Corporate foresight organizational learning and performance: The moderating role of digital transformation and mediating role of innovativeness in SMEs

Abstract

Corporate foresight is a capability that includes any structural or cultural element that enables the company to detect discontinuous change early. The purpose of the present study is to examine the direct impact of corporate foresight, and organizational learning on the performance dynamic of SMEs working in the United Arab Emirates (UAE). In addition, the study tries to analyze the moderating as well as mediating effect of digital transformation and innovativeness on the relationship between exogenous and endogenous constructs. A sample of 576 questionnaires were distributed among the owners/managers of different SMEs working in the region of UAE. However, a final sample of 354 respondents was empirically tested. The data was analyzed through a two-step approach where structural equation modelling (SEM) under SmartPLS was found to be very helpful to examine the direct and indirect relationship between the study variables. The study findings show that there is an insignificant but positive impact of corporate foresight on organizational performance whereas significant impact of organizational learning on organizational performance. Furthermore, the study found evidence for the moderating effect of digital transformation between organizational learning and innovation. Additionally, it is observed that innovativeness mediates the relationship between corporate foresight and performance dynamics. The study findings suggest that for exploring the relationship between corporate foresight, digital transformation, and organization the role of innovation and digital transformation is quite significant. The study findings suggest that both owners and managers at SMEs of UAE should attach more importance to innovative capabilities and digital transformation for achieving higher levels of organizational performance. Policy makers should reasonably consider the direct and indirect effect of study variables while considering high performance at the workplace.