Digital transformation, organisational capabilities, and SME performance - size matters

This paper aims to reveal organisational capabilities of small and medium-sized enterprises (SMEs) to transform digitally and to explore some differences between enterprises' groups. The study approaches digital transformation as transformative and continuous organisational change facilitated b...

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Main Authors: Irena Mladenova, Zhelyu Vladimirov, Olya Harizanova
Format: Article
Language:English
Published: Alexandru Ioan Cuza University of Iasi 2025-06-01
Series:Eastern Journal of European Studies
Subjects:
Online Access:https://ejes.uaic.ro/articles/EJES2025_1601_10_MLA.pdf
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author Irena Mladenova
Zhelyu Vladimirov
Olya Harizanova
author_facet Irena Mladenova
Zhelyu Vladimirov
Olya Harizanova
author_sort Irena Mladenova
collection DOAJ
description This paper aims to reveal organisational capabilities of small and medium-sized enterprises (SMEs) to transform digitally and to explore some differences between enterprises' groups. The study approaches digital transformation as transformative and continuous organisational change facilitated by digital technologies and describes the capabilities of SMEs to navigate such a change. This research is quantitative and uses data from a sample of 308 SMEs in Bulgaria, collected during October-December 2023. Five composite variables (transformational leadership, organisational flexibility, risk-tolerant culture, digital skills, and digital business intensity) are used to describe SMEs' ability to implement DT-induced organisational change. Based on these variables, a cluster analysis is applied, which delineates four distinct groups of SMEs. The results show that medium-sized firms do much better on all five variables and demonstrate better firm performance than micro-enterprises.
format Article
id doaj-art-28676e77f2d74fa2bda7528dc7b7721b
institution OA Journals
issn 2068-651X
2068-6633
language English
publishDate 2025-06-01
publisher Alexandru Ioan Cuza University of Iasi
record_format Article
series Eastern Journal of European Studies
spelling doaj-art-28676e77f2d74fa2bda7528dc7b7721b2025-08-20T02:35:49ZengAlexandru Ioan Cuza University of IasiEastern Journal of European Studies2068-651X2068-66332025-06-0116121623810.47743/ejes-2025-0110Digital transformation, organisational capabilities, and SME performance - size matters Irena Mladenovahttps://orcid.org/0000-0002-4766-8468Zhelyu Vladimirovhttps://orcid.org/0000-0002-0435-6827Olya Harizanovahttps://orcid.org/0009-0009-3643-4410This paper aims to reveal organisational capabilities of small and medium-sized enterprises (SMEs) to transform digitally and to explore some differences between enterprises' groups. The study approaches digital transformation as transformative and continuous organisational change facilitated by digital technologies and describes the capabilities of SMEs to navigate such a change. This research is quantitative and uses data from a sample of 308 SMEs in Bulgaria, collected during October-December 2023. Five composite variables (transformational leadership, organisational flexibility, risk-tolerant culture, digital skills, and digital business intensity) are used to describe SMEs' ability to implement DT-induced organisational change. Based on these variables, a cluster analysis is applied, which delineates four distinct groups of SMEs. The results show that medium-sized firms do much better on all five variables and demonstrate better firm performance than micro-enterprises.https://ejes.uaic.ro/articles/EJES2025_1601_10_MLA.pdfdigital transformationorganisational capabilitiesorganisational changesmes
spellingShingle Irena Mladenova
Zhelyu Vladimirov
Olya Harizanova
Digital transformation, organisational capabilities, and SME performance - size matters
Eastern Journal of European Studies
digital transformation
organisational capabilities
organisational change
smes
title Digital transformation, organisational capabilities, and SME performance - size matters
title_full Digital transformation, organisational capabilities, and SME performance - size matters
title_fullStr Digital transformation, organisational capabilities, and SME performance - size matters
title_full_unstemmed Digital transformation, organisational capabilities, and SME performance - size matters
title_short Digital transformation, organisational capabilities, and SME performance - size matters
title_sort digital transformation organisational capabilities and sme performance size matters
topic digital transformation
organisational capabilities
organisational change
smes
url https://ejes.uaic.ro/articles/EJES2025_1601_10_MLA.pdf
work_keys_str_mv AT irenamladenova digitaltransformationorganisationalcapabilitiesandsmeperformancesizematters
AT zhelyuvladimirov digitaltransformationorganisationalcapabilitiesandsmeperformancesizematters
AT olyaharizanova digitaltransformationorganisationalcapabilitiesandsmeperformancesizematters