Enhancing Creativity and Sustainable Competitive Advantage Through Data-Driven Decision-Making and Digital Leadership

Digital transformation is essential for businesses to maintain creativity and competitiveness. This study explores how digital transformation impacts corporate creativity and competitive advantage in SMEs by leveraging the TOE framework and RBT. Our model integrates both internal and external factors, focusing on data-driven decision-making and digital leadership. Data from 537 SMEs were analyzed using PLS-SEM, IPMA, and fsQCA. Results indicate that technological competence, organizational support, and government support positively influence digital integration, enhancing data-driven decision-making. This decision-making process significantly boosts sustainable competitive advantage and organizational creativity. Digital leadership positively moderates these relationships. Our findings provide actionable insights for SMEs leveraging digital transformation for sustained competitive advantage and creativity. The unique long-term value of this research lies in its comprehensive examination of how digital transformation facilitates both creativity and sustainablecompetitive advantage in SMEs. This study offers a novel theoretical model and empirical evidence that can guide international practitioners and scholars in understanding and implementing effective digital transformation strategies.