SMEs Awareness and Preparation for Digital Transformation: Exploring Business Opportunities for Entrepreneurs in Saudi Arabia’s Ha’il Region

Abstract

This study investigates how Saudi SMEs’ awareness and preparation for digital transformation impact their business performance (BP). First and foremost, in this study, we examine the impact of awareness and preparation on business performance using the intention to use (ITU) as an initial mediator. In addition, the researchers also examined the impact of awareness and preparation on business performance through intention to use and Government Support (GS), and later, intention to use and skills as serial mediators. Using a structured questionnaire based on a seven-point Likert scale, data were collected from 68 SMEs in the Ha’il region of Saudi Arabia, one of the Kingdom’s leading economic provinces. The data were analyzed through simple and serial mediation techniques through AMOS-24. The study found that SMEs’ awareness and preparation for digital transformation significantly and positively influenced their intentions to use the technology. The researchers found that intention to use, skills, and government support are significant variables that improve business performance. The research also revealed full-serial mediation between awareness and business performance and preparation and business performance, showing that intention to use and skills and intention to use and government support significantly mediate improving SMEs’ business performance. The study implications provide for SMEs’ successful digital transformation, considering the role of skills and government support, which will help SMEs improve their performance and embrace sustainability in human and economic development in Saudi Arabia. Together with policymakers, SMEs, and researchers, it will also look at the entrepreneurial potential for Saudi nationals in the run-up to Vision 2030.