Digital transformation in SMEs: the impacts of strategic orientations and exploratory search strategies

Purpose This paper aims to investigate the influences of strategic orientations and exploratory search strategies on the digital transformation (DT) of small and medium-sized enterprises (SMEs). Design/methodology/approach This study analyzes data from 230 Chinese SMEs using partial least squares structural equation modeling to assess the impacts of strategic orientations and exploratory search strategies on DT. Findings The results indicate that both market and technology orientations drive search within and outside organizational fields. Notably, search outside organizational field significantly facilitates while search within organizational field hinders SMEs’ DT. Market orientation’s effect on DT is fully mediated by search outside organizational field while technology orientation directly influences DT. Furthermore, the negative impact of search within organizational field on DT is more significant in manufacturing firms compared to nonmanufacturing firms. Originality/value This study redefines market–technology orientations as synergistic drivers of DT, challenging their traditional trade-off framing. It reveals how SMEs’ search strategies (within vs outside fields) differently influence DT. Practically, SMEs must strategically balance strategic orientations and search strategies, while manufacturers should mitigate internal search risks through engineer rotation. Policymakers are urged to foster cross-industry digital experimentation platforms and simplify intellectual property frameworks to accelerate SMEs’ DT.