Abstract
This study explores how small and medium-sized enterprises (SMEs) build on business networks to develop dynamic capabilities that ultimately foster the adoption of non-disruptive digital technologies (DT). Multiple mediation analysis is used to test this relationship, drawing on cross-industry secondary data from 1470 British SMEs. The results reveal that SMEs rely on business networks to support non-disruptive DT adoption. This relationship is mediated by the parallel effects of three dynamic capabilities (HR, strategic planning, and marketing capabilities). However, the results do not hold for each domain-specific dynamic capability. The mediating effect is particularly driven by marketing capabilities, while HR capabilities negatively affect DT adoption. These findings highlight the underlying mechanisms by which SMEs can enhance their adoption of non-disruptive DT in their daily operations and processes, which have the potential to strengthen their value proposition.
•Internal resource constraints are a major obstacle for SMEs in adopting digital technologies and thus remaining competitive•SMEs rely on the expertise derived from formal business networks to overcome those internal resource constraints•Specific dynamic capabilities mediate the relationship between business networks and digital technology adoption•Interestingly, the mediation is particularly driven by marketing capabilities