Fuoye Journal Of Management | Innovation And Entrepreneurship

Digital Transformation and Entrepreneurial Resilience: The Mediating Role of Business Model Innovation in Nigerian SMEs

For example, an SME using a WhatsApp Business account (DT) without shifting from a transactional to a subscription-based model (BMI) remains fragile. This aligns with Teece’s (2010) assertion that BMI is the firm-level equivalent of adaptation in evolutionary economics. fuoye journal of management innovation and entrepreneurship

[Your Name/Affiliation] Contact: [Email Address] Submitted to: FUOYE Journal of Management, Innovation and Entrepreneurship (FJMIE) Date: [Current Date] Abstract The high failure rate of Small and Medium Enterprises (SMEs) in Nigeria within their first five years necessitates a deeper understanding of resilience drivers. This study examines the effect of digital transformation on the entrepreneurial resilience of SMEs in Southwest Nigeria, with business model innovation as a mediating variable. Drawing on Dynamic Capabilities Theory, a quantitative survey of 384 SME owners was conducted. Data were analyzed using Structural Equation Modeling (SEM). Findings reveal that digital transformation has a significant positive effect on entrepreneurial resilience, but this effect is partially mediated by business model innovation. Specifically, SMEs that leverage artificial intelligence tools and cloud-based platforms demonstrate a 47% higher adaptive capacity when they simultaneously reconfigure their value proposition and revenue streams. The study concludes that technology adoption alone is insufficient; resilience is contingent on the entrepreneur's ability to innovate the business model itself. Recommendations include policy support for digital upskilling and incubation hubs that focus on business model experimentation. This study examines the effect of digital transformation

Theoretically, this paper extends Dynamic Capabilities Theory by showing that sensing (digital tools) requires seizing (BMI) to achieve transforming (resilience). Practically, the finding challenges the "technology-first" narrative common in Nigerian policy circles. Conclusion: Digital transformation is a necessary but insufficient condition for entrepreneurial resilience among Nigerian SMEs. Business model innovation is the engine that converts digital investments into adaptive capacity. it includes proactive adaptation

In the SME context, DT spans three levels: digitization (analog to digital), digitalization (process improvement), and digital transformation (strategic organizational change) (Rogers, 2016). Nigerian SMEs are largely at the first two levels.

The missing link appears to be . Many Nigerian SMEs adopt digital tools (e.g., POS machines, social media ads) without changing how they create, deliver, and capture value. This study, therefore, asks: Does business model innovation mediate the relationship between digital transformation and entrepreneurial resilience in Nigerian SMEs? By answering this, the paper contributes to the nascent entrepreneurship literature specific to Ekiti State and the FUOYE academic community. 3. Literature Review and Hypotheses 2.1 Entrepreneurial Resilience Resilience is not merely a personality trait but a dynamic capability. For entrepreneurs, it includes proactive adaptation, resource reconfiguration, and opportunity creation during crises (Duchek, 2020).