Digital literacy, digital intelligence and small and medium enterprises’ (SMEs) sustainability: The mediating role of digital technology usage

Abstract

Small and medium enterprises (SMEs) are crucial in many developing countries globally. Despite their notable contributions to both national and international development, SMEs face challenges in adapting to the circular economy due to resource limitations. This study sought to examine how digital literacy and digital intelligence influence the business sustainability of SMEs in Ghana. The study adopted the cross-sectional research design and survey approach. A structured questionnaire was used to collect data from 213 SMEs in Kumasi Metropolis. Structural Equation Modeling (SEM) was used as the analysis technique, and Amos (v. 23) was used as the analysis software. The study found statistically significant positive effects of digital literacy on business sustainability. Digital intelligence was also found to have a statistically significant positive effect on business sustainability. Moreover, digital technology usage was found to partially mediate the nexus between digital literacy and business sustainability. Similarly, digital technology usage was found to partially mediate the nexus between digital intelligence and business sustainability. In light of the study's findings, managers of SMEs are expected to digitalize their value chain in order to improve their sustainability performance. This study pushes the frontiers of sustainability literature by examining how digitalization influences business sustainability in the context of an emerging economy.