Unlocking Innovation Potential in Pakistani SMEs: The Interconnected Role of Strategic Digital Orientation, Digital Governance Maturity, and Stewardship
Sep 2026· International Journal of Trends and Innovations in Business & Social Sciences· Vol 4, pp. 176-186· 0 citations
TL;DR
The results indicated that SDO shows significant improvement in DGM displaying a positive effect on IP, and Stewardship enhances the impact of DGM on IP.
Abstract
This study aims to explore the relationship between Strategic Digital Orientation (SDO) and Innovation Performance (IP). It contains the mediating role of Digital Governance Maturity (DGM) between SDO and IP, whereas moderating effect of Stewardship was measured on the relationship between DGM and IP. A quantitative research design was used with survey questionnaires using the validated measurement scales for SME managers in various industries. For analysis of the relationships between constructs, Structural Equation Modelling (PLS-SEM) was used. The results indicated that SDO shows significant improvement in DGM displaying a positive effect on IP. Furthermore, Stewardship enhances the impact of DGM on IP. The study makes a contribution to the theory by combining the Resource-Based View and Stewardship Theory to explain the IP of SMEs and has practical implications for managers and policymakers intend to improve digital governance and innovation capabilities in a context of emerging market.
This study investigates how social capital theory (SCT) and diffusion of innovation theory (DOI) within a cluster can facilitate the SP of SMEs and reveals the innovative potential of SME clusters and the role that SCT and DOI play in helping sustainable performance through OI and DC.
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