Adoption of digital innovation for resource efficiency and sustainability in the metal industry

Digital transformation (DT) enables small and medium enterprises (SMEs) in the metal industry to enhance their resource efficiency and sustainability in a volatile and competitive market. However, SMEs have a low rate of adopting digital innovations (DIs). The adoption of DIs by SMEs is influenced by different determinants that should be discussed. The objective here is to assess the determinants of SMEs’ intention to adopt DIs (IADs) in the metal industry, through an extended version of the unified theory of acceptance and use of technology (UTAUT) model. The partial least squares structural equation modeling (PLS-SEM) is applied to test the hypotheses on a sample of 205 SMEs. The results indicated that performance expectancy, effort expectancy, absorptive capacity, and digital capability have positive and significant effects on IADs, explaining 52.7 % of its variance. Further, digital strategy moderates the effect of digital capability on IADs. The findings here contribute to the literature on adoption of DIs by SMEs, while also providing practical implications for policymakers and practitioners. [Display omitted] •The paper examines the determinants of SMEs' intention to adopt digital innovations using a modified UTAUT model.•Digital capability, absorptive capacity, effort expectancy, and performance expectancy influence the adoption of digital innovations, explaining 52.7 % of its variance.•Digital strategy enhances the impact of digital capability on the digital innovation adoption.