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

Satar Mir Shahid (), Alshibani Safiya Mukhtar () and Alarifi Ghadah ()
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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

Entrepreneurship Research Journal, 2025, vol. 15, issue 1, 91-124

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.

Keywords: digital transformation; digital strategy; entrepreneurship orientation; strategic agility (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1515/erj-2023-0267

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