Ritha F. Dalimunthe, Arlina Nurbaity Lubis, T. Teviana, Muhammad Bangun Siregar, Ramadani
This study explores the mediating role of digitalization in the relationship between human resource transformation and competitive advantage in women-led small and medium enterprises. The analysis utilized data from 120 women entrepreneurs across diverse sectors, with the study's methodology incorporating Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that competitive advantage and human resource transformation collectively account for 70.3% of the variance in business performance (R² = 0.703), underscoring their critical Influence. However, the expected mediating effect of digitalization on BP was discovered to be non-significant (P = 0.094), suggesting its role might be more supportive than transformative in this context. Notwithstanding this finding, digitalization remains a pivotal catalyst for operational efficiency and innovation. This study contributes to extant scholarship by drawing upon the Resource-Based View and Dynamic Capabilities Theory, offering novel insights into the strategic importance of digital tools and human capital in women-led Small and Medium Enterprises. © 2026 by the authors; licensee Growing Science, Canada.
Universitas Sumatera Utara, Medan, Indonesia; Universitas Negeri Medan, Medan, Indonesia; Universitas Nahdlatul Ulama Sumatera Utara, Medan, Indonesia
