Building Digital Competence for Better Employee Performance: The Roles of Technology Readiness and Technology Self-Efficacy in Indonesia’s Payment Switching Industry
DOI:
https://doi.org/10.59944/postaxial.v4i3.1458Keywords:
Technology Readiness, Technology Self-Efficacy, Digital Competence, Employee Performance, Payment Switching Companies.Abstract
This study aims to examine the influence of Technology Readiness and Technology Self-Efficacy on Employee Performance, with Digital Competence serving as a mediating variable in payment switching companies in Indonesia. The study is motivated by the rapid digital transformation in the payment systems industry, which requires organizations to develop a workforce with adequate technological readiness, confidence in using technology, and digital competence to enhance employee performance. The research framework is grounded in Technology Readiness Theory, Social Cognitive Theory, and Human Capital Theory. A quantitative research approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Data were collected from 175 employees working at four payment switching companies in Indonesia and analyzed using SmartPLS 4. The findings reveal that Technology Readiness and Technology Self-Efficacy have positive and significant effects on both Digital Competence and Employee Performance. Furthermore, Digital Competence has a positive and significant effect on Employee Performance and is found to mediate the relationships between Technology Readiness and Employee Performance, as well as between Technology Self-Efficacy and Employee Performance. These findings suggest that enhancing employees' technological readiness, confidence in using technology, and digital competence plays a crucial role in improving employee performance in Indonesia's payment switching industry.
References
Abdul Hamid, R. (2022). The Role of Employees’ Technology Readiness, Job Meaningfulness and Proactive Personality in Adaptive Performance. Sustainability (Switzerland), 14(23). https://doi.org/10.3390/su142315696
Annisa, S., Siahaan, E., & Lumbanraja, P. (2024). Impact of digital transformation on banking employee performance with self-efficacy as a mediator. Problems and Perspectives in Management, 22(4), 523–531. https://doi.org/10.21511/ppm.22(4).2024.39
Arnaud, J., São Mamede, H., & Branco, F. (2025). The relationship between digital transformation and digital literacy - an explanatory model: Systematic literature review. F1000Research, 13. https://doi.org/10.12688/f1000research.146991.2
Ben Ghrbeia, S., & Alzubi, A. (2024). Building Micro-Foundations for Digital Transformation: A Moderated Mediation Model of the Interplay between Digital Literacy and Digital Transformation. Sustainability (Switzerland) , 16(9). https://doi.org/10.3390/su16093749
Blanka, C., Krumay, B., & Rueckel, D. C. (2022). The interplay of digital transformation and employee competency: A design science approach. Technological Forecasting and Social Change, 178, 121575. https://doi.org/10.1016/j.techfore.2022.121575
Blut, M., & Wang, C. (2020). Technology readiness: a meta-analysis of conceptualizations of the construct and its impact on technology usage. Journal of the Academy of Marketing Science, 48(4), 649–669. https://doi.org/10.1007/s11747-019-00680-8
Chen, X., Chang-Richards, A., Ling, F. Y. Y., Yiu, K. T. W., Pelosi, A., & Yang, N. (2024). Effects of digital readiness on digital competence of AEC companies: A dual-stage PLS-SEM-ANN analysis. Building Research & Information, 52(8), 905–922. https://doi.org/10.1080/09613218.2024.2343825
Compeau, D. R., & Higgins, C. A. (1995). Computer self-efficacy: Development of a measure and initial test. MIS Quarterly, 19(2), 189–211. https://doi.org/10.2307/249688
Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.
Dai, W. (2023). An empirical study on English preservice teachers' digital competence regarding ICT self-efficacy, collegial collaboration and infrastructural support. Heliyon, 9(9), e19538. https://doi.org/10.1016/j.heliyon.2023.e19538
Farah, I., Suseno, B. D., & Suadma, U. (2023). Support the Performance of Organizations. Jurnal Ekonomi Modernisasi, 19(1), 41–57.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications.
Hasani, S. (2024). Innovative behavior as a mediator: Self-efficacy, supportive environment and creativity in employee performance. Journal on Innovation and Sustainability RISUS, 15(4), 90–109. https://doi.org/10.23925/2179-3565.2024v15i4p90-109
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Höyng, M., & Lau, A. (2023). Being ready for digital transformation: How to enhance employees' intentional digital readiness. Computers in Human Behavior Reports, 11, 100314. https://doi.org/10.1016/j.chbr.2023.100314
Ingsih, K., Astuti, S. D., & Riyanto, F. (2024). The role of digital competence in improving service quality and employee performance. SA Journal of Human Resource Management, 22, a2689. https://doi.org/10.4102/sajhrm.v22i0.2689
Khoza, T. K., Mabitsela, T., & Nel, P. (2024). Technology readiness, technology acceptance, and work engagement: A mediational analysis. SA Journal of Industrial Psychology, 50, Article a2131. https://doi.org/10.4102/sajip.v50i0.2131
Koopmans, L., Bernaards, C. M., Hildebrandt, V. H., de Vet, H. C. W., & van der Beek, A. J. (2014). Construct validity of the Individual Work Performance Questionnaire. Journal of Occupational and Environmental Medicine, 56(3), 331–337. https://doi.org/10.1097/JOM.0000000000000113
Kumi, E., Osei, H. V., Asumah, S., & Yeboah, A. (2024). The impact of technology readiness and adapting behaviours in the workplace: a mediating effect of career adaptability. Future Business Journal, 10(1), 1–19. https://doi.org/10.1186/s43093-024-00355-z
Lastiati, A. (2026). The Human Side of Accounting: Akuntansi perilaku, sebuah referensi. Gramedia Pustaka Utama. ISBN: 978-602-06-8964-7
Martínez-Bravo, M. C., Chalezquer, C. S., & Serrano-Puche, J. (2022). Dimensions of Digital Literacy in the 21st Century Competency Frameworks. Sustainability (Switzerland), 14(3). https://doi.org/10.3390/su14031867
Nawawi, S., Ingsih, K., Riyanto, F., Sari, R. A. A. R. P., & Sartika, M. (2026). Does digital competence improve employee performance? The role of smart digital services mediation in the public sector. Jurnal Penelitian Ekonomi dan Bisnis, 11(1), 77–89. https://doi.org/10.33633/jpeb.v11i1.15497
Parasuraman, A., & Colby, C. L. (2015). An updated and streamlined Technology Readiness Index: TRI 2.0. Journal of Service Research, 18(1), 59–74. https://doi.org/10.1177/1094670514539730
Sarstedt, M., Ringle, C. M., Cheah, J.-H., Ting, H., Moisescu, O. I., & Radomir, L. (2022). Structural model robustness checks in PLS-SEM. Tourism Economics, 28(5), 1274–1294. https://doi.org/10.1177/13548166211034913
Sudaryanto, M. R., Hendrawan, M. A., & Andrian, T. (2023). The Effect of Technology Readiness, Digital Competence, Perceived Usefulness, and Ease of Use on Accounting Students Artificial Intelligence Technology Adoption. E3S Web of Conferences, 388. https://doi.org/10.1051/e3sconf/202338804055
Sulaiman., Saleh, C., Muluk, M. R. K., & Setyowati, E. (2025). Digital Competence and Employee Performance: The Mediating Role of Work Motivation in the Public Sector. Journal of Cultural Analysis and Social Change, 10(95), 580–592. https://doi.org/10.64753/jcasc.v10i2.1646
Theres, C., & Strohmeier, S. (2024). Consolidating the theoretical foundations of digital human resource management acceptance and use research: A meta-analytic validation of UTAUT. Management Review Quarterly, 74(4), 2683–2715. https://doi.org/10.1007/s11301-023-00367-z
Tomczak, M. T., Ziemiański, P., & Gawrycka, M. (2023). Do the young employees perceive themselves as digitally competent and does it matter? Central European Management Journal, 31(4), 522–534. https://doi.org/10.1108/CEMJ-04-2022-022
Ulfert-Blank, A. S., & Schmidt, I. (2022). Assessing digital self-efficacy: Review and scale development. Computers and Education, 191(August). https://doi.org/10.1016/j.compedu.2022.104626
Vuorikari, R., Punie, Y., Carretero Gomez, S., & Van den Brande, G. (2016). DigComp 2.0: The digital competence framework for citizens. Update phase 1: The conceptual reference model (EUR 27948 EN). Publications Office of the European Union. https://doi.org/10.2791/11517
Xicang, Z., Bilal, M., Jiying, W., Sohu, J. M., Akhtar, S., & Itzaz Ul Hassan, M. (2024). Unraveling the Factors Influencing Digital Transformation and Technology Adoption in High-Tech Firms: The Moderating Role of Digital Literacy. SAGE Open, 14(4). https://doi.org/10.1177/21582440241300189
