IDEAS home Printed from https://ideas.repec.org/a/jes/journl/y2025v16(1)p216-238.html
   My bibliography  Save this article

Digital transformation, organisational capabilities, and SME performance - size matters

Author

Listed:
  • Irena Mladenova

    (Sofia University St. Kliment Ohridski, Bulgaria)

  • Zhelyu Vladimirov

    (Sofia University St. Kliment Ohridski, Bulgaria)

  • Olya Harizanova

    (Sofia University St. Kliment Ohridski, Bulgaria)

Abstract

This paper aims to reveal organisational capabilities of small and medium-sized enterprises (SMEs) to transform digitally and to explore some differences between enterprises' groups. The study approaches digital transformation as transformative and continuous organisational change facilitated by digital technologies and describes the capabilities of SMEs to navigate such a change. This research is quantitative and uses data from a sample of 308 SMEs in Bulgaria, collected during October-December 2023. Five composite variables (transformational leadership, organisational flexibility, risk-tolerant culture, digital skills, and digital business intensity) are used to describe SMEs' ability to implement DT-induced organisational change. Based on these variables, a cluster analysis is applied, which delineates four distinct groups of SMEs. The results show that medium-sized firms do much better on all five variables and demonstrate better firm performance than micro-enterprises.

Suggested Citation

  • Irena Mladenova & Zhelyu Vladimirov & Olya Harizanova, 2025. "Digital transformation, organisational capabilities, and SME performance - size matters," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 16, pages 216-238, June.
    • Handle: RePEc:jes:journl:y:2025:v:16(1):p:216-238
    DOI: https://doi.org/10.47743/ejes-2025-0110
    as

    Download full text from publisher

    File URL: https://ejes.uaic.ro/articles/EJES2025_1601_10_MLA.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.47743/ejes-2025-0110?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
    ---><---

    References listed on IDEAS

    as
    1. Shahzad, Fakhar & Xiu, GuoYi & Shahbaz, Muhammad, 2017. "Organizational culture and innovation performance in Pakistan's software industry," Technology in Society, Elsevier, vol. 51(C), pages 66-73.
    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. Azeem, Muhammad & Ahmed, Munir & Haider, Sajid & Sajjad, Muhammad, 2021. "Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation," Technology in Society, Elsevier, vol. 66(C).
    2. Shahbaz, Muhammad & Gao, Changyuan & Zhai, LiLi & Shahzad, Fakhar & Khan, Imran, 2021. "Environmental air pollution management system: Predicting user adoption behavior of big data analytics," Technology in Society, Elsevier, vol. 64(C).
    3. Beili Li & Xu Fan & Susana Álvarez-Otero & Muhammad Safdar Sial & Ubaldo Comite & Jacob Cherian & László Vasa, 2021. "CSR and Workplace Autonomy as Enablers of Workplace Innovation in SMEs through Employees: Extending the Boundary Conditions of Self-Determination Theory," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    4. Steruska, Jana & Simkova, Nikola & Pitner, Tomas, 2019. "Do science and technology parks improve technology transfer?," Technology in Society, Elsevier, vol. 59(C).
    5. Beatriz Corchuelo Martínez-Azúa & Pedro Eugenio López-Salazar & Celia Sama-Berrocal, 2020. "Determining Factors of Innovative Performance: Case Studies in Extremaduran Agri-Food Companies," Sustainability, MDPI, vol. 12(21), pages 1-24, November.
    6. Hayajneh, Jamal Abdelrahman .M. & Elayan, Malek Bakheet Haroun & Abdellatif, Mamdouh Abdallah Mohamed & Abubakar, A. Mohammed, 2022. "Impact of business analytics and π-shaped skills on innovative performance: Findings from PLS-SEM and fsQCA," Technology in Society, Elsevier, vol. 68(C).
    7. Navimipour, Nima Jafari & Milani, Farnaz Sharifi & Hossenzadeh, Mehdi, 2018. "A model for examining the role of effective factors on the performance of organizations," Technology in Society, Elsevier, vol. 55(C), pages 166-174.
    8. Carlos Fernandez-Jardon & Xavier Martinez-Cobas & Fabian Martinez-Ortiz, 2020. "Technology and Culture in Subsistence Small Businesses," Sustainability, MDPI, vol. 12(22), pages 1-13, November.
    9. Rahi, Samar & Abd.Ghani, Mazuri & Hafaz Ngah, Abdul, 2019. "Integration of unified theory of acceptance and use of technology in internet banking adoption setting: Evidence from Pakistan," Technology in Society, Elsevier, vol. 58(C).
    10. Shahzad, Fakhar & Xiu, GuoYi & Wang, Jian & Shahbaz, Muhammad, 2018. "An empirical investigation on the adoption of cryptocurrencies among the people of mainland China," Technology in Society, Elsevier, vol. 55(C), pages 33-40.
    11. Priyanka, & Jain, Mahima & Dhir, Sanjay, 2022. "Antecedents of organization ambidexterity: A comparative study of public and private sector organizations," Technology in Society, Elsevier, vol. 70(C).
    12. Adeyinka Oluwa & Umar Abbas Ibrahim, 2021. "Investigating the influence of organisational culture on the performance of Small and Medium Enterprises (SMEs):Evidence from Nigeria," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(4), pages 485-495, June.
    13. Jiang, Renai & Saeed, Muhammad & Yang, Shenghao & Saqib, Shahab E., 2023. "The impact-mechanism of “Internet +” on the innovation performance of traditional enterprises: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    14. SETYANINGSIH Santi & KELLE Peter, 2022. "Improving Customer Satisfaction For Smes In Emerging Countries: A Comparative Study Of Hungary And Indonesia," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(3), pages 204-223, December.
    15. Siriram, Rajenlall, 2022. "An innovative approach to overcoming technological challenges and improving firm performance in South Africa," Technology in Society, Elsevier, vol. 68(C).
    16. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Păunescu, 2021. "Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment," Sustainability, MDPI, vol. 13(10), pages 1-28, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:jes:journl:y:2025:v:16(1):p:216-238. 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: Alupului Ciprian (email available below). General contact details of provider: https://edirc.repec.org/data/csjesro.html .

    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.