinliğini Belirlemeye Yönelik Ölçek Geliştirme Çalışması: Türkiye Savunma Sanayinde Bir Uygulama

Abstract

Dijital dönüşüm teknolojilerinin küresel düzeyde olan çekiciliği, birçok ulusun bu teknolojilere dönük olarak yatırımlarını arttırmasına ve ekonomik açıdan daha güçlü bir konuma ulaşma hedefini ortaya çıkarmaktadır. Bu süreç birçok sektör bağlamında ele alınabildiği gibi son yıllarda özellikle savunma sanayi alanında da daha belirgin bir şekilde gün yüzüne çıkmıştır. Sadece gelişmiş birçok dünya ülkesi değil, aynı zamanda Türkiye'de de özellikle son 15 yılda yaşanan gelişmelerle birlikte savunma sanayi sektörü dünyada hatırı sayılır ülkeler arasında kendine yer bulabilmektedir. Dolayısıyla bahsi geçen bu teknolojilerin kullanımı, yarattığı katma değer ve oluşturmuş olduğu ekosistem sayesinde potansiyeli günden güne artan dinamik bir yapı olarak ifade edilebilir. Ancak bu süreç sadece özel sektörün uygulama sahası olarak kalmamakta, aynı zamanda bilimsel çalışmaların ortaya çıkardığı teorik çerçeve ve kavramlar bağlamında da bir değer oluşturmaktadır. Bu çalışma ile savunma sanayinde yer alan işletmelerde ‘dijital dönüşüm etkinliği’ni tespit etmeye yönelik bir ölçek geliştirilmesi amaçlanmıştır. Bu çerçevede, oluşturulan ölçek ve anket soruları Türkiye savunma sanayinde faaliyet gösteren firmalara gönderilmiş, 65 firmadan geri dönüş sağlanmıştır. Veriler, SPSS 26 ve AMOS 26 programları ile geçerlilik ve güvenilirlik analizlerine tabi tutulmuş, ardından açıklayıcı faktör analizi ve doğrulayıcı faktör analizi ile istatistiksel olarak sınanmıştır. Elde edilen bulgular ölçeğin yeterli ölçüde yüksek iç tutarlığa sahip olduğunu, açıklayıcı ve doğrulayıcı faktör geçerliliğinin bulunduğunu, aynı zamanda alt boyut temelinde kriter geçerliliğine de sahip olduğunu göstermiştir.

Keywords

Dijital Dönüşüm, Savunma Sanayi, Dijital Dönüşüm Etkinliği Ölçeği

References

• Acerbi, F., Spaltini, M., De Carolis, A., & Taisch, M. (2022, July). Developing a Roadmap Towards the Digital Transformation of Small & Medium Companies: A Case Study Analysis in the Aerospace & Defence Sector. In IFIP International Conference on Product Lifecycle Management (pp. 284-293). Cham: Springer Nature Switzerland.
• Alesiuniene, K. S., Simanaviciene, Z., Bickauske, D., Mosiiuk, S. & Belova, I. (2021). Increasing the Effectiveness of Food Supply Chain Logistics Through Digital Transformation. Independent Journal of Management & Production, 12(6), 677-701.
• Bailenson, J. N., Yee, N., Blascovich, J., Beall, A. C., Lundblad, N., & Jin, M. (2008). The use of immersive virtual reality in the learning sciences: Digital transformations of teachers, students, and social context. The Journal of the Learning Sciences, 17(1), 102-141.
• Bakir, G. (2019). İnsansiz Hava Araçlarinin Savunma Sanayi Harcamasinda Yeri ve Önemi. Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi, 6(2), 127-134.
• Başol, G. (2020). Araştırmacılar için İstatistik (2. Baskı). Ankara: Pegem Akademi.
• Bayram, N. (2017). Sosyal Bilimlerde SPSS ile Veri Analizi. Bursa: Ezgi Kitabevi.
• Berman, S. J. (2012). Digital Transformation: Opportunities to Create New Business Models. Strategy & Leadership, 40(2), 16-24.
• Bibby, L. & Dehe, B. (2018). Defining and Assessing Industry 4.0 Maturity Levels-Case of the Defence Sector. Production Planning & Control, 29(12), 1030-1043.
• Bibby, L., & Dehe, B. (2018). Defining and assessing industry 4.0 maturity levels–case of the defence sector. Production Planning & Control, 29(12), 1030-1043.
• Bouwman, H., Nikou, S., & de Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?. Telecommunications Policy, 43(9), 101828.
• Büyüközkan, G., & Güler, M. (2020). Analysis of companies’ digital maturity by hesitant fuzzy linguistic MCDM methods. Journal of Intelligent & Fuzzy Systems, 38(1), 1119-1132.
• Canbay, Ş., & Mercan, D. (2017). Savunma Harcamalarinin Ekonomik Büyüme Ve Cari İşlemler Dengesine Etkisi: Türkiye Örneği. JOEEP: Journal of Emerging Economies and Policy, 2(2), 86-104.
• Carvalho, A., Sampaio, P., Rebentisch, E. & Oehmen, J. (2020). Technology and Quality Management: A Review of Concepts and Opportunities in the Digital Transformation. International Conference on Quality Engineering and Management (ICQEM).
• Cetindamar, D., Abedin, B., & Shirahada, K. (2021). The role of employees in digital transformation: a preliminary study on how employees’ digital literacy impacts use of digital technologies. IEEE Transactions on Engineering Management.
• Chanias, S., & Hess, T. (2016). Understanding digital transformation strategy formation: Insights from Europe’s automotive industry.
• Chatterjee, S. & Mariani, M. (2022). Exploring the Influence of Exploitative and Explorative Digital Transformation on Organization Flexibility and Competitiveness. IEEE Transactions on Engineering Management.
• Ciuriak, D. & Ptashkina, M. (2018). The Digital Transformation and the Transformation of International Trade. RTA Exchange. Geneva: International Centre for Trade and Sustainable Development (ICTSD) and the Inter-American Development Bank (IDB).
• Dapp, T. F. (2017). Fintech: The Digital Transformation in the Financial Sector. Sustainability in a Digital World: New Opportunities Through New Technologies (189-199).
• Defencenews, https://people.defensenews.com/top-100/, (04.01.2024)
• Do, T. D., Pham, H. A. T., Thalassinos, E. I. & Le, H. A. (2022). The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks. Journal of Risk and Financial Management, 15(1), 21.
• Do, T. D., Pham, H. A. T., Thalassinos, E. I., & Le, H. A. (2022). The impact of digital transformation on performance: Evidence from Vietnamese commercial banks. Journal of risk and financial management, 15(1), 21.
• El Fertasi, N. (2019). Why Digital Ecosystems of Civil-Military Partnerships Are a Game Changer for International Security and Defence. Information & Security, 42, 33-47.
• Enrique, D. V., Lerman, L. V., de Sousa, P. R., Benitez, G. B., Santos, F. M. B. C. & Frank, A. G. (2022). Being Digital and Flexible to Navigate the Storm: How Digital Transformation Enhances Supply Chain Flexibility in Turbulent Environments. International Journal of Production Economics, 250, 108668.
• Erhel, S. & Jamet, E. (2013). Digital Game-Based Learning: Impact of Instructions and Feedback on Motivation and Learning Effectiveness. Computers & Education, 67, 156-167.
• ESD, https://euro-sd.com/2023/10/news/34724/turkish-defence-spending-boost/, (04.01.2024)
• Esmeroğlu, Y. C. (2017). Üretime dayalı büyümenin Türkiye ekonomisine etkileri (Master's thesis, Sosyal Bilimler Enstitüsü).
• Fachrunnisa, O., Adhiatma, A., Lukman, N. & Majid, M. N. A. (2020). Towards SMEs’ Digital Transformation: The Role of Agile Leadership and Strategic Flexibility an Empirical Study from Indonesia and Malaysia. Journal of Small Business Strategy, 30(3).
• Fanni, R., & Giancotti, F. (2023). Ethical artificial intelligence in the Italian defence: A case study. Digital Society, 2(2), 29.
• Gastaldi, L. & Corso, M. (2012). Smart Healthcare Digitalization: Using ICT to Effectively Balance Exploration and Exploitation Within Hospitals. International Journal of Engineering Business Management, 4, 9.
• Gürbüz, S. (2019). AMOS ile Yapısal Eşitlik Modellemesi. Ankara: Seçkin Yayıncılık.
• Gürsakal S. (2019). Sosyal Bilimlerde SPSS Uygulamalı Çok Değişkenli İstatistiksel Analiz Teknikleri. Bursa: Dora.
• Harteis, C. (Ed.). (2017). The Impact of Digitalization in the Workplace: An Educational View (Vol. 21). Springer.
• Henriette, E., Feki, M. & Boughzala, I. (2015). The Shape of Digital Transformation: A Systematic Literature Review.
• Hess, T., Matt, C., Benlian, A. & Wiesböck, F. (2020). Options for Formulating a Digital Transformation Strategy. Strategic Information Management (151-173). Routledge.
• Hilbert, M. (2022). Digital Technology and Social Change: The Digital Transformation of Society from a Historical Perspective. Dialogues in Clinical Neuroscience.
• Hinings, B., Gegenhuber, T. & Greenwood, R. (2018). Digital Innovation and Transformation: An Institutional Perspective. Information and Organization, 28(1), 52-61.
• Ifenthaler, D. & Egloffstein, M. (2020). Development and Implementation of a Maturity Model of Digital Transformation. TechTrends, 64(2), 302-309.
• ITA, https://www.trade.gov/aerospace-defense-market-resource-guide-turkey, (03.01.2024)
• İMMİB, https://immib.org.tr/tr/yuksek-teknolojili-urun-ihracati-ve-katma-degerli-uretim, (03.01.2024)
• Kamiloğlu Esmeroğlu, B.(2017) Savunma sanayi sektörünün cari dengesinin Türkiye ekonomisine etkileri (Master's thesis, Sosyal Bilimler Enstitüsü).
• Karakuş, A. (2006). Türk Savunma Sanayiinin Gelişimi, Türkiye’nin Savunma Harcamalarının Boyutları ve Bazı NATO Ülkeleri ile Karşılaştırmalı Ekonometrik Analizi. Yayınlanmamış Yüksek Lisans Tezi, Kara Harp Okulu Savunma Bilimleri Enstitüsü, Ankara.
• Karakuş, G. & Gönen, İ. (2022). Askeri Alanda Endüstri 4.0 Uygulamaları. Avrupa Bilim ve Teknoloji Dergisi, (43), 104-109.
• Kim, D. Y., Kumar, V. & Kumar, U. (2012). Relationship Between Quality Management Practices and Innovation. Journal of Operations Management, 30(4), 295-315.
• Kimberly, P., Grima, S., & Özen, E. (2022). Perceived Effectiveness of Digital Transformation and InsurTech Use in Malta: A Study in the Context of the European Union’s Green Deal. Big Data: A Game Changer for Insurance Industry (239-263). Emerald Publishing Limited.
• Kljajić Borštnar, M., & Pucihar, A. (2021). Multi-attribute assessment of digital maturity of SMEs. Electronics, 10(8), 885.
• Köseoğlu, A. M. (2010). Milli Savunma Sanayinde Yeniden Yapılanma ve Sosyal Politikalara Etkisi. Doktora Tezi, Dokuz Eylül Üniversitesi, Sosyal Bilimler Enstitüsü.
• Kuntsman, A., & Arenkov, I. A. (2019). Method for Assessing Effectiveness of Company Digital Transformation: Integrated Approach. IBIMA Business Review, 2019, 24-09.
• Lee, C. H., Wang, D., Desouza, K. C., & Evans, R. (2021). Digital transformation and the new normal in China: how can enterprises use digital technologies to respond to COVID-19?. Sustainability, 13(18), 10195.
• Lele, A. (2019). Disruptive Technologies for the Militaries and Security. Singapore: Springer.
• Li, C., Feng, W. X., Han, S., Gupta, S. & Kamble, S. (2022). Digital Adaptive Governance, Digital Transformation, and Service Quality in Logistics Enterprises. Journal of Global Information Management (JGIM), 30(1), 1-26.
• Liu, K. P. & Chiu, W. (2021). Supply Chain 4.0: The Impact of Supply Chain Digitalization and Integration on Firm Performance. Asian Journal of Business Ethics, 10(2), 371-389.
• Lucas Jr., H., Agarwal, R., Clemons, E. K., El Sawy, O. A. & Weber, B. (2013). Impactful Research on Transformational Information Technology: An Opportunity to Inform New Audiences. Mis Quarterly, 371-382.
• Maiti, M. & Kayal, P. (2017). Digitization: Its Impact on Economic Development & Trade. Asian Economic and Financial Review, 7(6), 541.
• Małkowska, A., Urbaniec, M. & Kosała, M. (2021). The Impact of Digital Transformation on European Countries: Insights from a Comparative Analysis. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(2), 325-355.
• Martínez-Caro, E., Cegarra-Navarro, J. G., & Alfonso-Ruiz, F. J. (2020). Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change, 154, 119962.
• Masoud, R. & Basahel, S. (2023). The Effects of Digital Transformation on Firm Performance: The Role of Customer Experience and IT Innovation. Digital, 3(2), 109-126.
• Matalamäki, M. J. & Joensuu-Salo, S. (2022). Digitalization and Strategic Flexibility-A Recipe for Business Growth. Journal of Small Business and Enterprise Development, 29(3), 380-401.
• Matt, C., Hess, T. & Benlian, A. (2015). Digital Transformation Strategies. Business & Information Systems Engineering, 57, 339-343.
• Menshikova, M. A., Piunova, Y. V. & Makhova, M. N. (2019). Digital Transformation in the Quality Management System. 2019 International Conference “Quality Management, Transport and Information Security, Information Technologies” (IT&QM&IS) (42-46).
• Mergel, I., Edelmann, N. & Haug, N. (2019). Defining Digital Transformation: Results from Expert Interviews. Government Information Quarterly, 36(4), 101385.
• Nadkarni, S. & Prügl, R. (2021). Digital Transformation: A Review, Synthesis and Opportunities for Future Research. Management Review Quarterly, 71, 233-341.
• Nambisan, S., Lyytinen, K., Majchrzak, A. & Song, M. (2017). Digital Innovation Management. MIS Quarterly, 41(1), 223-238.
• NTV. https://www.ntv.com.tr/ekonomi/getir-300-milyon-dolarlik-yeni-bir-yatirim-aldi,GLjLuQegpEuQflZt2C4zoQ (01.12.2023)
• Nwankpa, J. K. & Roumani, Y. (2016). IT Capability and Digital Transformation: A Firm Performance Perspective.
• Piccinini, E., Hanelt, A., Gregory, R. & Kolbe, L. (2015). Transforming Industrial Business: The Impact of Digital Transformation on Automotive Organizations.
• Ponsignon, F., Kleinhans, S. & Bressolles, G. (2019). The Contribution of Quality Management to an Organisation’s Digital Transformation: A Qualitative Study. Total Quality Management & Business Excellence, 30(sup1), S17-S34.
• Prem, E. (2015). A Digital Transformation Business Model for Innovation. ISPIM Innovation Symposium (1).
• Rachinger, M., Rauter, R., Müller, C., Vorraber, W. & Schirgi, E. (2018). Digitalization And Its Influence on Business Model Innovation. Journal of Manufacturing Technology Management, 30(8), 1143-1160.
• Reinartz, W., Wiegand, N. & Imschloss, M. (2019). The Impact of Digital Transformation on The Retailing Value Chain. International Journal of Research in Marketing, 36(3), 350-366.
• Reuters, https://www.reuters.com/business/aerospace-defense/exclusive-after-ukraine-whole-world-is-customer-turkish-drone-maker-says-2022-05-30/, (04.01.2024)
• Sandu, I. S. & Voiku, I. P. (2019). Evaluation of the Effectiveness of the Digital Transformation of Crop Production of the Pskov Region. SHS Web of Conferences, 62, 08005).
• Sassanelli, C. & Terzi, S. (2022). The D-BEST Reference Model: A Flexible and Sustainable Support for the Digital Transformation of Small and Medium Enterprises. Global Journal of Flexible Systems Management, 23(3), 345-370.
• Savunma Sanayi Başkanlığı. Stratejik Plan 2017-2021. http://www.sp.gov.tr/upload/xSPStratejikPlan/files/5cNrk+SSM_STRATEJIK_PLAN_2017-2021.pdf (13.01.2023)
• Schuchmann, D. & Seufert, S. (2015). Corporate Learning in Times of Digital Transformation: A Conceptual Framework and Service Portfolio for the Learning Function in Banking Organisations. International Journal of Advanced Corporate Learning, 8(1).
• Schuh, G., Anderl, R., Dumitrescu, R., Krüger, A., & ten Hompel, M. (2020). Der Industrie 4.0 Maturity Index in der betrieblichen Anwendung. Aktuelle Herausforderungen, Fallbeispiele und Entwicklungstrends. acatech-Studienreihe.
• Schwab, K. (2016). The Future of Jobs: Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution. World Economic Forum (1-32).
• Schwertner, K. (2017). Digital Transformation of Business. Trakia Journal of Sciences, 15(1), 388-393.
• Sefer, U. Ç. A. K., Aytekin, A. G., & Kuvat, Ö. (2018). ARDL Modeli ile Türkiye’de Otomotiv İhracatı-Büyüme İlişkisi. Anemon Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, 6(ICEESS’18), 201-209.
• Segonds, F. (2018). Design By Additive Manufacturing: An Application in Aeronautics and Defence. Virtual and Physical Prototyping, 13(4), 237-245.
• Sen, K., Prybutok, G. & Prybutok, V. (2022). The Use of Digital Technology for Social Wellbeing Reduces Social Isolation in Older Adults: A Systematic Review. SSM-Population Health, 17, 101020.
• Shaughnessy, H. (2018). Creating Digital Transformation: Strategies and Steps. Strategy & Leadership, 46(2), 19-25.
• Simetinger, F., & Zhang, Z. (2020). Deriving secondary traits of industry 4.0: A comparative analysis of significant maturity models. Systems Research and Behavioral Science, 37(4), 663-678.
• Singh, S., Sharma, M. & Dhir, S. (2021). Modeling the Effects of Digital Transformation in Indian Manufacturing Industry. Technology in Society, 67, 101763.
• Şimşek, Ö. F. (2007). Yapısal Eşitlik Modellemesine Giriş Temel İlkeler ve LISREL Uygulamaları. Ankara: Ekinoks Yayıncılık.
• Tabachnick B. G. & Fidell, L. S. (2001). Using multivariate statistics. 4th Ed. MA: Allyn and Bacon.
• Tavşancıl, E. (2019). Tutumların Ölçülmesi ve SPSS ile Veri Analizi (6. Baskı). Ankara: Nobel.
• Thekkoote, R. (2022). Enabler Toward Successful Implementation of Quality 4.0 in Digital Transformation Era: A Comprehensive Review and Future Research Agenda. International Journal of Quality & Reliability Management, 39(6), 1368-1384.
• TİM, https://tim.org.tr/files/downloads/Ihracat1000/2022/ILK%201000%202022%20TR%20(1).pdf, (03.01.2024)
• Ting, C. Y. T. C. Y., Kuen, C. M. K. C. M., Chung-Min, W. C. M. W., & Yu, W. H. Y. W. H. (2022). Assessing the digital transformation maturity of motherboard industry: A fuzzy AHP approach. BOHR International Journal of Finance and Market Research, 1(1), 68-81.
• Trieu, T. V. H., & Pavelková, D. (2020). Digital transformation and its influence on performance of creative industry companies. ICFE 2020, 85.
• TRT Haber. https://www.trthaber.com/haber/gundem/turk-ihalarinin-2005ten-bugune-olan-gelisim-seruveni-742802.html (05.02.2023)
• Tsou, H. T. & Chen, J. S. (2023). How Does Digital Technology Usage Benefit Firm Performance? Digital Transformation Strategy and Organisational Innovation as Mediators. Technology Analysis & Strategic Management, 35(9), 1114-1127.
• Tuktarova, L. R. (2022). Managing Flexible Systems in Digital Transformation. Proceedings of the International Scientific Conference “Smart Nations: Global Trends in the Digital Economy” (Vol. 1) (270-276). Cham: Springer International Publishing.
• Türk Savunma Sanayii Ürünler Kataloğu. https://www.ssb.gov.tr/Images/Uploads/files/SSB_BASILI_TR_2022_WEB2_2.pdf (04.11.2022).
• Ülger, F. (1997). Türk Savunma Sanayii. Türkiye Odalar ve Borsalar Birliği.
• Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N. & Haenlein, M. (2021). Digital Transformation: A Multidisciplinary Reflection and Research Agenda. Journal of Business Research, 122, 889-901.
• Westerman, G., Bonnet, D., & McAfee, A. (2014). The nine elements of digital transformation. MIT Sloan Management Review, 55(3), 1-6.
• Wibowo, A., & Taufik, J. (2017). Developing a self-assessment model of risk management maturity for client organizations of public construction projects: Indonesian context. Procedia engineering, 171, 274-281.
• Wikipedia, https://tr.wikipedia.org/wiki/Savunma_sanayisi, Access Date: 20.06.2023
• Worldbank, https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS?locations=TR
• Worldbank, https://data.worldbank.org/indicator/MS.MIL.XPRT.KD?locations=TR&most_recent_value_desc=true
• Yu, J., Wang, J., & Moon, T. (2022). Influence of Digital Transformation Capability on Operational Performance. Sustainability, 14(13), 7909.
• Zhai, H., Yang, M., & Chan, K. C. (2022). Does digital transformation enhance a firm's performance? Evidence from China. Technology in Society, 68, 101841.
• Zhong, X. & Ren, G. (2023). Independent and Joint Effects of CSR and CSI on the Effectiveness of Digital Transformation for Transition Economy Firms. Journal of Business Research, 156, 113478.
• Ziylan, A. (2001). Savunma Nereden Nereye-Türkiye’de Savunma Sanayii Tarihçesi. Ulusal Strateji Dergisi, 5.