Abstract:

Digital transformation capability has emerged as a critical strategic capability enabling entrepreneurial firms, particularly small and medium-sized enterprises (SMEs), to improve innovation capability, competitiveness, and firm performance in digital economies. Recent studies demonstrate that digital transformation capability significantly enhances firm agility, innovation performance, and strategic flexibility, allowing entrepreneurial firms to adapt to rapidly evolving digital environments. However, we have not sufficiently explored the mechanisms through which digital transformation capability enhances the performance of entrepreneurial firms. In particular, the mediating role of business model innovation and the moderating role of entrepreneurial leadership require further investigation. This paper suggests a new idea that looks at how digital transformation capability affects the performance of entrepreneurial firms, with business model innovation playing a middle role and entrepreneurial leadership influencing the outcome, based on Dynamic Capability Theory and Resource-Based View. This study focuses on Saudi Arabian SMEs, where digital transformation represents a key pillar of Vision 2030. Data will be collected from SME top management using structured questionnaires. This study helps by using SmartPLS-SEM for explaining relationships, Artificial Neural Network (ANN) for making predictions, and Fuzzy DEMATEL to confirm cause-and-effect links This study contributes to entrepreneurship and digital transformation literature by integrating technological capability, innovation capability, and leadership perspectives within emerging entrepreneurial ecosystems.

Please choose your submission type: Developmental Paper

Primary Track: Entrepreneurship

Keywords: Indigenous entrepreneurship;Entrepreneurship and climate change;Entrepreneurship in emerging markets;Informal Economy & the "Dark Side" of Entrepreneurship;Entrepreneurship in the Circular Economy

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Dr. Hala Hattab