Shee, Himanshu ORCID: 0000-0002-6990-154X, Kaswi, Surahman, Fitrian, Zhirky, Adi, Ari Sasmoko and Yudaruddin, Rizky (2023) The mediating role of digital transformation and innovation on SME performance during the COVID-19 pandemic. Problems and Perspectives in Management, 21 (4). pp. 84-100.

Abstract

This study examines the impact of digital capabilities and digital orientation on the digital transformation and digital innovation of small and medium enterprises (SMEs) during the COVID-19 pandemic. In addition, this study examines how the role of digital transformation and digital innovation mediates the relationship between digital capabilities and digital orientation and SME performance during the COVID-19 pandemic. Using a sample of 247 SME managers, data were analyzed using the Structural Equation Modeling with Partial Least Square approach. The findings demonstrate the significant and positive influence of both digital capability and digital orientation on SMEs' digital transformation and innovation during the pandemic. Additionally, the study confirms that digital transformation and innovation positively affect SME performance during the pandemic. Furthermore, the study reveals that digital transformation and innovation mediate the relationship between digital orientation and capability on SME performance during the pandemic. However, digital innovation was not found to significantly mediate the link between digital capability and SME performance.

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