The Impact of Enterprise Digitalization on Competitive Advantage among Small and Medium Enterprises: The Mediating Role of Innovation رسالة دكتوراة

Abstract

This study aimed to analyze the effects of Enterprise Digitalization (ED) on Competitive Advantage (CA) among Small and Medium-sized Enterprises (SMEs) in Palestine, and to conduct an in-depth investigation into the mediating role of Innovation. This objective is predetermined by the increased awareness that digital technologies have already become an essential element of business competitiveness, and the mechanisms that underlie their practical use and their efficiency in conditions of limited resources still receive scant attention. The methodology of this study was quantitative, as the research objectives align with it. In this way, the core variables, which are digital transformation, innovation, and competitive advantage, can be measured on a standard and analyzed with statistical instruments (Smart-PLS). The unit of analysis is the small- and medium-sized enterprise (SME) based in the West Bank, Palestine. An enterprise is a specialized analytical unit for studying the relationships among digital transformation, innovation, and competitive advantage. The sample comprises all SMEs in the West Bank that embrace digital transformation and view innovation as an essential component of business strategy. To obtain accurate, informative data, key informants were selected from senior and executive managers of each SME. The study's outcomes show that digital transformation and innovation are essential levers for advancing competitive advantage for SMEs, and that innovation partially mediates the relationship between digitization and competitiveness. Overall, the study observes that digital transformation, as an investment object, cannot be regarded as an operational object but rather as a strategy to facilitate innovation, establish a sustainable competitive advantage, and increase companies' ability to adapt to future processes