The Effect of Digitalization on SME Performance in UAE: The Mediating Role of Market Orientation

Today digitalization has become part of the business plan of small and medium enterprises (SMEs). Whereas market orientation could influence this relationship. Hence, the aim of this study is to examine the relationships between digitalization and SME performance with mediating role of market orientation in the United Arab Emirates (UAE). Quantitative methodology was applied to test the hypothesized relationships and validate the proposed conceptual framework. Questionnaire was used to collect data from a sample of 450 executive managers. Simple random sampling technique was applied in the survey procedure. SEM analysis was utilized to conduct data analysis. The results showed that digitalization has a significant effect on SME performance. In addition, the result reveals that market orientation partially mediates this relationship. The outcome of this paper contributes to the theory of resource-based theory, and provide novel evidence on the substantial role of digitalization in fostering the performance of SMEs in the UAE market. Therefore, policymakers in the business and trade sector should consider the findings of this paper in developing strategic future plans for developing the performance of SMEs.