IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i9p3831-d1387824.html
   My bibliography  Save this article

SMEs Awareness and Preparation for Digital Transformation: Exploring Business Opportunities for Entrepreneurs in Saudi Arabia’s Ha’il Region

Author

Listed:
  • Abhishek Tripathi

    (Department of Management & Information Systems, College of Business Administration, University of Ha’il, Hail 55476, Saudi Arabia)

  • Ajay Singh

    (Department of Management & Information Systems, College of Business Administration, University of Ha’il, Hail 55476, Saudi Arabia)

Abstract

This study investigates how Saudi SMEs’ awareness and preparation for digital transformation impact their business performance (BP). First and foremost, in this study, we examine the impact of awareness and preparation on business performance using the intention to use (ITU) as an initial mediator. In addition, the researchers also examined the impact of awareness and preparation on business performance through intention to use and Government Support (GS), and later, intention to use and skills as serial mediators. Using a structured questionnaire based on a seven-point Likert scale, data were collected from 68 SMEs in the Ha’il region of Saudi Arabia, one of the Kingdom’s leading economic provinces. The data were analyzed through simple and serial mediation techniques through AMOS-24. The study found that SMEs’ awareness and preparation for digital transformation significantly and positively influenced their intentions to use the technology. The researchers found that intention to use, skills, and government support are significant variables that improve business performance. The research also revealed full-serial mediation between awareness and business performance and preparation and business performance, showing that intention to use and skills and intention to use and government support significantly mediate improving SMEs’ business performance. The study implications provide for SMEs’ successful digital transformation, considering the role of skills and government support, which will help SMEs improve their performance and embrace sustainability in human and economic development in Saudi Arabia. Together with policymakers, SMEs, and researchers, it will also look at the entrepreneurial potential for Saudi nationals in the run-up to Vision 2030.

Suggested Citation

  • Abhishek Tripathi & Ajay Singh, 2024. "SMEs Awareness and Preparation for Digital Transformation: Exploring Business Opportunities for Entrepreneurs in Saudi Arabia’s Ha’il Region," Sustainability, MDPI, vol. 16(9), pages 1-28, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:9:p:3831-:d:1387824
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/9/3831/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/9/3831/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    2. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Hughes, Paul & Hughes, Matthew & Stokes, Peter & Lee, Hanna & Rodgers, Peter & Degbey, William Y., 2020. "Micro-foundations of organizational ambidexterity in the context of cross-border mergers and acquisitions," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    4. Fossen, Frank M. & Sorgner, Alina, 2021. "Digitalization of work and entry into entrepreneurship," Journal of Business Research, Elsevier, vol. 125(C), pages 548-563.
    5. Guo, Xiaochuan & Li, Mengmeng & Wang, Yanlin & Mardani, Abbas, 2023. "Does digital transformation improve the firm’s performance? From the perspective of digitalization paradox and managerial myopia," Journal of Business Research, Elsevier, vol. 163(C).
    6. Jiang, Hong & Yang, Jingxuan & Gai, Jinlong, 2023. "How digital platform capability affects the innovation performance of SMEs—Evidence from China," Technology in Society, Elsevier, vol. 72(C).
    7. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    8. Helfat, Constance E. & Raubitschek, Ruth S., 2018. "Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems," Research Policy, Elsevier, vol. 47(8), pages 1391-1399.
    9. Huatao Peng & Bingbing Li & Yang Liu, 2022. "How Social Network Influences the Growth of Entrepreneurial Enterprises: Perspective on Organizational and Personal Network," SAGE Open, , vol. 12(2), pages 21582440221, June.
    10. Ledyard Tucker & Charles Lewis, 1973. "A reliability coefficient for maximum likelihood factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 38(1), pages 1-10, March.
    11. Gerard George & Ryan K. Merrill & Simon J. D. Schillebeeckx, 2021. "Digital Sustainability and Entrepreneurship: How Digital Innovations Are Helping Tackle Climate Change and Sustainable Development," Entrepreneurship Theory and Practice, , vol. 45(5), pages 999-1027, September.
    12. Chatzistamoulou, Nikos, 2023. "Is digital transformation the Deus ex Machina towards sustainability transition of the European SMEs?," Ecological Economics, Elsevier, vol. 206(C).
    13. Rafael Martínez-Peláez & Alberto Ochoa-Brust & Solange Rivera & Vanessa G. Félix & Rodolfo Ostos & Héctor Brito & Ramón A. Félix & Luis J. Mena, 2023. "Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology," Sustainability, MDPI, vol. 15(14), pages 1-27, July.
    14. Feliciano-Cestero, María M. & Ameen, Nisreen & Kotabe, Masaaki & Paul, Justin & Signoret, Mario, 2023. "Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    15. Zhiying Ji & Tingyu Zhou & Qian Zhang, 2023. "The Impact of Digital Transformation on Corporate Sustainability: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    16. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rugiubei Radu & Pînzaru Florina, 2022. "The digitalization of supply chain management in Romanian companies: an introductive research," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 1295-1305, August.
    2. Kao, Ling-Jing & Chiu, Chih-Chou & Lin, Hung-Tse & Hung, Yun-Wei & Lu, Cheng-Chin, 2024. "Unveiling the dimensions of digital transformation: A comprehensive taxonomy and assessment model for business," Journal of Business Research, Elsevier, vol. 176(C).
    3. Chang-Geun Kim & Oh-Suk Yang, 2024. "Global Companies’ Dynamic Response to Business Environment Uncertainty through Digital Transformation: Sustainable Digital Quality–Customer Value–Market Performance Relationships," Sustainability, MDPI, vol. 16(15), pages 1-32, July.
    4. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    5. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    6. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    7. Wang, Sai & Wen, Wen & Niu, Yuhao & Li, Xin, 2024. "Digital transformation and corporate labor investment efficiency," Emerging Markets Review, Elsevier, vol. 59(C).
    8. Monica Molino & Claudio G. Cortese & Chiara Ghislieri, 2021. "Technology Acceptance and Leadership 4.0: A Quali-Quantitative Study," IJERPH, MDPI, vol. 18(20), pages 1-18, October.
    9. Young Won Park & Paul Hong, 2022. "A Research Framework for Sustainable Digital Innovation: Case Studies of Japanese Firms," Sustainability, MDPI, vol. 14(15), pages 1-13, July.
    10. Alexander Maedche & Christine Legner & Alexander Benlian & Benedikt Berger & Henner Gimpel & Thomas Hess & Oliver Hinz & Stefan Morana & Matthias Söllner, 2019. "AI-Based Digital Assistants," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(4), pages 535-544, August.
    11. António Porfírio, José & Augusto Felício, José & Carrilho, Tiago, 2024. "Factors affecting digital transformation in banking," Journal of Business Research, Elsevier, vol. 171(C).
    12. Miehé, Lucas & Palmié, Maximilian & Oghazi, Pejvak, 2023. "Connection successfully established: How complementors use connectivity technologies to join existing ecosystems – Four archetype strategies from the mobility sector," Technovation, Elsevier, vol. 122(C).
    13. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Păunescu, 2021. "Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment," Sustainability, MDPI, vol. 13(10), pages 1-28, May.
    14. Samuli Laato & Matti Mäntymäki & A. K.M. Najmul Islam & Sami Hyrynsalmi & Teemu Birkstedt, 2023. "Trends and Trajectories in the Software Industry: implications for the future of work," Information Systems Frontiers, Springer, vol. 25(2), pages 929-944, April.
    15. Robert Keller & Philipp Ollig & Patrick Rövekamp, 2022. "Pathways to Developing Digital Capabilities within Entrepreneurial Initiatives in Pre-Digital Organizations," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(1), pages 33-46, February.
    16. Wittenstein, Daniel, 2020. "Champions of digital transformation? The dynamic capabilities of hidden champions," ZEW Discussion Papers 20-065, ZEW - Leibniz Centre for European Economic Research.
    17. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    18. Jinshan Zhang & Man Liu, 2024. "How to Leverage Digital Sustainability Orientation to Promote Environmentally Sustainable Practices of Manufacturing Enterprises in China," Sustainability, MDPI, vol. 16(12), pages 1-20, June.
    19. Hans-Joachim Schramm & Carolin Nicole Czaja & Michael Dittrich & Matthias Mentschel, 2019. "Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future," Logistics, MDPI, vol. 3(1), pages 1-17, February.
    20. Chwiłkowska-Kubala, Anna & Cyfert, Szymon & Malewska, Kamila & Mierzejewska, Katarzyna & Szumowski, Witold, 2023. "The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation," Technology in Society, Elsevier, vol. 74(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:9:p:3831-:d:1387824. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.