The mediating role of organizational factors between environmental changes and SMEs’ digital transformation

Zhelyu D. Vladimirov and Olya B. Harizanova

Central European Management Journal, 2025, vol. 34, issue 2, 226-241

Abstract: PurposeBased on the technology-organization-environment (TOE) framework, the goal of this study is to examine the mediating role of organizational factors between environmental changes and SMEs digital transformation (DT). Precisely, it tests a structural model with the mediating role of top management support and digital strategy between general environmental and industry-specific factors, perceived barriers and digital technology usage, DT and firm performance. It also examines the moderating effects of sectors on the relationship between digital technology usage and DT.Design/methodology/approachData were obtained from 1,000 SMEs in different sectors of Bulgaria through a standardized questionnaire and were processed using SmartPLS.FindingsThe results show that top management support and digital strategy mediate the effects of both general environmental and industry-specific factors and internal antecedents (perceived barriers and digital technology usage) on DT and firm performance. The industry sector moderates the influence of digital technology usage on DT.Research limitations/implicationsThis study uses cross-sectional data, which provide only a snapshot of the current state of SMEs’ DT in Bulgaria.Practical implicationsThe results suggest that SMEs managers should be more open to both general and industry-specific environmental signals and should rethink their strategies regarding the use of digital technologies to improve performance.Social implicationsThe advancement of DT in SMEs has great social importance as it can contribute to improving the quality of life, greater employment in technology sectors and the development of more innovative products and services.Originality/valueThis study enriches the TOE model by separating the effects of environmental factors into general and industry-specific ones. It also reveals the mediating role of organizational factors between environmental factors and DT.

Keywords: SMEs; Digital transformation; Environmental changes; Organizational factors; Firm performance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:cemjpp:cemj-11-2024-0377

DOI: 10.1108/CEMJ-11-2024-0377

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