Influence of digital strategy on digital transformation of small and medium-sized enterprises in Korea: the serial mediation effects of big data analytics capability and data-driven insight

Purpose A strong digital strategy is crucial for guiding digital innovation and ensuring successful digital transformation for small and medium-sized enterprises (SMEs) in today’s environment. This study investigates the relationship between digital strategy and digital transformation, emphasizing the serial mediation of big data analytics capability and data-driven insight. Design/methodology/approach We collected survey data from a sample of 192 SMEs operating in Korea. This research examined the mediating role of big data analytics capability and the further mediating effect of data-driven insight using the Partial Least Squares Structural Equation Modeling technique. Findings The empirical results demonstrate that (1) digital strategy had a positive impact on digital transformation; (2) big data analytics capability played a mediator in the relationship between digital strategy and digital transformation; (3) data-driven insight plays an additional mediating role, reinforcing the impact of big data analytics capability on digital transformation; and (4) the relationship between digital strategy and digital transformation is sequentially mediated by big data analytics capability and data-driven insight. Originality/value This study contributes to the present digital innovation and strategy literature by illustrating how SMEs can leverage big data analytics capability and data-driven insight to maximize the effectiveness of their digital strategy. The findings provide theoretical contributions to digital strategy research and offer practical insights for (SMEs aiming to accelerate digital transformation in competitive markets.