Small and Medium Enterprises (SMEs) in emerging markets face significant challenges in maintaining resilience, particularly in the face of global crises. This study addresses the limited research on the factors influencing SME resilience in the context of digital transformation. Digital technology adoption presents both opportunities and challenges for SMEs, impacting collaborations, coordination, and innovation. While resource abundance may not always translate into resilience, frugal innovation offers a cost-effective approach to generating innovation. This study explores the interplay between digital transformation, frugal innovation, and ambidexterity in enhancing SME resilience, introducing the concept of 'share value relational capital' as a mediating factor. The study focuses on tourism SMEs in Indonesia, a significant contributor to the nation's GDP but also highly vulnerable to sustainability challenges due to factors such as the COVID-19 pandemic.

The literature review examines existing research on organizational resilience, emphasizing its dynamic capabilities in adapting to unexpected changes and crises. The role of digital transformation in enhancing resilience is explored, along with the limitations of relying solely on capital and physical assets. Frugal innovation is presented as a solution for SMEs' resource constraints, particularly in developing countries. The concept of ambidexterity—the ability to simultaneously manage exploitation and exploration—is also reviewed within the framework of resource-based theory and resource dependence theory. The study proposes the concept of 'share value relational capital,' defined as the ability to leverage knowledge, skills, and technological advancements to improve competitiveness and socioeconomic conditions. The existing literature gap regarding the link between digital business transformation, innovation, ambidexterity, and SME resilience is highlighted.

This study employs a quantitative research design to examine the causal relationships between digital business transformation, frugal innovation, ambidexterity, share value relational capital, and SME resilience. Data was collected using questionnaires from 568 respondents representing 132 tourism SMEs in Central Java and Yogyakarta, Indonesia. Logistic regression and structural equation modeling (AMOS SEM) were used to analyze the data. The sample size of 568 exceeded the minimum requirement (292) as determined by Hair et al. (2006). A bipolar numerical scale (1-10) was used for data collection, and a confirmatory factor analysis was performed to assess validity and reliability. A three-step process was followed for data analysis: fit testing, hypothesis testing (based on a p-value of <0.05 and a critical ratio > 1.96), and mediation testing using the Sobel test. The validity and reliability of measurement scales were ensured through techniques such as the mean of variance extracted (AVE) and Cronbach's Alpha.

The study found that all eight hypotheses were accepted. Specifically: 1. Digital business transformation positively affects share value relational capital (H1). 2. Share value relational capital positively affects SME resilience (H2). 3. Share value relational capital mediates the relationship between digital business transformation and SME resilience (H3). 4. Share value relational capital positively affects frugal innovation (H4). 5. Share value relational capital positively influences social media ambidexterity (H5). 6. Social media ambidexterity positively affects innovation ambidexterity (H6). 7. Innovation ambidexterity positively affects SME resilience (H7). 8. Frugal innovation positively affects SME resilience (H8). These findings suggest three strategic pathways for enhancing SME resilience: * **Path 1:** Digital business transformation → Share value relational capital → Resilience SMEs * **Path 2:** Digital business transformation → Share value relational capital → Frugal innovation → Resilience SMEs * **Path 3:** Digital business transformation → Share value relational capital → Social media ambidexterity → Innovation ambidexterity → Resilience SMEs The study emphasizes the critical role of share value relational capital in bridging digital business transformation and SME resilience. The AVE values for all variables were above 0.5, indicating good item quality, and the composite reliability values were above 0.7, demonstrating acceptable reliability. The goodness-of-fit indices for the model also met the criteria for model acceptance.

The findings of this study provide significant insights into enhancing SME resilience in the tourism sector. The strong positive relationships found between digital business transformation, share value relational capital, frugal innovation, ambidexterity, and SME resilience underscore the importance of strategic initiatives. The mediating role of share value relational capital highlights its significance in leveraging digital technologies and fostering strong relationships for improved resilience. The three identified pathways offer practical implications for SMEs seeking to enhance their adaptability and sustainability. This research contributes to the resource-based view by introducing a new construct: share value relational capital, demonstrating its importance in building competitive advantage in a dynamic environment.

This study makes significant contributions by introducing the novel concept of 'share value relational capital' and demonstrating its crucial mediating role in enhancing SME resilience. The three identified strategic pathways provide practical guidance for SMEs to increase their resilience through digital transformation, frugal innovation, and ambidexterity. Future research could focus on further developing the dimensions of share value relational capital and expanding the study to other industry sectors and geographic locations. Replication studies are also needed to confirm the generalizability of the findings.

The study's limitations include its focus on tourism SMEs in only two Indonesian provinces, which might limit the generalizability of the findings. Future research should replicate the study in different contexts to enhance the generalizability of the results. Additionally, the study is cross-sectional, limiting the examination of causal relationships over time. Future studies using longitudinal data would help to establish stronger causal links between the variables. The study relied on self-reported data from SME owners and managers, which could be subject to biases. Further research exploring different data collection methods could offer insights and address potential biases.