Digital Business Ecosystem Factors and Business Performance in Saudi Arabia: The Mediating Role of Technology Integration
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Purpose: This study aims to examine how digital business ecosystem factors influence business performance among Saudi Arabian SMEs, with particular emphasis on technology integration's mediating role. The research investigates the relationships between Digital Entrepreneurship Adoption, Market Culture, Regional Networks, and their impact on Business Performance through Technology Integration. Design/methodology/approach: The study employs a quantitative research design using structural equation modeling (PLS-SEM). Data was collected through a structured questionnaire from 188 SME owners and entrepreneurs in Saudi Arabia. The measurement model was v alidated through reliability and validity tests, followed by hypothesis testing using path analysis. The research framework examines both direct relationships and mediating effects. Findings: The results reveal significant direct effects of Digital Entrepreneurship Adoption (β = 0.388, p < 0.01) and Market Culture (β = 0.221, p < 0.01) on Business Performance. Market Culture shows the strongest influence on Technology Integration (β = 0.625, p < 0.01), followed by Regional Networks (β = 0.194, p < 0.01). Technology Integration demonstrates significant mediating effects, particularly strong between Market Culture and Business Performance (β = 0.152, p < 0.01). Research limitations/implications: The study's cross-sectional nature limits causal inferences. The focus on Saudi Arabian SMEs may affect generalizability to other contexts. Future research should consider longitudinal designs and broader geographical coverage. Originality/value: This study sheds light on how digital business ecosystem factors affect Saudi business performance. It uniquely examines technology integration as a mediating mechanism, advancing digital transformation theory and practice. The findings can help policymakers and business leaders create digital transformation strategies that consider technological and cultural factors.
Abstract
Purpose: This study aims to examine how digital business ecosystem factors influence business performance among Saudi Arabian SMEs, with particular emphasis on technology integration's mediating role. The research investigates the relationships between Digital Entrepreneurship Adoption, Market Culture, Regional Networks, and their impact on Business Performance through Technology Integration. Design/methodology/approach: The study employs a quantitative research design using structural equation modeling (PLS-SEM). Data was collected through a structured questionnaire from 188 SME owners and entrepreneurs in Saudi Arabia. The measurement model was v alidated through reliability and validity tests, followed by hypothesis testing using path analysis. The research framework examines both direct relationships and mediating effects. Findings: The results reveal significant direct effects of Digital Entrepreneurship Adoption (β = 0.388, p < 0.01) and Market Culture (β = 0.221, p < 0.01) on Business Performance. Market Culture shows the strongest influence on Technology Integration (β = 0.625, p < 0.01), followed by Regional Networks (β = 0.194, p < 0.01). Technology Integration demonstrates significant mediating effects, particularly strong between Market Culture and Business Performance (β = 0.152, p < 0.01). Research limitations/implications: The study's cross-sectional nature limits causal inferences. The focus on Saudi Arabian SMEs may affect generalizability to other contexts. Future research should consider longitudinal designs and broader geographical coverage. Originality/value: This study sheds light on how digital business ecosystem factors affect Saudi business performance. It uniquely examines technology integration as a mediating mechanism, advancing digital transformation theory and practice. The findings can help policymakers and business leaders create digital transformation strategies that consider technological and cultural factors.