Distinctive influence of entrepreneurs’ socioeconomic and political statuses on the digital transformation of SMEs in China

ABSTRACTDigital transformation offers incredible opportunities for small- and medium-sized enterprises (SMEs). However, the lack of resources is a major constraint for SMEs’ digital transformation, which requires entrepreneurs to play a role in seizing opportunities. Building upon the status theory, this study explored how two types of entrepreneur status, namely, socioeconomic and political statuses, can differently affect SMEs’ digital transformation in China. The regression analysis of a national survey of 4566 Chinese SMEs suggests that entrepreneurs’ socioeconomic status has a positive effect, whereas their political status has a U-shaped effect on SMEs’ digital transformation. We also find that the effect of entrepreneurs’ socioeconomic status is more positive for new ventures, whereas the U-shaped effect of entrepreneurs’ political status is more profound for firms with stronger resource endowments. These findings in the context of emerging economies shed light on drivers of SMEs’ digital transformation from the multiple status perspective.KEYWORDS: Socioeconomic statuspolitical statusdigital transformationsmall- and medium-sized enterprises (SMEs) Disclosure statementNo potential conflict of interest was reported by the author(s).Data availability statementAll data that support the findings of this study are included in this manuscript and its supplementary information files.Additional informationFundingThis work was supported by the National Social Science Foundation of China [grant number 20BGL203].Notes on contributorsQian XuQian Xu (xqnuaa09@nuaa.edu.cn) is a PhD candidate at the College of Economics and Management, Nanjing University of Aeronautics and Astronautics. Her research focuses on digital transformation and innovation strategies for SMEs.Yapu ZhaoYapu Zhao (zhaoyapu@hotmail.com) is an associate professor at the College of Economics and Management, Nanjing University of Aeronautics and Astronautics. His main research interests are innovation and entrepreneurship, digital strategy. He has published papers on such journals as Industrial and Marketing Management, Journal of Technology Transfer, and Management and Organization Review.Wanming ChenWanming Chen (cwm625@nuaa.edu.cn) is a professor at the College of Economics and Management, Nanjing University of Aeronautics and Astronautics. His research interests revolve around the analysis of innovation and entrepreneurship strategies.Yuling ShiYuling Shi (yuling_shi@nuaa.edu.cn) is a PhD candidate at the College of Economics and Management, Nanjing University of Aeronautics and Astronautics. Her research focuses on entrepreneur status and enterprise green innovation.