<![CDATA[The accelerating digital transformation has intensified competition among small and medium-sized enterprises (SMEs), requiring firms to develop capabilities that extend beyond the adoption of digital technologies. This study aims to examine the roles of digital transformation capability and entrepreneurial orientation in improving SME performance through business agility as a mediating variable. A quantitative approach with an explanatory research design was employed, using a cross-sectional survey of SME owners or managers who had adopted digital technologies in their business activities. Data were collected through a Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), including measurement model, structural model, direct effect, and indirect effect assessments. The findings indicate that digital transformation capability strengthens SMEs’ ability to adapt to changes in the business environment, while entrepreneurial orientation enhances their capacity to identify and exploit emerging opportunities. Business agility plays an important role in translating these capabilities into improved SME performance by facilitating faster and more flexible responses to market changes. The study implies that SMEs should integrate digital capabilities, entrepreneurial orientation, and business agility rather than relying solely on technology adoption to strengthen sustainable performance and competitiveness.]]>
Copyrights © 2025
