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This study examines the impact of digital and industrial capabilities on efficiency in SMEs, indicating potential moderating roles of e-commerce and big data analytics.
Purpose This study aims to examine how digital platform capabilities (DPC) and industrial capabilities (IDC) affect digital efficiency (DE) with the mediator of industrial readiness (IR). The research also investigates potential moderating effects of e-commerce marketing capabilities (EMC) and big data analytics (BDA) on these relationships. Design/methodology/approach The data were collected from 469 managers working in Pakistan’s trade- and technology-oriented small and medium-sized industries and analyzed through SPSS and SmartPLS software by using the partial least squares structural equation modeling technique to conduct empirical research. Findings This study illustrates the significance of IDC/digital platform capabilities to enhance the DE of Pakistan’s small and medium-sized enterprise (SME) sector through the mediation of IR. The study’s results also include moderating aspects of EMC and BDA, which helps to explain how these processes work in concert to promote operational excellence, innovation and market responsiveness. Practical implications For managers of SME firms, the study delivers practical insights on the ways to optimize organizational resources strategically aligned with digital transformation opportunities. SME firms' executive management should invest in their digital marketing to target more segments of the market and convert customers through specific promotional activities in an e-commerce model. These implications have reflexivity among other organizational stakeholders and highlight a collaborative approach for leveraging DE and resilience, particularly in the SME sector in Pakistan. Originality/value The current study presents practical, theory-based guidance for SMEs navigating digital transformation. By applying dynamic capability theory, we identify actionable strategies that help business owners adopt and compete effectively in today’s global digital economy.
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Nasir et al. (2025) studied this question.
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