IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v159y2023ics0148296323001133.html
   My bibliography  Save this article

The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes

Author

Listed:
  • Zahoor, Nadia
  • Zopiatis, Anastasios
  • Adomako, Samuel
  • Lamprinakos, Grigorios

Abstract

Research often illustrates the importance of digital transformation for small and medium-sized enterprises (SMEs), particularly during external disruptions. However, little attention has been devoted to how SMEs’ digital transformation occurs. Employing a micro-foundations perspective, this study investigates the effect of managers’ digital literacy (MDL) on SMEs’ digital transformation. We test a moderated mediation model using survey data from 158 SMEs operating in the United Arab Emirates. Our findings suggest that MDL impacts digital transformation through the usage of digital technologies. Moreover, the relationship between MDL and the usage of digital technologies is further moderated by managerial attributes (i.e., gender, education, and age). Theoretical and practical implications are discussed.

Suggested Citation

  • Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    • Handle: RePEc:eee:jbrese:v:159:y:2023:i:c:s0148296323001133
    DOI: 10.1016/j.jbusres.2023.113755
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323001133
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.113755?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Teppo Felin & Nicolai J. Foss & Koen H. Heimeriks & Tammy L. Madsen, 2012. "Microfoundations of Routines and Capabilities: Individuals, Processes, and Structure," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1351-1374, December.
    2. Lee, Craig & Hallak, Rob, 2018. "Investigating the moderating role of education on a structural model of restaurant performance using multi-group PLS-SEM analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 298-305.
    3. Juan Alcácer & John Cantwell & Lucia Piscitello, 2016. "Internationalization in the information age: A new era for places, firms, and international business networks?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(5), pages 499-512, June.
    4. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    5. Venugopal, Aparna & Krishnan, T.N. & Upadhyayula, Rajesh Srinivas & Kumar, Manish, 2020. "Finding the microfoundations of organizational ambidexterity - Demystifying the role of top management behavioural integration," Journal of Business Research, Elsevier, vol. 106(C), pages 1-11.
    6. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    7. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    8. Troise, Ciro & Corvello, Vincenzo & Ghobadian, Abby & O'Regan, Nicholas, 2022. "How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    9. Amankwah-Amoah, Joseph & Khan, Zaheer & Wood, Geoffrey & Knight, Gary, 2021. "COVID-19 and digitalization: The great acceleration," Journal of Business Research, Elsevier, vol. 136(C), pages 602-611.
    10. Anca Elena-Bucea & Frederico Cruz-Jesus & Tiago Oliveira & Pedro Simões Coelho, 2021. "Assessing the Role of Age, Education, Gender and Income on the Digital Divide: Evidence for the European Union," Information Systems Frontiers, Springer, vol. 23(4), pages 1007-1021, August.
    11. Alexandre Moeuf & Robert Pellerin & Samir Lamouri & Simon Tamayo-Giraldo & Rodolphe Barbaray, 2018. "The industrial management of SMEs in the era of Industry 4.0," International Journal of Production Research, Taylor & Francis Journals, vol. 56(3), pages 1118-1136, February.
    12. Li-Lun & Liu & Yao-Jen & Su, 2022. "Digital Transformation and Strategic Analysis of Human Resource Value," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 12(6), pages 1-6.
    13. Jenny Berrill & Martha O’Hagan-Luff & André Stel, 2020. "The moderating role of education in the relationship between FDI and entrepreneurial activity," Small Business Economics, Springer, vol. 54(4), pages 1041-1059, April.
    14. Rialti, Riccardo & Zollo, Lamberto & Ferraris, Alberto & Alon, Ilan, 2019. "Big data analytics capabilities and performance: Evidence from a moderated multi-mediation model," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    15. Chaudhuri, Atanu & Subramanian, Nachiappan & Dora, Manoj, 2022. "Circular economy and digital capabilities of SMEs for providing value to customers: Combined resource-based view and ambidexterity perspective," Journal of Business Research, Elsevier, vol. 142(C), pages 32-44.
    16. Jafari-Sadeghi, Vahid & Amoozad Mahdiraji, Hannan & Bresciani, Stefano & Pellicelli, Anna Claudia, 2021. "Context-specific micro-foundations and successful SME internationalisation in emerging markets: A mixed-method analysis of managerial resources and dynamic capabilities," Journal of Business Research, Elsevier, vol. 134(C), pages 352-364.
    17. Yun Ma & Hao Du, 2022. "Data-Driven Digital Transformation of Enterprises," Springer Books, in: Enterprise Data at Huawei, chapter 1, pages 1-12, Springer.
    18. Dittes, Sven & Richter, Shahper & Richter, Alexander & Smolnik, Stefan, 2019. "Toward the workplace of the future: How organizations can facilitate digital work," Business Horizons, Elsevier, vol. 62(5), pages 649-661.
    19. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    20. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    21. Tortora, Debora & Chierici, Roberto & Farina Briamonte, Massimiliano & Tiscini, Riccardo, 2021. "‘I digitize so I exist’. Searching for critical capabilities affecting firms’ digital innovation," Journal of Business Research, Elsevier, vol. 129(C), pages 193-204.
    22. Kraus, Sascha & Schiavone, Francesco & Pluzhnikova, Anna & Invernizzi, Anna Chiara, 2021. "Digital transformation in healthcare: Analyzing the current state-of-research," Journal of Business Research, Elsevier, vol. 123(C), pages 557-567.
    23. Riina Vuorikari & Yves Punie & Stephanie Carretero Gomez & Godelieve Van Den Brande, 2016. "DigComp 2.0: The Digital Competence Framework for Citizens. Update Phase 1: the Conceptual Reference Model," JRC Research Reports JRC101254, Joint Research Centre.
    24. Bouwman, Harry & Nikou, Shahrokh & de Reuver, Mark, 2019. "Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?," Telecommunications Policy, Elsevier, vol. 43(9).
    25. Ferraris, Alberto & Degbey, William Y. & Singh, Sanjay Kumar & Bresciani, Stefano & Castellano, Sylvaine & Fiano, Fabio & Couturier, Jerome, 2022. "Microfoundations of Strategic Agility in Emerging Markets: Empirical Evidence of Italian MNEs in India," Journal of World Business, Elsevier, vol. 57(2).
    26. Noemi Oggero & Maria Cristina Rossi & Elisa Ughetto, 2020. "Entrepreneurial spirits in women and men. The role of financial literacy and digital skills," Small Business Economics, Springer, vol. 55(2), pages 313-327, August.
    27. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    28. Caputo, Andrea & Pizzi, Simone & Pellegrini, Massimiliano M. & Dabić, Marina, 2021. "Digitalization and business models: Where are we going? A science map of the field," Journal of Business Research, Elsevier, vol. 123(C), pages 489-501.
    29. Chen, Hansong & Tian, Zhen, 2022. "Environmental uncertainty, resource orchestration and digital transformation: A fuzzy-set QCA approach," Journal of Business Research, Elsevier, vol. 139(C), pages 184-193.
    30. Rodgers, Waymond & Yeung, Fannie & Odindo, Christopher & Degbey, William Y., 2021. "Artificial intelligence-driven music biometrics influencing customers’ retail buying behavior," Journal of Business Research, Elsevier, vol. 126(C), pages 401-414.
    31. Rui Bi & Robert Davison & Kosmas Smyrnios, 2019. "The Role of Top Management Participation and IT Capability in Developing SMEs’ Competitive Process Capabilities," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(3), pages 1008-1026, July.
    32. Martínez-Caro, Eva & Cegarra-Navarro, Juan Gabriel & Alfonso-Ruiz, Francisco Javier, 2020. "Digital technologies and firm performance: The role of digital organisational culture," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    33. ., 2022. "Introduction to digital transformation and social policy," Chapters, in: Participation Income, chapter 1, pages 1-16, Edward Elgar Publishing.
    34. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2019. "To be or not to be digital, that is the question: Firm innovation and performance," Journal of Business Research, Elsevier, vol. 101(C), pages 583-590.
    35. Gaio, Cristina & Gonçalves, Tiago & Venâncio, Ana, 2022. "Cash holdings in start-ups: The role of founder sociodemographic characteristics," Journal of Business Research, Elsevier, vol. 139(C), pages 520-528.
    36. Charbel Salloum & George Jabbour & Catherine Mercier‐suissa, 2019. "Democracy across Gender Diversity and Ethnicity of Middle Eastern SMEs: How Does Performance Differ?," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(1), pages 255-267, January.
    37. Samuel Adomako & Nguyen Phong Nguyen, 2020. "Human resource slack, sustainable innovation, and environmental performance of small and medium‐sized enterprises in sub‐Saharan Africa," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 2984-2994, December.
    38. Jafari-Sadeghi, Vahid & Garcia-Perez, Alexeis & Candelo, Elena & Couturier, Jerome, 2021. "Exploring the impact of digital transformation on technology entrepreneurship and technological market expansion: The role of technology readiness, exploration and exploitation," Journal of Business Research, Elsevier, vol. 124(C), pages 100-111.
    39. Sousa, Maria José & Rocha, Álvaro, 2019. "Skills for disruptive digital business," Journal of Business Research, Elsevier, vol. 94(C), pages 257-263.
    40. Soluk, Jonas & Kammerlander, Nadine & Darwin, Solomon, 2021. "Digital entrepreneurship in developing countries: The role of institutional voids," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    41. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75002, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    42. Santoro, Gabriele & Quaglia, Roberto & Pellicelli, Anna Claudia & De Bernardi, Paola, 2020. "The interplay among entrepreneur, employees, and firm level factors in explaining SMEs openness: A qualitative micro-foundational approach," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    43. Christian Matt & Thomas Hess & Alexander Benlian, 2015. "Digital Transformation Strategies," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(5), pages 339-343, October.
    44. Degbey, William Y. & Pelto, Elina, 2021. "Customer knowledge sharing in cross-border mergers and acquisitions: The role of customer motivation and promise management," Journal of International Management, Elsevier, vol. 27(4).
    45. Bartikowski, Boris & Laroche, Michel & Jamal, Ahmad & Yang, Zhiyong, 2018. "The type-of-internet-access digital divide and the well-being of ethnic minority and majority consumers: A multi-country investigation," Journal of Business Research, Elsevier, vol. 82(C), pages 373-380.
    46. Neil Tocher & Matthew W. Rutherford, 2009. "Perceived Acute Human Resource Management Problems in Small and Medium Firms: An Empirical Examination," Entrepreneurship Theory and Practice, , vol. 33(2), pages 455-479, March.
    47. Cenamor, Javier & Parida, Vinit & Wincent, Joakim, 2019. "How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity," Journal of Business Research, Elsevier, vol. 100(C), pages 196-206.
    48. Charbel Salloum & Georges Jabbour & Catherine Mercier-Suissa, 2019. "Democracy across Gender Diversity and Ethnicity of Middle Eastern SMEs: How Does Performance Differ?," Post-Print hal-01472697, HAL.
    49. Peter Abell & Teppo Felin & Nicolai Foss, 2008. "Building micro-foundations for the routines, capabilities, and performance links," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(6), pages 489-502.
    50. Rodgers, Waymond & Degbey, William Y. & Housel, Thomas J. & Arslan, Ahmad, 2020. "Microfoundations of collaborative networks: The impact of social capital formation and learning on investment risk assessment," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    51. Hughes, Paul & Hughes, Matthew & Stokes, Peter & Lee, Hanna & Rodgers, Peter & Degbey, William Y., 2020. "Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    52. Fernando, Guy D. & Jain, Shalini Sarin & Tripathy, Arindam, 2020. "This cloud has a silver lining: Gender diversity, managerial ability, and firm performance," Journal of Business Research, Elsevier, vol. 117(C), pages 484-496.
    53. Kohtamäki, Marko & Rabetino, Rodrigo & Einola, Suvi & Parida, Vinit & Patel, Pankaj, 2021. "Unfolding the digital servitization path from products to product-service-software systems: Practicing change through intentional narratives," Journal of Business Research, Elsevier, vol. 137(C), pages 379-392.
    54. Dong Qiu & Binglin Lv & Calvin M. L. Chan, 2022. "How Digital Platforms Enhance Urban Resilience," Sustainability, MDPI, vol. 14(3), pages 1-17, January.
    55. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75202, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    56. Ostmeier, Esther & Strobel, Maria, 2022. "Building skills in the context of digital transformation: How industry digital maturity drives proactive skill development," Journal of Business Research, Elsevier, vol. 139(C), pages 718-730.
    57. Oliveira, Fabio & Kakabadse, Nada & Khan, Nadeem, 2022. "Board engagement with digital technologies: A resource dependence framework," Journal of Business Research, Elsevier, vol. 139(C), pages 804-818.
    58. Matarazzo, Michela & Penco, Lara & Profumo, Giorgia & Quaglia, Roberto, 2021. "Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 123(C), pages 642-656.
    59. Nakos, George & Dimitratos, Pavlos & Elbanna, Said, 2019. "The mediating role of alliances in the international market orientation-performance relationship of smes," International Business Review, Elsevier, vol. 28(3), pages 603-612.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jafari-Sadeghi, Vahid & Amoozad Mahdiraji, Hannan & Alam, Gazi Mahabubul & Mazzoleni, Alberto, 2023. "Entrepreneurs as strategic transformation managers: Exploring micro-foundations of digital transformation in small and medium internationalisers," Journal of Business Research, Elsevier, vol. 154(C).
    2. Scuotto, V & Nicotra, M. & Del Giudice, M. & Krueger, N. & Gregori, G.L., 2021. "A microfoundational perspective on SMEs’ growth in the digital transformation era," Journal of Business Research, Elsevier, vol. 129(C), pages 382-392.
    3. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    4. Zhu, Xiumei & Li, Yue, 2023. "The use of data-driven insight in ambidextrous digital transformation: How do resource orchestration, organizational strategic decision-making, and organizational agility matter?," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    5. Piepponen, Amanda & Ritala, Paavo & Keränen, Joona & Maijanen, Päivi, 2022. "Digital transformation of the value proposition: A single case study in the media industry," Journal of Business Research, Elsevier, vol. 150(C), pages 311-325.
    6. Sufyan, Muhammad & Degbey, William Y. & Glavee-Geo, Richard & Zoogah, Baniyelme D., 2023. "Transnational digital entrepreneurship and enterprise effectiveness: A micro-foundational perspective," Journal of Business Research, Elsevier, vol. 160(C).
    7. Jiang, Kangqi & Du, Xinyi & Chen, Zhongfei, 2022. "Firms' digitalization and stock price crash risk," International Review of Financial Analysis, Elsevier, vol. 82(C).
    8. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    9. Blanka, Christine & Krumay, Barbara & Rueckel, David, 2022. "The interplay of digital transformation and employee competency: A design science approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    10. Eller, Robert & Alford, Philip & Kallmünzer, Andreas & Peters, Mike, 2020. "Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization," Journal of Business Research, Elsevier, vol. 112(C), pages 119-127.
    11. Chen, Hansong & Tian, Zhen, 2022. "Environmental uncertainty, resource orchestration and digital transformation: A fuzzy-set QCA approach," Journal of Business Research, Elsevier, vol. 139(C), pages 184-193.
    12. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    13. Vuchkovski, Davor & Zalaznik, Maja & Mitręga, Maciej & Pfajfar, Gregor, 2023. "A look at the future of work: The digital transformation of teams from conventional to virtual," Journal of Business Research, Elsevier, vol. 163(C).
    14. Hua Feng & Fengyan Wang & Guomin Song & Lanlan Liu, 2022. "Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism," IJERPH, MDPI, vol. 19(17), pages 1-31, August.
    15. Chen, Zhongfei & Xiao, Yu & Jiang, Kangqi, 2023. "The impact of tax reform on firms' digitalization in China," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    16. Tortora, Debora & Chierici, Roberto & Farina Briamonte, Massimiliano & Tiscini, Riccardo, 2021. "‘I digitize so I exist’. Searching for critical capabilities affecting firms’ digital innovation," Journal of Business Research, Elsevier, vol. 129(C), pages 193-204.
    17. Li, Min & Liu, Na & Kou, Aiju & Chen, Wenchuan, 2023. "Customer concentration and digital transformation," International Review of Financial Analysis, Elsevier, vol. 89(C).
    18. Changling Sun & Ziang Lin & Marek Vochozka & Zuzana Vincúrová, 2022. "Digital transformation and corporate cash holdings in China’s A-share listed companies," Oeconomia Copernicana, Institute of Economic Research, vol. 13(4), pages 1081-1116, December.
    19. Ardito, Lorenzo & Raby, Simon & Albino, Vito & Bertoldi, Bernardo, 2021. "The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance," Journal of Business Research, Elsevier, vol. 123(C), pages 44-56.
    20. Evangelos Katsamakas, 2022. "Digital Transformation and Sustainable Business Models," Sustainability, MDPI, vol. 14(11), pages 1-5, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:159:y:2023:i:c:s0148296323001133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.