The intermediary role of digital on the transformation of human resource and competitive advantage in women-led enterprises

This study explores the mediating role of digitalization in the relationship between human resource transformation and competitive advantage in women-led small and medium enterprises. The analysis utilized data from 120 women entrepreneurs across diverse sectors, with the study's methodology incorporating Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that competitive advantage and human resource transformation collectively account for 70.3% of the variance in business performance (R² = 0.703), underscoring their critical Influence. However, the expected mediating effect of digitalization on BP was discovered to be non-significant (P = 0.094), suggesting its role might be more supportive than transformative in this context. Notwithstanding this finding, digitalization remains a pivotal catalyst for operational efficiency and innovation. This study contributes to extant scholarship by drawing upon the Resource-Based View and Dynamic Capabilities Theory, offering novel insights into the strategic importance of digital tools and human capital in women-led Small and Medium Enterprises.