Beyond digital anxiety: Leveraging digital platform capability and entrepreneurial orientation for SME digital business model innovation

In an era of accelerated digital transformation, how small- and medium-sized enterprises (SMEs) achieve digital business model innovation (DBMI) remains underexplored. Drawing on dynamic capability theory, this study investigates the roles of digital platform capability (DPC), strategic flexibility (SF), entrepreneurial orientation (EO), and digital transformation anxiety (DTA) in shaping DBMI. Data from a multi-informant survey of 266 Chinese SMEs are analysed using hierarchical regression, bootstrapping, and three-way interaction analyses. The results show that DPC is positively related to DBMI, partially mediated by SF. EO strengthens DPC’s influence on SF. However, this moderating effect is weakened under high DTA. Overall, by integrating technological, strategic, and psychological contingencies, the study provides a more comprehensive explanation of how SMEs leverage digital platforms for DBMI while managing digital transformation challenges.