Organizational Drivers of Digital Literacy in Thai SMEs : A Communication Perspective on the Mediating Role of Innovation Capability
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Abstract
Small and medium-sized enterprises (SMEs) are a pillar of Thailand's economic structure, yet technological and innovation-related gaps hinder their digital literacy and communication readiness in a competitive market. In this context, developing organizational capabilities supporting innovation and digital literacy has become increasingly important for SMEs. These capabilities help them respond to the technological change, improve their competitiveness and adapt efficiently to the continuous demands of digital transformation. This study examines whether five antecedent factors, entrepreneurial orientation, transformational leadership, social capital, knowledge process capability, and total quality management practices, affect SME digital literacy through the mediating role of innovation capability. Data were collected from 508 Thai SME owner-managers, chief executive officers, and senior managers using purposive sampling, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that transformational leadership (β = 0.190), social capital (β = 0.101), and total quality management practices (β = 0.135) significantly strengthen innovation capability, which in turn shapes digital literacy outcomes (β = 0.147). Entrepreneurial orientation and knowledge process capability do not exhibit the same direct influence. Innovation capability further mediates the relationship between transformational leadership and digital literacy (β = 0.028) and between total quality management practices and digital literacy (β = 0.020). This mediating role does not extend to entrepreneurial orientation, social capital, or knowledge process capability. Situated within Thailand's collectivist, relational, and development-oriented business culture, this study contributes to the theoretical understanding of SME digital literacy and communication competence. The findings also offer actionable implications for policymakers and practitioners.
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