A review of entrepreneurial orientation and digital transformation in SMEs: toward a multilevel framework

Purpose This paper aims to provide a comprehensive review of the role of entrepreneurial orientation (EO) in driving digital transformation (DT) in small and medium-sized enterprises (SMEs). It seeks to fill gaps in the current literature on how EO specifically helps SMEs to meet the challenges of digitalization, foster innovation and maintain a competitive edge in an increasingly digitalized market. Design/methodology/approach Adopting a systematic literature review approach, this study reviews 88 scholarly articles published between 2017 and 2024. The analysis combines both quantitative bibliometric data and qualitative textometric insights to reveal patterns, themes and gaps in existing research. Findings The study highlights that EO serves as a major accelerator for successful DT in SMEs as it allows businesses to actively adopt and integrate new digital technologies. However, it also emphasizes that while EO-driven firms exhibit greater agility and innovation, its success in DT is contingent on organizational readiness, resource availability and external market dynamics. The findings also indicate that SMEs often struggle with scaling digital initiatives due to limited capabilities, requiring a balance between EO and strategic foresight. Originality/value This paper provides a novel contribution by focusing specifically on the intersection of EO and DT in SMEs, a context often overlooked in mainstream DT research. It offers practical insights for SME leaders on how to align entrepreneurial behaviors with digital strategies to enhance long-term resilience and innovation, while also addressing the unique challenges SMEs face in the digital age.