Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323546 
Year of Publication: 
2024
Citation: 
[Journal:] Small Business Economics [ISSN:] 1573-0913 [Volume:] 64 [Issue:] 3 [Publisher:] Springer US [Place:] New York, NY [Year:] 2024 [Pages:] 1361-1385
Publisher: 
Springer US, New York, NY
Abstract: 
In the digital era, organizations strategically adopt digital transformation to thrive and prosper. In particular, they allocate substantial resources to cultivate digital orientation. However, limited research has explored how digital orientation impacts the performance of small and medium-sized enterprises (SMEs). Our study sheds light on this relationship, examining it through the lens of a resource-based view (RBV) and dynamic capability (DC) perspective. We empirically quantify digital orientation and its subdimensions using textual data extracted from SME websites. Our findings unveil a U-shaped relationship: while high performance is observable at both extremes of the spectrum, an initial increase in digital orientation is associated with performance setbacks until a specific threshold of digital orientation is reached, after which performance once again begins to improve. As a result, SMEs should consider a strategic allocation of resources while pursuing digital orientation to build capabilities during their digital transformation journey.
Subjects: 
Digital orientation
Performance
SMEs
Resource-based view
Dynamic capabilities
JEL: 
L25
L26
M15
O32
O33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.