A model of barriers, drivers, government responses, recovery expectations and expected future changes in SME performance: digitalisation as a moderator

Abstract

Purpose

The aim of this paper is to examine a model that combines barriers, drivers, government responses, recovery expectations, expected future changes in performance and the extent of digitalisation as a moderator in SMEs.

Design/methodology/approach

This study uses exploratory causal methodologies. The study employs a quantitative methodology based on utilising an electronic questionnaire to gather the opinions of home workers and entrepreneurs in Jordan. The cross-sectional data collection approach was conducted in a single time frame, and a total of 1,179 valid questionnaires were analysed using Smart PLS along with SPSS.

Findings

The findings demonstrate that the barriers lower the expectations of recovering performance, whilst the drivers and government responses raise the expectations of both performance recovery and change in performance. Concerning digitalisation, this study discovered that firms going digital had a significant positive direct impact on expectations of performance change. This paper also found that expectations of performance change are significantly positively impacted by the interaction between drivers and digitalisation. However, the moderating influence of digitalisation on the positive impact of government responses on expectations of performance change was not verified.

Practical implications

The study's conclusions led to the formulation of several policy recommendations aimed at easing the burden on SMEs.

Originality/value

This study adds something new to the body of knowledge on SMEs by investigating the effects of barriers, drivers and government responses on expectations of performance recovery and the expected future change in performance moderated by digitalisation.