Digital Investments in Organizational Learning and Entrepreneurial Agility

Organizations practice agility in business processes for competitive advantage through the use of information technology. Yet smaller firms are left out because they cannot afford sophisticated technologies. This study proposes an organizational learning framework that smaller firms can adopt and utilize less sophisticated technologies to identify business opportunities for competitive advantage. We collected data from 151 small and medium-size enterprises and tested our model through structural equation modeling of repeated measures indicators. Our results show that digital business intensity positively influences entrepreneurial agility by increasing entrepreneurial orientation. Entrepreneurial alertness and entrepreneurial orientation both have a significant positive relation with organizational performance.