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Article

The Effect of Digital Orientation and Digital Capability on Digital Transformation of SMEs during the COVID-19 Pandemic

Faculty of Business, Management and Economics, University of Latvia, LV-1050 Riga, Latvia
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Academic Editors: Eduardo Álvarez-Miranda and Saïd Assar
J. Theor. Appl. Electron. Commer. Res. 2022, 17(2), 669-685; https://doi.org/10.3390/jtaer17020035
Received: 16 February 2022 / Revised: 13 April 2022 / Accepted: 8 May 2022 / Published: 11 May 2022
Despite the growing importance of digital transformation, empirical research on the drivers of digital transformation is still lacking, creating a knowledge gap. The purpose of this study is to explore the effect of digital orientation and digital capability on digital transformation, as well as the mediating effect of digital transformation on revenues and business models of SMEs during the COVID-19 pandemic. This paper examines a new conceptual framework designed on resource-based theory perspectives by using survey data of 246 SMEs in Latvia. To achieve the research purpose, this study used a mediation analysis to examine the direct effect of digital orientation and digital capability on digital transformation, as well as to explore the mediating effect of digital transformation on SME outcomes. Our results reveal that both digital orientation and digital capability have direct positive effects on digital transformation. We also found that digital transformation has a positive mediating effect from digital orientation on revenue and business model, as well as from digital capability on revenue. These findings could be useful for policymakers, managers and practitioners to clarify how digital orientation and digital capability intermediated through digital transformation affect the outcomes of SMEs. View Full-Text
Keywords: digital transformation; SME; digital orientation; digital capability; mediation analysis; resource orchestration theory; dynamic managerial capabilities theory digital transformation; SME; digital orientation; digital capability; mediation analysis; resource orchestration theory; dynamic managerial capabilities theory
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MDPI and ACS Style

Rupeika-Apoga, R.; Petrovska, K.; Bule, L. The Effect of Digital Orientation and Digital Capability on Digital Transformation of SMEs during the COVID-19 Pandemic. J. Theor. Appl. Electron. Commer. Res. 2022, 17, 669-685. https://doi.org/10.3390/jtaer17020035

AMA Style

Rupeika-Apoga R, Petrovska K, Bule L. The Effect of Digital Orientation and Digital Capability on Digital Transformation of SMEs during the COVID-19 Pandemic. Journal of Theoretical and Applied Electronic Commerce Research. 2022; 17(2):669-685. https://doi.org/10.3390/jtaer17020035

Chicago/Turabian Style

Rupeika-Apoga, Ramona, Kristine Petrovska, and Larisa Bule. 2022. "The Effect of Digital Orientation and Digital Capability on Digital Transformation of SMEs during the COVID-19 Pandemic" Journal of Theoretical and Applied Electronic Commerce Research 17, no. 2: 669-685. https://doi.org/10.3390/jtaer17020035

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