Digital Transformation in Micro and Small Enterprises: Driving Agility and Resilience in the Post-Pandemic Recovery Phase

• Billy Elly

  Lautech

  Author

The COVID-19 pandemic exposed the acute vulnerability of micro and small enterprises (MSEs) to external shocks while simultaneously accelerating their adoption of digital technologies. However, the mechanisms through which digital transformation translates into organizational agility and resilience remain insufficiently theorized and empirically validated, particularly regarding the sequential mediating pathways that connect technology adoption to post-pandemic recovery outcomes. This study develops and tests a framework positioning organizational agility as a critical mediating mechanism between digital transformation and enterprise resilience, drawing on dynamic capabilities theory and organizational information processing theory. Using survey data from 312 MSEs across three emerging-market economies, the research employs structural equation modeling with bootstrapped mediation analysis. The findings demonstrate that digital transformation exerts a significant indirect effect on resilience through agility (β = 0.347, p < 0.001), with the full model explaining 67.3% of variance in resilience outcomes. Notably, 89.4% of enterprises classified as high-resilience had implemented at least three digital technology categories, compared to 41.2% of low-resilience firms. The study contributes a validated sequential mediation framework and offers actionable guidance for MSE managers and policymakers seeking to leverage digitalization for sustainable recovery.

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Copyright (c) 2026 Billy Elly (Author)

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