Empowering Competitiveness through Digitalization in the Textile SMEs: Evidence from Pakistan
摘要
Understanding how digitalization fosters competitive advantage requires attention in Small and Medium Enterprises (SMEs). This study investigates the impacts of digital transformation and digital leadership on competitive advantage (cost and differential leadership) within the framework of sustainable development (economic, environmental, and social) in Pakistani SMEs. Data was collected through a random sampling method from 396 employees in the Pakistani textile sector, and a two-step PLS-SEM approach was used to estimate the hypothesized relationship. Results indicate that digital transformation and digital leadership are positively associated with competitive advantage,navigating sustainable development. Additionally, digital culture was found to be a significant moderator between sustainable development and cost leadership, but insignificant between sustainable development and differential leadership. Our study offers remarkable theoretical contributions by consolidating fragmented research and provides practical insights for policymakers to design strategies around SMEs. Managers are encouraged to promote strategies to enhance digitalization values in SMEs to drive competitive advantage.