Harnessing technological innovation and digital capabilities for resilience in developing economies

The study aims to examine how technological leapfrogging, as a smart and sustainable adaptation strategy, influences organizational resilience in small and medium-sized manufacturing enterprises (SMEs) of the developing economies. It also highlighted employees' digital capabilities as mediators and serial mediators. It aims to provide a comprehensive understanding of how leapfrogging contributes to organizational resilience, considering the interplay of employees' literacy, experience, and big data analytical capabilities. Data were collected from 212 employees of SMEs in South Korea through a survey. Hypothesis testing was conducted through structural equation modeling in SmartPLS for direct, mediation, and sequential mediation effects. The results revealed that technological leapfrogging positively influences organizational resilience. This relationship is positively mediated by digital experience, but not by digital literacy. However, interestingly, Big Data analytical capabilities as a sequential mediator have significantly mediated the relation between organizational resilience and leapfrogging through digital literacy. This study advances dynamic capability theory by empirical testing of the proposed hypothesis. It highlights the big data analytical capability as a critical factor of leapfrogging, advancing practical and theoretical understanding of digital capabilities and resilience. The findings highlight the importance of investing in competency and literacy development to achieve higher levels of digital maturity and resilience. These strategies also foster adaptability and collaboration, enabling organizations to thrive during disruptions.