1.1 Background to the Study
In the ever-evolving landscape of business, the concept of E-Business has transcended traditional paradigms, ushering in a new era known as E-Business 5.0. This transformation, driven by the infusion of smart technologies and innovations, has led to a fundamental shift in the operational dynamics of organizations. The advent of Industry 4.0 and the confluence of digitalization, automation, and data-driven decision-making have had profound effects on businesses, particularly on Small and Medium-sized Enterprises (SMEs) (Ballester, Malo, & Paché, 2020). This paradigm shift is underpinned by the idea that organizations must adapt and integrate advanced technologies to remain competitive and agile (Görög, Zabál, & Szűts, 2021).
The theoretical underpinning of this transformation can be traced to the resource-based view (RBV) of firms (Barney, 1991; Barney, 1995; Barney & Arikan, 2001). This view asserts that organizations gain a sustained competitive advantage by leveraging their unique and valuable resources (Wernerfelt, 1984). In the context of E-Business 5.0, it translates to the strategic utilization of innovative technologies and smart solutions, which become the resources for creating and sustaining superior performance (Peteraf, 1993).
Furthermore, the role of digital transformation in organizational performance, particularly in the context of Industry 4.0, has gained prominence (Park, 2020). A study by Islam et al. (2022) reveals the intricate relationships among digital innovation, digital transformation, and organizational performance, underscoring the pivotal role of digital leadership. These insights emphasize that the effective adoption and integration of digital technologies can catalyze performance improvements and innovation within organizations.
In this context, the integration of digital technologies, as exemplified by Industry 4.0 and E-Business 5.0, presents a compelling area of study. The strategic adoption of these technologies offers the potential for enhanced competitiveness and sustainable development, particularly among SMEs (Ghobakhloo, Hong, Sabouri, & Zulkifli, 2017; Gupta, Kumar, & Kumar, 2021). To this end, there is an increasing recognition of the need for strategies that facilitate successful information technology adoption and digital transformation (Kamble, Gunasekaran, Gawankar, & Papadopoulos, 2019).
1.2 Purpose of the Study
The purpose of this research is to investigate the transformative impact of smart technologies and innovations in the context of E-Business 5.0, particularly concerning their integration into Small and Medium-sized Enterprises (SMEs). The study aims to explore how the strategic adoption of digital technologies and smart solutions can lead to competitive advantage and sustainable performance, aligning with the resource-based view (RBV) of firms. It will delve into the relationships between digital innovation, digital transformation, and organizational performance, with a particular focus on the role of digital leadership in facilitating this transformation.