Cultural Determinants of Digital Transformation and Organizational Agility: A Multi-Country Study of European SMEs

• Abey Litty

  Texas University

  Author

European small and medium-sized enterprises (SMEs) face increasing pressure to undergo digital transformation while maintaining organizational agility in volatile markets. Despite growing recognition that cultural factors shape transformation outcomes, existing research has largely overlooked how national and organizational cultural dimensions jointly determine agility capabilities across different European contexts. This study addresses this gap by developing and validating a culture-sensitive predictive framework for organizational agility in European SMEs. Using a mixed-methods design combining survey data from 847 SMEs across six European countries with configurational analysis, the study identifies cultural configurations that predict high agility with 89.4% accuracy. Findings reveal that uncertainty avoidance and power distance interact with digital maturity to shape agility outcomes, with organizational learning culture serving as a critical mediator. The study contributes a validated cultural determinant model and offers practical guidance for SME managers and policymakers seeking to leverage cultural strengths in digital transformation initiatives.

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Copyright (c) 2026 Abey Litty (Author)

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