Entrepreneurial alertness, managerial networks and innovation culture as catalysts to sustained small and medium-sized enterprise digital transformation

Purpose In an environment characterised by numerous technological breakthroughs, entrepreneurial alertness (EA), innovation culture and the development of managerial networks (MN) are critical catalysts to the digital transformation of small and medium-sized enterprises (SMEs). Moreover, SMEs may struggle to compete, remain relevant and survive in the current environment without undergoing digital transformation. This study used a moderated mediation approach to investigate whether SMEs’ innovation culture moderated the indirect relationship between EA and SMEs’ digital transformation through MN. The purpose of this study is to examine the moderating role of innovation culture in the indirect relationship between EA and SMEs’ digital transformation through MN using a moderated mediation framework. Design/methodology/approach This study used a quantitative method, grounded in a positivist research paradigm and a deductive approach, to clarify its explanatory and cross-sectional nature. A sample of 669 SMEs participated in this study using an online survey. Hierarchical regression analysis and the Hayes Process Macro Model 7 were used to test for moderated mediation. Findings The study determined that an increase in SME innovation culture further reinforces the impact of MN on the relationship between EA and SME digital transformation. Practical implications Active participation in digital forums, open communication and selecting strategic partners, such as financial technology firms, could help SME owners/managers accelerate digital transformation within their respective entities. Originality/value This study’s findings significantly contribute to theory and practice by revealing complex interrelationships among SMEs’ digital transformation predictors, namely, EA, innovation culture and MN, each playing a distinct role in driving SME digital transformation.