The Mediating Effect of Digital Transformation Extent on the Relationship between Managerial Proactiveness and Business Resilience: Government Intervention as a Moderator

Purpose: Small and medium-sized enterprises (SMEs) is one of the important sectors in a country. In this competitive global business climate, the unexpected changes and turbulent events are causing major challenged for the SMEs. Hence, this study is aimed to analyse the mediating effect of digital transformation on the relationship between managerial proactiveness and business resilience. Further, the role of government intervention is used to moderate the relationship between digital transformation and business resilience. Design/methodology/approach: A total of 86 samples were collected via online survey methods. Data was analysed using SmartPLS version 3 software. A two-stage analytical approach was pursued to test the construct validity, reliability, hypotheses and model. Findings: The statistical result reveals that managerial proactiveness is positively related to digital transformation. Additionally, managerial proactiveness and digital transformation are positively related to business resilience. Digital transformation significantly mediates the relationship between managerial proactiveness and business resilience. However, Government intervention is not significant moderate the relationship between digital transformation and business resilience. Research limitations/implications: Several limitations and implications were highlighted to various stakeholders such as researchers, business practitioners, SMEs associations, SMEs and relevant ministries. Practical implications: Several implications were offered to enhance the managerial proactiveness and adoption of digital transformation. Originality/value: This study has confirmed that digital transformation is vital for SMEs to remain resilient in times of turbulent environment. Keywords: managerial proactiveness, digital transformation, government intervention, business resilience, SMEs, turbulent event
1.0 Introduction Small and medium-sized enterprises (SMEs) is one of the essential sectors which fostering growth in gross domestic income, employment and a nation's economy. Lately, the global crisis due [...]