AN EMPIRICAL INVESTIGATION OF THE IMPACT OF DIGITAL ADOPTION ON SMES' CURRENT AND FUTURE BUSINESS PERFORMANCE: THE CASE OF QATARI SMES

Abstract

This thesis investigates the relationship between digital technology adoption and the success of Qatari's small and medium-sized enterprises (SMEs). For SMEs, knowing how to adopt to the ever-changing digital landscape is crucial to their current and future success. This thesis undertook a large-scale investigation into that concern by combining in-depth literature assessments with quantitative techniques using an online questionnaire distributed among Qatari SMEs with 248 usable responses. SPSS and Smart PLS 4 software were utilized by applying the Structural Equation Model (SEM) to analyze the collected data statistically. The study discovered that the digital expertise of business owners, the internal resources, and customer pressure have a significant positive impact on SMEs digital adoption. However, competitors' pressure and government support have no significant positive impact on SMEs digital adoption. In addition, the results showed that digital adoption has a significant positive impact on current business performance and a higher significant positive impact on future business performance. The research also showed how the Technology Readiness Index mediated the many characteristics linked to digital adoption. It mediates the relationship between the enterprise's internal resources, namely, financial and technical resources. On the other hand, none of the other digitalization factors are mediated by the technology readiness index. Moreover, relevant theories such as the Technology Acceptance Model, Innovation Diffusion Theory, and Task Technology Fit Theory were applied to test the digital adoption level. This thesis demonstrates why digital adoption is critical for today's small- and medium-sized businesses. The findings provide helpful information for Qatari business owners, SME advocates, and policymakers. This research lays the groundwork for further studies on the ever-evolving topic of digitalization in SMEs. Ultimately, it emphasizes the importance of developing specialized plans to encourage digital adoption among SMEs and propel them toward long-term growth in the digital age.