Digital Transformation Capabilities and Long-Term Sustainability of SMEs: The Mediating Role of Organizational Agility

Abstract

Grounded in Dynamic Capabilities Theory (DCT) and the Resource-Based View (RBV), this research examined the relationships among Digital Transformation Capabilities (DTC), Organizational Agility (OA), and Long-Term Sustainability (LTS) in small and medium-sized enterprises (SMEs) in Thailand. Using a quantitative cross-sectional design, data were collected via structured questionnaires from 450 SME entrepreneurs and executives selected through stratified random sampling across 12 strata. Structural Equation Modeling (SEM) was conducted to test the conceptual framework. Descriptive findings indicated high overall levels across all variables. Hypothesis testing revealed that DTC has a direct positive influence on long-term sustainability (β = 0.28, p < .001). Furthermore, organizational agility partially mediated the relationship between DTC and LTS (Indirect effect = 0.374,95% CI: [0.285, 0.462], p < .001). Variance Accounted For (VAF) analysis showed that 57.2% of DTC’s total impact on LTS is transmitted through organizational agility, with the model explaining 58.4% of the total variance in long-term sustainability (R² = .584). These findings theoretically extend DCT and RBV to the ESG sustainability domain by demonstrating that technological resources alone are insufficient without agility acting as a dynamic transformation mechanism. Practically, SMEs must balance digital tool adoption with agile organizational restructuring.