From crisis to catalyst: unveiling the impact of information literacy on operational efficiency and organizational performance of SMEs in the digital post-pandemic era

Abstract The pandemic accelerated the digital transformation of SMEs. The purpose of this paper is to develop a theoretical model that explains the impact of Information Literacy (IL) and Digital Literacy (DL) on the Operational Efficiency (OE) and Organizational Performance (OP) of SMEs. Moreover, the relationships between Information capabilities (IC) and Digital capabilities (DC) with IL, DL, OE, and OP were examined. The study used a quantitative research approach. The survey responses of 1288 SME representatives formed the basis for the analysis. This study adopted Structural Equation Modeling (SEM) to examine the validity and reliability of the measurement and structural models. According to the results, IC and DC were positively associated with OP and OE. Significant relationships were also found between IL and DL, and between IC and DC. This points to the often-overlooked fact that IC and DC usually result from deeper aspects of digital transformation. Finally, the study highlights the role of IL as a critical factor for successful digital transformation. Many studies on SMEs consider IC and DC to be the primary sources of successful digital transformation. However, these capabilities are often the result of deeper factors - IL and DL. Our study contributes to uncovering these underlying sources.