Fuoye Journal Of Management Innovation And Entrepreneurship Guide

Digital Transformation and Entrepreneurial Resilience: The Mediating Role of Business Model Innovation in Nigerian SMEs

[Your Name/Affiliation] Contact: [Email Address] Submitted to: FUOYE Journal of Management, Innovation and Entrepreneurship (FJMIE) Date: [Current Date] Abstract The high failure rate of Small and Medium Enterprises (SMEs) in Nigeria within their first five years necessitates a deeper understanding of resilience drivers. This study examines the effect of digital transformation on the entrepreneurial resilience of SMEs in Southwest Nigeria, with business model innovation as a mediating variable. Drawing on Dynamic Capabilities Theory, a quantitative survey of 384 SME owners was conducted. Data were analyzed using Structural Equation Modeling (SEM). Findings reveal that digital transformation has a significant positive effect on entrepreneurial resilience, but this effect is partially mediated by business model innovation. Specifically, SMEs that leverage artificial intelligence tools and cloud-based platforms demonstrate a 47% higher adaptive capacity when they simultaneously reconfigure their value proposition and revenue streams. The study concludes that technology adoption alone is insufficient; resilience is contingent on the entrepreneur's ability to innovate the business model itself. Recommendations include policy support for digital upskilling and incubation hubs that focus on business model experimentation. fuoye journal of management innovation and entrepreneurship

Table 1: Descriptive Statistics and Correlations | Variable | Mean | SD | 1 | 2 | 3 | | :--- | :--- | :--- | :--- | :--- | :--- | | 1. Digital Transformation | 3.12 | 0.94 | 1 | | | | 2. Business Model Innovation | 2.87 | 0.88 | .621** | 1 | | | 3. Entrepreneurial Resilience | 3.34 | 0.91 | .584** | .703** | 1 | **. Correlation is significant at the 0.01 level (2-tailed). Data were analyzed using Structural Equation Modeling (SEM)

Theoretically, this paper extends Dynamic Capabilities Theory by showing that sensing (digital tools) requires seizing (BMI) to achieve transforming (resilience). Practically, the finding challenges the "technology-first" narrative common in Nigerian policy circles. Conclusion: Digital transformation is a necessary but insufficient condition for entrepreneurial resilience among Nigerian SMEs. Business model innovation is the engine that converts digital investments into adaptive capacity. The study concludes that technology adoption alone is

In the SME context, DT spans three levels: digitization (analog to digital), digitalization (process improvement), and digital transformation (strategic organizational change) (Rogers, 2016). Nigerian SMEs are largely at the first two levels.

Digital Transformation, Entrepreneurial Resilience, Business Model Innovation, Nigerian SMEs, FUOYE, Entrepreneurship. 1. Introduction Entrepreneurship is widely acknowledged as the engine of economic development in emerging economies (Ogunyomi & Bruning, 2016). In Nigeria, SMEs constitute over 96% of all businesses and contribute 48% to the national GDP (SMEDAN, 2022). However, the entrepreneurial landscape in the Federal University Oye-Ekiti (FUOYE) catchment area and Nigeria at large is characterized by chronic vulnerability—economic shocks, policy inconsistencies, and infrastructure deficits frequently cripple nascent ventures.