What underpins the strategic change decision of digital transformation? Roles of organizational mindfulness and strategic reconfiguration

Purpose This study empirically explores the potential role of Organizational Mindfulness (OM) in enhancing SMEs' strategic change decision of digitalization by means of Strategic Reconfiguration (SREC). Design/methodology/approach Data were collected from 223 managers of Egyptian small- and medium sized enterprises (SMEs). Data were analyzed using partial least square structural equation modeling with SMART-PLS3. Findings The findings reveal that OM has a significant effect on digital transformation (DT), both directly and indirectly, via the mediation of SREC. Research limitations/implications Only SMEs in the Egyptian manufacturing sector were included in the sample. Therefore, the results for various sectors and nations may vary. Our cross-sectional study was limited to tracing the long-term effects of SREC and OM on DT length. Consequently, a longitudinal study would be beneficial. Only the CEOs provided information. There may be more useful DT data innate to IT executives. Practical implications Managers should regularly consider new digital procedures by reconfiguring internal resources. Managers should be completely involved and cognizant of the state of the work environment without being unduly judgmental or reactive. Managers should observe and proactively respond to emerging changes while being aware of emerging digital technologies. Our results suggest that managers can benefit from investing in establishing a culture of OM. Originality/value This study is the first to empirically investigate the effect of OM on DT, directly or indirectly, through SREC. Based on the current study's results, a novel organizational attention model to strategically pursue DT was developed.