A Moderated Model of Digital Transformation in SMEs: Digital Competencies, Digital HRM, and Organizational Culture

Ernesto Wladimir Rangel Luzuriaga

doi:10.64923/ceniiac.e0010

Authors

Ernesto Wladimir Rangel Luzuriaga Universidad Internacional del Ecuador https://orcid.org/0000-0002-3003-3431

DOI:

https://doi.org/10.64923/ceniiac.e0010

Keywords:

digital transformation, digital competencies, digital human resource management, organizational culture, SMEs, emerging economies, Ecuador

Abstract

Digital transformation has become a strategic priority for small and medium-sized enterprises (SMEs), particularly in emerging economies where structural constraints intensify the challenges of digitalization. This study analyzes how digital competencies and digital human resource management influence the digital transformation of SMEs in Ecuador, considering the role of organizational culture. A quantitative approach was adopted with a non-experimental, cross-sectional, and explanatory design. Data were collected through an online survey administered between August and October 2025 to a sample of 260 managers and employees of SMEs. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that digital competencies exert a strong effect on digital human resource management and a direct effect on digital transformation. In contrast, digital human resource management does not show a significant direct effect on digital transformation, although it substantially influences organizational culture. Likewise, organizational culture does not moderate the relationship between digital human resource management and digital transformation. These findings highlight the central role of digital competencies as the main driver of digital transformation in SMEs and provide empirical evidence from an underexplored emerging-economy context.

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