The Role of Digitalisation in Mediating Business Performance: A Study of Organisational Readiness, Competitive Advantage, and Entrepreneurial Competency in SMEs

Abstract

Digitalisation is crucial to SME competitiveness, especially for women entrepreneurs. Most studies have examined internal capacities or digital transformation separately. This study examines how digitalisation mediates organisational readiness, entrepreneurial competency, competitive advantage, and SME performance. According to the Resource-Based View (RBV), internal capacities improve performance, with digitisation mediating. This quantitative analysis uses data from 140 female Medan and Deli Serdang small and medium firm owners. Data analysis used PLS-SEM. Data showed that organisational preparedness and entrepreneurial competence positively impact digitalisation and SME performance. Digitalisation mediated the competitive advantage-performance connection.