Environmental Dynamism, Digitalization, and Digital Capability: Explaining Small FirmsPerformance in Ecuador

Fabrizio Noboa; AFM Jalal Ahamed

doi:10.18046/j.estger.2025.176.7392

Environmental Dynamism, Digitalization, and Digital Capability: Explaining Small FirmsPerformance in Ecuador

Authors

Fabrizio Noboa Full-time professor, College of Business Administration, Universidad San Francisco de Quito, USFQ, Quito, Ecuador. https://orcid.org/0000-0003-3298-1205
AFM Jalal Ahamed Associate Professor, School of Business, University of Skövde, Skövde, Sweden. https://orcid.org/0000-0002-6212-7643

DOI:

https://doi.org/10.18046/j.estger.2025.176.7392

Keywords:

environmental dynamism, digitalization, digital capability, small and medium-sized enter-prises

Abstract

Despite growing interest in digital transformation among small and medium-sized enterprises, understanding how they use digital technologies to enhance competitiveness, partic-ularly in emerging markets, is still limited. Grounded in the resource-based view, resource orchestration theory, and digital transformation literature, this study explores how environ-mental dynamism influences firm performance,
focusing on the mediating role of digitaliza-tion and digital capability in Ecuadorian companies. To test our hypotheses, we used structural equation modeling with survey data from 109 managers. Our findings indicate that digitalization and digital capability mediate the relationship between environmental dyna-mism and performance, emphasizing the need to integrate technological and managerial dimensions to face
digital transformation. This topic is relevant because small firms face greater challenges for technological adoption.

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Published

2026-01-21

Issue

Vol. 41 No 176 Jul - Sep 2025

Section

Research articles

License

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How to Cite

Environmental Dynamism, Digitalization, and Digital Capability: Explaining Small FirmsPerformance in Ecuador. (2026). Estudios Gerenciales, 41(176), 337-348. https://doi.org/10.18046/j.estger.2025.176.7392