DIGITAL ECONOMY CAPABILITIES AND ENTREPRENEURIAL EMPOWERMENT AS ANTIDOTES OF SUSTAINABLE PERFORMANCE AMONG SMALL AND MEDIUM-SCALE ENTERPRISES

Abstract

This study investigated the roles of Digital Economy Capabilities (DEC) and Entrepreneurial Empowerment (EEPW) in enhancing Sustainable Performance (SP) among SMEs in Ogun State, Nigeria. A mixed-methods approach was used, including a survey of 230 SMEs (with 201 valid responses) and six in-depth interviews with government officials and NASME executives. Quantitative data were analysed using SEM-PLS, while qualitative data were thematically examined. The results showed that DEC has a significant impact on SP (β = 0.342, t = 7.892, p < 0.001), while EEPW positively affects DEC (β = 0.407, t = 6.630, p < 0.001). The combined effect of DEC and EEPW on SP was substantial (β = 0.622, t = 8.443, p < 0.001), indicating that sustainability is maximized when both capabilities coexist. Qualitative insights highlighted key challenges such as limited digital awareness, inadequate training, and poor infrastructure. Entrepreneurial empowerment was found to enhance innovation and decision-making through mentorship, skills development, and resource access. The study recommends policy reforms, digital training initiatives, and strategic collaborations to strengthen SME resilience, emphasizing the synergy between human capacity and technological capability.