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

Irena Mladenova (), Zhelyu Vladimirov () and Olya Harizanova
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Irena Mladenova: Sofia University St. Kliment Ohridski, Bulgaria
Zhelyu Vladimirov: Sofia University St. Kliment Ohridski, Bulgaria
Olya Harizanova: Sofia University St. Kliment Ohridski, Bulgaria

Eastern Journal of European Studies, 2025, vol. 16(1), 216-238

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.

Keywords: digital transformation; organisational capabilities; organisational change; SMEs (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:jes:journl:y:2025:v:16(1):p:216-238

DOI: 10.47743/ejes-2025-0110

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