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

Author

Listed:
  • Satar Mir Shahid

    (College of Administrative and Financial Sciences, 393453 Saudi Electronic University , Abu Bakr Street, Riyadh, 11673, Saudi Arabia)

  • Alshibani Safiya Mukhtar

    (112893 Department of Business Administration, College of Business Administration, Princess Nourah bint Abdulrahman University , P.O. Box 84428, Riyadh, 11671, Saudi Arabia)

  • Alarifi Ghadah

    (112893 Department of Business Administration, College of Business Administration, Princess Nourah bint Abdulrahman University , P.O. Box 84428, Riyadh, 11671, Saudi Arabia)

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.

Suggested Citation

  • Satar Mir Shahid & Alshibani Safiya Mukhtar & Alarifi Ghadah, 2025. "Effects of Firm-Level Entrepreneurship Orientation on Digital Transformation in SMEs: The Moderating Role of Strategic Agility," Entrepreneurship Research Journal, De Gruyter, vol. 15(1), pages 91-124.
    • Handle: RePEc:bpj:erjour:v:15:y:2025:i:1:p:91-124:n:1005
    DOI: 10.1515/erj-2023-0267
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