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Effects of Firm-Level Entrepreneurship Orientation on Digital Transformation in SMEs: The Moderating Role of Strategic Agility

  • Mir Shahid Satar ORCID logo EMAIL logo , Safiya Mukhtar Alshibani ORCID logo and Ghadah Alarifi
Published/Copyright: March 5, 2024

Abstract

The study investigates the effects of firm-level entrepreneurship orientation (EO) dimensions of innovativeness, risk-taking, and proactiveness on digital transformation (DT) in small and medium enterprises (SMEs) while considering their interactions with the organization’s strategic agility. The study hypothesizes that all three firm-level EO dimensions are positively associated with DT within SMEs and that strategic agility positively moderates this effect. The study’s data came from a survey of 122 Saudi SMEs, where digitalization has recently emerged as a potential approach to transforming SMEs. The data analysis results from Smart PLS 3.0 provide complete support for the hypotheses. The study is one of the first to investigate the firm-level EO in the context of DT and provides implications for strategizing the SME’s DT by capitalizing on the firm’s EO intensity. As a result, the study contributes to entrepreneurship and management research vis-à-vis the current digitalization discourse.


Corresponding author: Mir Shahid Satar, College of Administrative and Financial Sciences, 393453 Saudi Electronic University , Abu Bakr Street, Riyadh, 11673, Saudi Arabia, E-mail:

Award Identifier / Grant number: PNURSP2023R395

Acknowledgments

Princess Nourah bint Abdulrahman University Researchers Supporting Project number (PNURSP2023R395), Princess Nourah bint Abdulrahman University, Riyadh, Saudi Arabia.

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Received: 2023-07-07
Accepted: 2024-02-06
Published Online: 2024-03-05

© 2024 Walter de Gruyter GmbH, Berlin/Boston

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