The growth code of SMEs in the digital wave: how innovation, initiative, and management ability drive growth hacking capabilities

Purpose This study aims to investigate the development of growth hacking capability (GHC) in small and medium-sized enterprises (SMEs) and its impact on organisational performance, drawing on the resource-based view (RBV) and dynamic capability theory (DCT). Design/methodology/approach Using a hybrid analytical approach that combines structural equation modelling and artificial neural network, 392 respondents across 51 SMEs in China’s service and manufacturing sectors were surveyed. Findings The findings reveal that innovation (ß = 0.354), initiative (ß = 0.299) and management capability (ß = 0.176) significantly enhance GHC, which, in turn, directly improves organisational performance (ß = 0.342). Although organisational agility does not directly impact performance, it contributes indirectly through GHC. The findings highlight the strategic importance of data-driven decision-making in digital transformation and confirm the mediating role of GHC as a dynamic capability. Research limitations/implications This study is limited by its exclusive focus on Chinese SMEs, thus, suggesting the need for future research that conducts cross-national comparisons and longitudinal analyses. Practical implications Practically, SMEs are encouraged to foster an innovative culture, adopt forward-looking strategic planning and enhance managerial data literacy to cultivate GHC. Theoretically, the integration of the RBV and the DCT offers a novel lens for examining organisational capabilities in the digital era. Originality/value This study introduces GHC as a mediating variable, clarifying how innovation, initiative and managerial capability affect SME performance in digital contexts. It extends the RBV and the DCT to illustrate performance mechanisms.