Dynamic capabilities and data-driven culture for digital transformation: evidence from agri-food SMEs

Purpose This study aims to explore the role of dynamic capabilities – i.e. big data analytics capabilities (BDAC) and digital capabilities (DC) – in shaping a data-driven culture (DDC), arguing that these dimensions contribute to digital transformation (DT), using Italian agri-food small and medium-sized enterprises (SMEs) as a case. Design/methodology/approach This study analyzes 300 survey responses on BDAC, DC, DDC, and DT gathered from Italian agri-food SMEs using covariance-based structural equation modeling. Findings This study reveals that dynamic capabilities, particularly BDAC and DC, play a positive role in shaping a DDC, which, in turn, positively supports DT. Upon deeper scrutiny, this study shows that BDAC exhibits a particularly strong effect, implying that investments in analytical competencies can significantly enhance firms’ readiness to leverage digital opportunities, and when complemented by supportive cultural practices oriented toward data-driven decision-making, these capabilities strengthen the pursuit of DT, especially among agri-food SMEs. Originality/value This study makes a novel contribution by shifting the attention toward capabilities and cultures essential for DT, thereby moving beyond the narrow focus on technological adoption that characterizes much of the existing literature. The insights from this study underscore that strong dynamic capabilities and a deliberate emphasis on data-driven mindsets enable agri-food SMEs to navigate DT more effectively.