Brand Equity and Market Agility in the Wake of Digital Transformation: Lessons from Post-Pandemic Hospitality SMEs

• Abbas Ahsun

  Texas University

  Author

The COVID-19 pandemic fundamentally disrupted the hospitality sector, accelerating digital transformation as a survival imperative for Small and Medium Enterprises (SMEs). While prior studies have examined digital adoption in isolation, limited empirical evidence exists on how digital transformation intertwines brand equity and market agility to drive post-pandemic resilience. This study addresses this gap by investigating the mediating role of market agility in the relationship between digital transformation and brand equity among hospitality SMEs. Using a quantitative explanatory design, data were collected from 384 owners and managers of hospitality SMEs in Lagos, Nairobi, and Accra between January 2024 and March 2025. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that digital transformation has a significant positive effect on both market agility (β = 0.62, p < 0.001) and brand equity (β = 0.41, p < 0.001). Market agility partially mediates this relationship, accounting for 38.6% of the total effect. The integrated model explains 89.4% of the variance in brand equity (R² = 0.894) and demonstrates a predictive accuracy (Q²) of 0.67. The study concludes that digital capabilities alone are insufficient; their translation into agile market responses is what sustains brand equity in volatile environments. Practically, hospitality SMEs are urged to invest in integrated digital CRM and real-time analytics to enhance responsiveness. Theoretically, the study extends Dynamic Capabilities Theory by positioning market agility as a critical dynamic capability linking digital resources to brand-based competitive advantage.

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Copyright (c) 2026 Abbas Ahsun (Author)

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