Resilience in tourism-based SMEs driven by initiatives and strategies through share value relational capital viewed from a resource-based theory perspective

The paper addresses the challenge of how SMEs in emerging markets can build resilience amid successive crises and rapid environmental change. It frames digital business transformation as a key enabler of organizational learning, coordination, and innovation, which in turn can strengthen resilience. Grounded in resource-based theory (and complemented by resource dependence and dynamic capability perspectives), the study proposes that a new construct—share value relational capital—along with frugal innovation and ambidexterity (social media and innovation ambidexterity) can mediate and enhance the effect of digital transformation on SMEs’ resilience. The research asks: (1) How can SMEs initiate and design strategies to increase resilience? (2) What factors influence efforts to build resilience? It posits multiple hypotheses linking digital transformation, share value relational capital, frugal innovation, social media ambidexterity, innovation ambidexterity, and resilience in tourism SMEs in Indonesia.

The literature conceptualizes organizational resilience as a dynamic capability to absorb shocks, adapt, and recover from disruptions. Digital transformation is highlighted as a catalyst for new value creation, operational change, and knowledge generation, potentially enhancing resilience through improved coordination and agility. Resource-based theory suggests firms with valuable, rare, inimitable, and non-substitutable internal resources can better innovate and weather crises; resource dependence theory underscores SMEs’ external dependencies and power imbalances, necessitating strategic networking and capability alignment with external resource providers. Frugal innovation is presented as a cost-efficient, needs-focused approach that optimizes resource use and speeds development—well-suited to SMEs’ constraints and conducive to resilience. Ambidexterity—balancing exploration and exploitation—is positioned as a dynamic capability improving efficiency and innovation simultaneously. The paper synthesizes resource-based theory with knowledge transfer concepts to introduce “share value relational capital,” defined as a firm’s capability to use technology to acquire/share knowledge and skills, develop policies and practices that enhance competitiveness and socioeconomic conditions, track progress, and generate new ideas—thereby unlocking value to improve SMEs’ resilience. Hypotheses developed include: H1 Digital business transformation → Share value relational capital; H2 Share value relational capital → Resilience; H3 Share value relational capital mediates the digital transformation → resilience link; H4 Share value relational capital → Frugal innovation; H5 Share value relational capital → Social media ambidexterity; H6 Social media ambidexterity → Innovation ambidexterity; H7 Innovation ambidexterity → Resilience; H8 Frugal innovation → Resilience. The model posits three strategic paths from digital transformation through share value relational capital to resilience: (1) directly via relational capital; (2) via frugal innovation; (3) via social media ambidexterity and then innovation ambidexterity.

Design: Quantitative, cross-sectional study using structured questionnaires and interviews, analyzed with SEM (AMOS 25) and mediation (Sobel) testing. Context and sample: Tourism SMEs in Central Java and the Special Region of Yogyakarta, Indonesia, chosen due to resource constraints, environmental uncertainty, lower bargaining power, and marketing visibility challenges. SME categories: hotels (n=42), culinary (n=61), tourist villages (n=13), trade tours (n=12), travel agents (n=4). Data were collected from 132 SMEs, yielding 584 respondents (owners/managers); 16 were excluded due to invariant responses, leaving 568 usable responses. Power analysis based on SEM rules of thumb (≥100 for 5+ constructs; target ≥292 given 5 variables and 27 indicators) indicated adequacy (actual >300). Measures: 10-point bipolar numerical scale (1=strongly disagree to 10=strongly agree). Constructs and sources: Digital business transformation (Ruel et al., 2020; Zhang, 2018); Frugal innovation (Kun, 2022; Zhang, 2018); Social media ambidexterity (Kun, 2022; Zhang, 2018); Innovation ambidexterity (Jansen et al., 2006); Share value relational capital (Kramer & Porter, 2011; Martins, 2023; Pambudi Widiatmaka et al., 2023); Resilience SMEs (Koronis & Ponis, 2018; Zhang et al., 2022). Data treatment and validation: Confirmatory factor analysis assessed validity and reliability. For non-normality, a negative root transformation Xn = 1/(k−X) was applied (Tabachnick et al., 2013). Convergent validity: AVE > 0.5; standardized loadings significant. Reliability targets: Cronbach’s alpha and composite reliability > 0.7. Reported alphas/composite reliability met thresholds across constructs (e.g., resilience alpha 0.92, composite reliability 0.89). Model fit and hypothesis testing: SEM fit indices indicated good fit: χ2=208.904, p<0.001; GFI=0.956; NFI=0.942; CFI=0.959; TLI=0.961; RMSEA=0.048. Hypotheses were tested via path analysis; mediation via Sobel test (Hayes approach cited).

- Model fit: χ2=208.904; GFI=0.956; NFI=0.942; CFI=0.959; TLI=0.961; RMSEA=0.048 (good fit). - All hypothesized paths were positive and significant (p<0.001), with critical ratios >1.96. Table 3 reports: • H1 Digital business transformation → Share value relational capital: Std est=0.603; unstd est=0.461; SE=0.067; CR=5.193; p<0.001. • H2 Share value relational capital → Resilience SMEs: Std est=0.773; unstd est=0.882; SE=0.057; CR=4.907; p<0.001. • H3 Mediation (Digital transformation → Share value relational capital → Resilience SMEs): Sobel Z=6.179634; p<0.001, indicating significant mediation. • H4 Share value relational capital → Frugal innovation: Std est=0.506; unstd est=0.617; SE=0.065; CR=8.904; p<0.001. • H5 Share value relational capital → Social ambidexterity: Std est=0.814; unstd est=0.706; SE=0.076; CR=6.726; p<0.001. • H6 Social ambidexterity → Innovation ambidexterity: Std est=0.741; unstd est=0.708; SE=0.081; CR=9.006; p<0.001. • H7 Innovation ambidexterity → Resilience SMEs: Std est=0.698; unstd est=0.782; SE=0.079; CR=10.045; p<0.001. • H8 Frugal innovation → Resilience SMEs: Std est=0.818; unstd est=0.781; SE=0.062; CR=11.003; p<0.001. - Three strategic pathways to resilience are supported: (1) Digital transformation → Share value relational capital → Resilience; (2) Digital transformation → Share value relational capital → Frugal innovation → Resilience; (3) Digital transformation → Share value relational capital → Social media ambidexterity → Innovation ambidexterity → Resilience. - Substantively, digital transformation enhances relational capital, which strengthens trust, networks, knowledge sharing, and stakeholder engagement; relational capital, in turn, promotes frugal innovation and ambidexterity, all of which significantly bolster SMEs’ resilience.

Findings validate the proposed resource-based and dynamic capability perspective that digital transformation serves as a strategic input whose value is realized through the development of share value relational capital. Relational capital becomes the bridge that translates digital capabilities into resilient outcomes by improving communication, stakeholder networks, trust, and data-driven decision-making. It also enables frugal innovation—cost optimization, faster development, and adaptability—and supports social media ambidexterity, which builds ties with both market and political actors, further enabling innovation ambidexterity (exploration and exploitation). Collectively, these mechanisms equip SMEs to orchestrate internal and external resources, manage uncertainty, and recover from disruptions, addressing the research question of how SMEs can design strategies to increase resilience. The three strategic paths identified offer actionable sequences for SMEs: (1) leverage digital tools to deepen relational capital; (2) channel relational capital into frugal innovation for resource-efficient adaptability; and (3) cultivate ambidexterity via social media networking to support balanced exploration/exploitation for sustained competitiveness and resilience.

This study introduces and empirically supports the novel construct of share value relational capital as a mediating capability that converts digital business transformation into improved resilience among tourism SMEs. By demonstrating that relational capital also drives frugal innovation and ambidexterity (social media and innovation), the research provides a comprehensive model with three validated strategic pathways to resilience. Contributions include: (1) synthesizing resource-based theory and knowledge transfer concepts into share value relational capital; (2) evidencing how digital transformation, through relational capital, enhances SMEs’ adaptability; and (3) clarifying the roles of frugal innovation and ambidexterity in resilience building. Managerially, SMEs should invest in digital capabilities that strengthen relational capital, embed knowledge creation/sharing, engage stakeholders, and cultivate ambidexterity and frugality to navigate crises and sustain performance. Future research should further operationalize and dimensionalize the share value relational capital construct and test the model across sectors and regions for broader generalizability.

- Conceptual development: The share value relational capital construct is newly proposed; further work is needed to refine its dimensions and measurement for strategic management applications. - Sampling frame: Data are limited to tourism SMEs in Central Java and the Special Region of Yogyakarta, which may constrain generalizability; replication in other industries and geographies is recommended. - Cross-sectional design: Limits causal inference; longitudinal designs could capture dynamic capability development and resilience over time. - Self-reported measures: Potential common method bias despite CFA and reliability checks; multi-source data could strengthen validity.