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Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation

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  • Merín-Rodrigáñez, Joan
  • Dasí, Àngels
  • Alegre, Joaquín

Abstract

This study investigates the consequences of digital transformation (DT) over performance in the case of innovative Small and Medium-sized Enterprises (SMEs). SMEs represent a heterogeneous kind of company in terms of capabilities. By focusing on their innovative character as a boundary condition, we increase our understanding of this relationship. We further research the mediating role of business model innovation (BMI) in the relationship between DT and performance. A sample of 434 innovative Spanish SMEs is used to test the research model through Partial Least Squares Structural Equation Modelling (PLS-SEM). We find that BMI partially mediates the positive relationship between DT and performance. This finding extends our understanding of BMI as an alignment tool and a blueprint for innovative SMEs channeling their investments in DT towards the improvement of performance. Finally, we put forward managerial implications and propose future avenues of research.

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  • Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:techno:v:134:y:2024:i:c:s0166497224000774
    DOI: 10.1016/j.technovation.2024.103027
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