While digital transformation is crucial for enterprise competitiveness, the mechanism by which digital maturity translates into business performance remains unclear. This study examines the mediating role of digital literacy in this relationship. Using data from 1,152 small and medium-sized enterprises, we employed structural equation modeling and Bootstrap mediation testing to analyze the mediating mechanism. Results show that digital literacy consists of five dimensions with good reliability (Cronbach's α=0.897). Digital maturity significantly impacts business performance (β=0.797, p<0.001), with digital literacy playing a partial mediating role, accounting for 12.92% of the total effect—significantly stronger than organizational support attitude (7.78%). Digital literacy functions both as an independent mediator and as part of a chain mediation pathway. This study enriches digital capability theory by constructing a multi-dimensional digital literacy model and revealing its complex mediating mechanism. Managerial implications suggest that enterprises should prioritize digital literacy cultivation as a core component of digital transformation while establishing systematic digital skills training systems.
Lingyu Yang (Wed,) studied this question.