TOE, digital transformation, and sustainable performance in modern Coffee Shops

Abstract

This study aims to analyze the influence of Technology, Organization, and Environment (TOE) on Sustainable Organizational Performance (SOP), with Digital Transformation (DT) acting as a mediating variable, in modern coffee shops in Indonesia. This study employs a quantitative approach using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method and includes 141 respondents, comprising modern coffee shop owners and managers. The results indicate that all dimensions of TOE have a positive and significant influence on DT and SOP. Furthermore, DT was found to have a positive effect on SOP and acts as a mediating variable in the relationship between TOE and SOP. These findings confirm that digital transformation serves as a key mechanism for optimizing technological, organizational, and environmental resources to achieve sustainable organizational performance. Theoretically, this study expands the application of the TOE model within the context of organizational sustainability. Practically, this study offers implications for coffee shop business owners in designing digital transformation strategies to enhance competitiveness and business sustainability.