TY - JOUR

T1 - Digital transformation of SMEs in times of uncertainty: effectuation perspective

AU - Чэнь, Шэнлун

AU - Цай, Цзяньнань

AU - Богатырева, Карина Александровна

AU - Куансах, Эвураджоа Манса

N1 - Chen, S., Cai, J., Bogatyreva, K. and Quansah, E. (2024), "Digital transformation of SMEs in times of uncertainty: effectuation perspective", Journal of Entrepreneurship in Emerging Economies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEEE-11-2023-0490

PY - 2024/6/3

Y1 - 2024/6/3

N2 - PurposeSmall- and medium-sized enterprises (SMEs) increasingly implement digitalization in uncertain business environments. However, a dearth exists in the entrepreneurship literature for understanding the decision-making logic of digitalization as a management issue. Drawing on the effectuation theory, this study aims to explore the relationships between effectuation dimensions and SMEs’ digitalization.Design/methodology/approachUsing quantitative data collected from 345 Chinese SMEs through questionnaires, the authors conducted the principal component analysis and hierarchical linear regression analysis.FindingsThe results highlight significant positive relationships between the four effectuation elements – experimentation, affordable loss, flexibility and precommitment – and SMEs’ digitalization. Moreover, this research considers the environmental conditions as moderators and reveals that environmental dynamism and complexity associated with high uncertainty negatively moderate the effects of effectuation on SMEs’ digitalization.Practical implicationsSMEs embarking on digitalization should constantly experiment to determine optimal strategies while contemplating their affordable losses. Flexibility should also be maintained to discard unproductive tactics and redirect to other viable options. Additionally, precommitments can reduce the risk that SMEs encounter in digitalization process. While the effectuation principles consolidate the likelihood of a successful digitalization, this research recommends that entrepreneurs should carefully consider their possible application in uncertain environments.Originality/valueThis study contributes to the entrepreneurship literature by theoretically clarifying the decision-making mechanism of digitalization and extends the application of effectuation to this context by illuminating the influences of effectuation principles on SMEs’ digital transformation. The identification of negative moderating effects of environmental uncertainty also augments an academic criticism about uncertainty creating the conditions for effectuation.

AB - PurposeSmall- and medium-sized enterprises (SMEs) increasingly implement digitalization in uncertain business environments. However, a dearth exists in the entrepreneurship literature for understanding the decision-making logic of digitalization as a management issue. Drawing on the effectuation theory, this study aims to explore the relationships between effectuation dimensions and SMEs’ digitalization.Design/methodology/approachUsing quantitative data collected from 345 Chinese SMEs through questionnaires, the authors conducted the principal component analysis and hierarchical linear regression analysis.FindingsThe results highlight significant positive relationships between the four effectuation elements – experimentation, affordable loss, flexibility and precommitment – and SMEs’ digitalization. Moreover, this research considers the environmental conditions as moderators and reveals that environmental dynamism and complexity associated with high uncertainty negatively moderate the effects of effectuation on SMEs’ digitalization.Practical implicationsSMEs embarking on digitalization should constantly experiment to determine optimal strategies while contemplating their affordable losses. Flexibility should also be maintained to discard unproductive tactics and redirect to other viable options. Additionally, precommitments can reduce the risk that SMEs encounter in digitalization process. While the effectuation principles consolidate the likelihood of a successful digitalization, this research recommends that entrepreneurs should carefully consider their possible application in uncertain environments.Originality/valueThis study contributes to the entrepreneurship literature by theoretically clarifying the decision-making mechanism of digitalization and extends the application of effectuation to this context by illuminating the influences of effectuation principles on SMEs’ digital transformation. The identification of negative moderating effects of environmental uncertainty also augments an academic criticism about uncertainty creating the conditions for effectuation.

M3 - Article

JO - Journal of Entrepreneurship in Emerging Economies

JF - Journal of Entrepreneurship in Emerging Economies

SN - 2053-4604

ER -