Beyond Market Penetration: Leveraging Brand Capital for Competitive Advantage in Digitally-Driven SMEs in Resource-Constrained Settings

Beyond Market Penetration: Leveraging Brand Capital for Competitive Advantage in Digitally-Driven SMEs in Resource-Constrained Settings | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Beyond Market Penetration: Leveraging Brand Capital for Competitive Advantage in Digitally-Driven SMEs in Resource-Constrained Settings Rennie Bakashaba, 2. Dedrix Stephenson Bindeeba This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7094233/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 04 Oct, 2025 Read the published version in Future Business Journal → Version 1 posted You are reading this latest preprint version Abstract Digital Commerce Activation (DCA) has enabled SMEs to broaden market reach, yet market penetration (MP) alone often fails to create sustainable competitive advantage (CA). Drawing on the Resource-Based View and Dynamic Capabilities Theory, this study examines how Brand Capital (BC) mediates the relationship between DCA and CA while assessing MP’s parallel role. Survey data were collected from 405 digitally active SMEs in Kampala and Wakiso, Uganda, and analyzed through structural equation modeling. Findings indicate that DCA significantly enhances both BC and MP; however, MP neither directly influences CA nor transmits DCA’s effects into CA. In contrast, BC demonstrates a strong positive influence on CA and fully mediates the DCA–CA relationship. These results confirm that BC, encompassing brand awareness, perceived quality, loyalty, and associations, functions as a VRIN resource that converts digital investments into enduring advantage. The study contributes by (1) extending RBV to position BC as the primary intangible conduit for digital strategy, (2) clarifying the micro foundations of BC formation via dynamic digital routines, and (3) offering context-specific insights for resource-constrained SMEs. Practically, managers should prioritize brand-building routines over reach-seeking, and policymakers should support digital branding initiatives to strengthen SME competitiveness. Digital Commerce Activation Brand Capital Market Penetration Competitive Advantage SMEs Resource-Constrained Environments Uganda Figures Figure 1 Figure 2 1.0 Introduction The digital era has radically transformed competitive dynamics for small and medium-sized enterprises (SMEs). Rapid advances in broadband Internet, widespread smartphone adoption, and the proliferation of social media and e-commerce platforms have dramatically lowered entry barriers, enabling even micro-enterprises to reach customers far beyond traditional geographic confines at minimal cost (UNCTAD, 2021 ; World Bank, 2020 ; Kencebay & Ertugan, 2025 ). In resource-constrained environments marked by underdeveloped infrastructure, limited access to finance, and regulatory uncertainty, Digital Commerce Activation (DCA) has become a critical enabler of SME growth and resilience (Gomber et al., 2018 ; Sudrajad et al., 2023 ); OECD, 2021). By leveraging e-commerce platforms, social commerce tools, and digital payment systems, SMEs can mitigate the disadvantages of a weak physical presence and engage consumers in real time (Achieng & Malatji, 2022 ; Bouwman et al., 2019 ; Q. Chen & Zhang, 2015 ; Odoom & Mensah, 2019 ). Recognizing this potential, international agencies and national policymakers have prioritized SME digitalization as a strategic avenue for job creation, poverty reduction, and broader economic development (ITC, 2022; OECD, 2019 ; World Bank, 2022 ). Despite this enthusiasm, a persistent paradox has surfaced: many digitally active SMEs succeed in expanding their Market Penetration (MP) yet fail to secure lasting Competitive Advantage (CA) (Edeling & Himme, 2018 ; Jovanovic et al., 2020 ). Classical marketing theories assert that a larger customer base drives economies of scale, revenue growth, and market power (Porter, 1985 ; Kotler & Keller, 2016 ). However, recent meta-analyses and empirical studies challenge this view, revealing that incremental increases in market share often yield only modest profitability gains in contexts where switching costs are low and digital imitation is rapid (Edeling & Himme, 2018 ). For instance, Edeling and Himme ( 2018 ) demonstrate that small market share gains can translate into negligible profit increases when competitors replicate digital offerings. Likewise, (Charles & Lester, 2024 ) find that SMEs prioritizing digital expansion without embedding strategic digital capabilities often fail to sustain superior performance. Their findings highlight that digital growth must be supported by digital readiness, internal alignment, and organizational learning. These insights suggest that MP is necessary but insufficient for sustainable CA in digital contexts, where agility, distinctiveness, and integration are key to long-term advantage. The Resource-Based View (RBV) of the firm provides a useful lens to understand this paradox. According to RBV, enduring CA arises from resources that are Valuable, Rare, Inimitable, and Non-substitutable (VRIN) (Barney, 1991 ). While MP represents a threshold resource that competitors can easily secure through similar digital channels (Bharadwaj et al., 2013 ; Konuk et al., 2023 ), Brand Capital (BC) encompassing brand awareness, perceived quality, loyalty, and associations constitutes a prototypical VRIN asset (Belo et al., 2014 ; He et al., 2020 ; Luo & Bhattacharya, 2006 a). A strong BC confers customer loyalty, premium pricing power, and barriers to imitation, even when digital reach is commoditized (Dumitriu et al., 2019 ). Evidence from emerging markets reinforces this dynamic: Odoom & Mensah ( 2019 ) show that Ghanaian SMEs with a brand orientation achieve superior performance when moderated by innovation and social media capabilities, and Wiid, Wiid et al. ( 2024 ) document that African SMEs overcoming “brand barriers” see improved customer retention and perceived outcomes. Similarly, Agaba & Kalu ( 2019 ) find that brand awareness and loyalty significantly predict competitive positioning in Uganda’s alcoholic beverage sector. These studies collectively underscore that BC, more than MP alone, serves as the linchpin for sustainable CA, particularly in resource-constrained environments. Dynamic Capabilities Theory further clarifies how BC can be developed and leveraged in rapidly changing digital markets. This perspective emphasizes that firms must continuously integrate, build, and reconfigure resources to adapt to evolving environments (Eisenhardt & Martin, 2000 ; Teece et al., 1997 ). In the digital realm characterized by technological volatility, shifting consumer preferences, and intensifying competition SMEs require dynamic capabilities to sense emerging trends e.g., new social commerce opportunities, seize them through targeted digital campaigns, and transform operations to reinforce intangible assets like BC (Saeed et al., 2005 ; Warner & Wäger, 2019 ). Bouwman et al. ( 2019 ) emphasize that aligning digital strategy with business objectives is crucial for converting digital initiatives into competitive outcomes. Within the SME context, Marolt et al. ( 2022 ), reveal that social media boosts business performance only when firms build relational social commerce capabilities and competitive advantage. Together, these findings suggest that while DCA provides essential infrastructure, it is the dynamic orchestration of digital resources into brand-building processes that enables SMEs to convert digital activation into enduring BC (Sudrajad et al., 2023 ). Specific adaptive routines such as data-driven personalization, community engagement, and iterative feedback loops empower SMEs to continuously refine their brand narrative and deepen customer relationships. Although these theoretical frameworks advance our understanding, integrative research on how DCA, MP, and BC converge to drive CA remains limited, especially for SMEs in low- and middle-income countries (LMICs). Most existing literature focuses on developed-economy SMEs or large corporations, leaving a gap in context-specific insights for resource-constrained settings (Kencebay & Ertugan, 2025 ; Rajgopal et al., 2000 ; Susila et al., 2023 ). Gielens & Steenkamp ( 2019 ) examine how digital disintermediation shifts branding power toward consumers in Belgium, but such dynamics may differ in low-infrastructure settings. Achieng & Malatji ( 2022 ) identify digital illiteracy, financial constraints, and infrastructural limitations as critical barriers for SMEs in developing countries, challenges echoed by Oduro & Mensah-Williams ( 2023 ) in African contexts. Likewise, Susila et al. ( 2023 ) highlight how corporate governance and intellectual capital jointly drive firm value in ASEAN, affirming the strategic role of intangibles beyond BC. Yet, the integration of such resources with DCA in LMIC SMEs remains underexplored. Distinguishing between superficial MP effects and genuine gains in CA through enhanced BC is therefore essential. To address this gap, the present study proposes a theory-driven framework in which BC mediates the relationship between DCA and CA, while MP serves as a parallel but incomplete pathway. Specifically, the research investigates: (1) how DCA directly influences MP and BC; (2) the differential effects of MP and BC on CA; and (3) the mediating roles of MP and BC in channeling the effects of DCA into CA. By focusing on SMEs operating within a resource-constrained environment, we capture the unique challenges these firms face limited budgets for branding, rudimentary digital capabilities, and intense competitive pressures from both local and global players (Oduro & Mensah-Williams, 2023 ; Sudrajad et al., 2023 ; Susila et al., 2023 ). This context provides a rich setting to examine whether BC truly serves as the mechanism that converts digital reach into sustainable CA. Our study makes three key theoretical contributions. First, it extends RBV by positioning BC as the primary VRIN resource through which digital investments can yield sustainable CA, thereby challenging the conventional emphasis on scale and reach (Luo & Bhattacharya, 2006 b; Suryaningsih & Abadi, 2024 ); Keller, 2013 ). Second, it enriches Dynamic Capabilities Theory by identifying specific adaptive routines such as digital brand-building processes, community engagement, and iterative customer feedback loops that enable SMEs to transform DCA into enduring strategic assets (Eisenhardt & Martin, 2000 ; Teece et al., 1997 ; Warner & Wäger, 2019 ). Third, by examining these mechanisms within a resource-constrained setting, we respond to calls for more context-specific SME research in LMICs, offering insights that account for infrastructural, financial, and institutional constraints (Zoogah et al., 2023 ). In doing so, we establish a foundation for understanding how SMEs can leverage intangible assets rather than market penetration alone to secure lasting advantage in digital marketplaces. In summary, this study aims to illuminate the nuanced pathways through which DCA influences SME competitiveness in resource-constrained environments. By demonstrating the centrality of BC as a mediating resource and the insufficiency of MP alone we challenge conventional digitalization rhetoric and propose a robust, capabilities-driven framework. This framework will equip scholars with empirical insights to refine RBV and Dynamic Capabilities Theory in digital contexts, while guiding practitioners and policymakers on how SMEs can harness digital technologies and intangible resources to achieve sustainable advantage, even amid severe resource constraints. Future research might extend these insights by exploring cross-industry comparisons, examining complementary intangible resources (e.g., intellectual capital), and testing whether similar mechanisms hold across diverse LMIC geographies. 2.0 Literature Review Theoretical Review This study’s theoretical framework integrates the RBV and DC Theory to explain how DCA leads to CA among resource-constrained SMEs via BC, with MP as an intermediary outcome. DCA, MP, BC, and CA are interrelated constructs that underpin SME success in digital environments. The RBV asserts that sustainable CA arises from resources that are Valuable, Rare, Inimitable, and Non-substitutable (VRIN) (Barney, 1991 ; Barney & Ray, 2021). In digital contexts, adopting e-commerce platforms, social media tools, and digital payment systems constitutes essential infrastructure but does not guarantee lasting advantage, as competitors can replicate these assets with relative ease (Bharadwaj et al., 2013 ; Konuk et al., 2023 ). Instead, RBV highlights that intangible assets most notably BC serve as strategic differentiators, converting digital reach into enduring CA. BC encompasses customer-based brand equity dimensions brand awareness, perceived quality, loyalty, and brand associations that shape consumer perceptions and drive preference (Aaker, 1996; Keller, 2003). By embedding trust, reputation, and emotional resonance, BC embodies VRIN attributes: it commands premium pricing, fosters repeat patronage, and resists imitation (Suryaningsih & Abadi, 2024 ). Empirical studies in emerging economies reinforce BC’s primacy: Odoom & Mensah ( 2019 ) show that Ghanaian SMEs with strong brand orientation outperform peers when augmented by innovation and social media capabilities, while Wiid, Wiid et al. ( 2024 ) document that African SMEs investing in digital brand development achieve higher customer retention despite constrained budgets. Dynamic Capabilities Theory extends the Resource-Based View by explaining how firms adapt through processes of sensing, seizing, and transforming in volatile digital environments (Eisenhardt & Martin, 2000 ; Teece et al., 1997 ). For SMEs, this means embedding adaptive routines that go beyond static digital adoption. Barua et al. ( 2004 ) emphasize that digital business processes yield value only when aligned with strategic goals. P. Chen & Kim ( 2023 ) show that innovation performance improves when digital transformation is mediated by absorptive capacity. Similarly, Marolt et al. ( 2022 ) find that social media enhances SME performance only through relational commerce capabilities. Sudrajad et al. ( 2023 ) reveal that digitalization drives performance when focused on value realization. These findings suggest that Digital Commerce Activation becomes a dynamic capability only when SMEs embed data-driven personalization, interactive brand learning, and iterative feedback loops within their marketing and branding ecosystems. MP often emerges as a primary objective of DCA, as SMEs seek to broaden customer reach and revenue streams. However, MP alone lacks VRIN qualities because competitors can quickly replicate market-outreach tactics (Edeling & Himme, 2018 ). For example, Edeling & Himme ( 2018 ) demonstrate that marginal increases in market share yield negligible profit improvements when switching costs are low and digital offerings are easily imitated. Konuk et al. ( 2023 ) similarly observe that SMEs focusing solely on expansion without investing in distinctive capabilities struggle to sustain performance. Thus, MP represents a necessary but insufficient outcome of DCA; it signals digital adoption but does not in itself generate sustainable CA. By contrast, BC mediates the relationship between DCA and CA, capturing the value created when digital interactions strengthen brand equity. Studies of SME digitalization underscore BC’s central role. Dumitriu et al. ( 2019 ) show that Romanian SMEs using digital marketing tools enhance BC and stakeholder trust when aligning digital and sustainability goals. Monfort et al. ( 2025 ) find that in Spain, sustainability-driven communication and customer satisfaction significantly predict brand trust. These insights align with RBV: BC transforms digital reach into relational capital that underlies CA. Moreover, the ASEAN study by SSusila et al. ( 2023 ) validates that intangible assets, including BC, mediate corporate governance’s effect on firm value, further affirming BC’s VRIN status. In sum, RBV and Dynamic Capabilities Theory converge to assert that DCA’s impact on CA is mediated by BC rather than MP alone. DCA provides necessary digital infrastructure, but without dynamic routines to cultivate BC through consistent brand messaging, community engagement, and iterative learning SMEs risk expending resources on superficial MP gains. In resource-constrained settings, BC emerges as the linchpin: it transforms digital investments into enduring relational capital, enabling SMEs to compete despite infrastructural and financial limitations. This theoretical synthesis establishes BC as the critical mediator linking DCA to CA, substantiating why intangible assets must be prioritized over mere market expansion in digitally driven SME strategies. Hypothesis Building Digital Commerce Activation and Brand Capital DCA involves SMEs adopting e-commerce platforms, social media channels, and digital payment systems to engage customers and articulate brand narratives. RBV posits that intangible assets such as BC encompassing brand awareness, perceived quality, loyalty, and associations are VRIN resources that generate sustainable advantage (Aaker, 1996; Keller, 2003). Empirical evidence supports this linkage: Dumitriu et al. ( 2019 ) demonstrate that Romanian SMEs aligning digital marketing tools with sustainability goals significantly strengthen BC, while Monfort et al. ( 2025 ) confirm that sustainability-driven digital communication enhances consumer trust. Dynamic Capabilities Theory suggests that DCA becomes a true dynamic capability when SMEs embed iterative routines that reinforce BC such as personalized content, real-time feedback loops, and consistent brand messaging (Eisenhardt & Martin, 2000 ; Teece et al., 1997 ). Bouwman et al. ( 2019 ) and Hussain et al. ( 2020 ) reveal that SMEs develop relational social commerce capabilities, another BC dimension through continuous digital engagement. Eriandani & Winarno ( 2023 ) further find that BC is critical in commoditized B2B settings when digital tools reinforce perceived quality and loyalty. Thus, by transforming digital interactions into emotional resonance and trust, we hypothesize that: H1 Digital Commerce Activation positively influences Brand Capital. Digital Commerce Activation as a Catalyst for Market Penetration MP measures SMEs’ ability to broaden their customer base and enter new markets through digital channels. According to RBV, DCA can provide threshold infrastructure, but MP arises when SMEs leverage these tools to reach previously inaccessible segments Achieng & Malatji ( 2022 ). Jovanovic et al. ( 2020 ) find that EU SMEs’ e-commerce platforms mediate online sales’ impact on performance, facilitating broader reach. Similarly, Barua et al. ( 2004 ) show that net-enabled business processes enhance operational efficiency, enabling entry into wider markets. Charles & Lester ( 2024 ) emphasize assessing digital readiness and selecting suitable technologies as key enablers of MP. Dynamic Capabilities Theory further clarifies that DCA reduces reliance on physical infrastructure, allowing SMEs to access remote and underserved customers at minimal cost (Eisenhardt & Martin, 2000 ; Teece et al., 1997 ). Mutembei & Wanjira Njuguna ( 2019 ) report that Kenyan agrochemical firms achieve performance gains via digital MP strategies reaching remote clients. Kaunda Mutuku et al. ( 2019 ) similarly document that Kenyan banks leverage e-commerce to enhance ROA by improving customer satisfaction. Gitonga et al. ( 2025 ) confirm that MP strategies drive CA in Kenya’s telecommunications sector. Thus, by extending digital reach and tapping underserved segments, we hypothesize that: H2 Digital Commerce Activation has a positive influence on Market Penetration. Digital Commerce Activation as a Driver of Competitive Advantage CA emerges when SMEs leverage capabilities that rivals cannot easily replicate. RBV asserts that digital tools alone are threshold resources, but strategic integration with internal processes transforms them into CA drivers (Barney, 1991 ). Saeed et al. ( 2005 ) find that U.S. firms’ e-commerce capabilities yield performance gains only when integrated with customer service processes, indicating DCA must align with internal capabilities. DC Theory suggests that DCA fosters CA when SMEs continuously adapt digital tools to create agility, cost efficiencies, and rapid market responsiveness (Castiaux, 2012 ; Eisenhardt & Martin, 2000 ; Kump et al., 2019 ). Kocak et al. ( 2017 ) reveal that Turkish tech startups combine entrepreneurial marketing and digital readiness to amplify BC, which mediates performance. Marolt et al. ( 2022 ) also show that social media-driven relational capabilities enhance SME competitiveness in Slovenia. Conversely, Edeling & Himme ( 2018 ) demonstrate that MP alone yields marginal profit gains when digital offerings are easily imitated. Hence, by enabling SMEs to differentiate through agility, innovation, and brand-driven value, we hypothesize that: H3 Digital Commerce Activation positively influences Firm Competitive Advantage. Brand Capital as a Driver of Competitive Advantage BC embodies customer-based brand equity awareness, perceived quality, loyalty, and associations that RBV recognizes as a VRIN resource (Keller, 2003). Empirical studies confirm BC’s strategic significance. Suryaningsih & Abadi ( 2024 ) show in Asia-Pacific B2B chemicals that robust BC yields customer retention and premium pricing, directly bolstering CA. Dumitriu et al. ( 2019 ) find that Romanian SMEs leveraging digital marketing tools and sustainability frameworks significantly strengthen BC, translating digital interactions into stakeholder trust. Odoom & Mensah ( 2019 ) report that Ghanaian SMEs with strong brand orientation outperform peers by enhancing BC through social media capabilities. Dynamic Capabilities Theory further elucidates how BC fosters CA. Eisenhardt & Martin ( 2000 ) argue that adaptive routines such as co-creation, real-time feedback, and iterative messaging reinforce BC in turbulent markets. Monfort et al. ( 2025 ) demonstrate that sustainability-driven communication strategies in Spain enhance BC via perceived value and customer satisfaction, which in turn elevate CA. By continuously reconfiguring digital brand-building processes, SMEs embed BC as a source of resilience and differentiation. Thus, we hypothesize that: H4 Brand Capital positively influences Firm Competitive Advantage. Market Penetration as a Contributor to Competitive Advantage MP) reflects SMEs’ expansion into new customer segments via digital channels, which can yield short-term performance improvements. Jovanovic et al. ( 2020 ) demonstrate that EU SMEs’ MP through e-commerce platforms mediates digital investments to enhance performance, while Gitonga et al. ( 2025 ) find in Kenyan telecommunications that MP strategies explain 61% of variance in CA, moderated by regulatory factors. However, RBV warns that MP alone lacks VRIN attributes, as rivals can replicate digital reach (Achieng & Malatji, 2022 ; Edeling & Himme, 2018 ; Kaunda Mutuku et al., 2019 ). Kaunda Mutuku et al. ( 2019 ) show that Kenyan banks’ e-commerce capabilities improve ROA via customer satisfaction and operational efficiency, suggesting MP can indirectly influence CA when internal capabilities align. Dynamic Capabilities Theory suggests MP contributes to CA only when SMЕs continuously adapt. Marolt et al. ( 2022 ) reveal that Slovenian SMEs employing social media achieve higher MP, but only when relational social commerce capabilities evolve. Sudrajad et al. ( 2023 ) find that Indonesian MSMEs’ MP through digital literacy yields CA only if mediated by digital performance outcomes. Thus, in resource-constrained contexts, MP supports CA when SMEs dynamically reconfigure digital resources and build complementary capabilities. Consequently, we hypothesize that: H5 Market Penetration positively influences Firm Competitive Advantage. Firm Size’s Role in Shaping Competitive Advantage Firm Size determines resource availability financial, human, and technological which RBV posits as critical for nurturing VRIN resources (Barney, 1991 ). Larger SMEs typically possess greater economies of scale, enabling investments in brand-building and digital infrastructure (Charles & Lester, 2024 ). Gitonga et al. ( 2025 ) demonstrate that in Kenyan retail, larger firms leverage broader distribution and marketing budgets to enhance CA. Similarly, Kaunda Mutuku et al. ( 2019 ) find that commercial banks with greater asset bases achieve higher ROA through e-commerce-enabled operational efficiencies. However, size alone does not guarantee CA; it must be coupled with strategic resource deployment. Dynamic Capabilities Theory further emphasizes that larger firms must cultivate adaptive routines to translate size into advantage (Eisenhardt & Martin, 2000 ). Oduro & Mensah-Williams ( 2023 ) show that Ghanaian SMEs’ marketing capabilities mediate size’s effect on performance, indicating that dynamic marketing routines product development, communication, and implementation help larger firms convert resources into CA. Charles & Lester ( 2024 ) highlight that employee engagement and continuous learning in larger SMEs foster a digital culture, enabling rapid responses to market shifts. Therefore, while Firm Size provides necessary resources, its positive effect on CA depends on dynamic capabilities. Thus, we hypothesize that: H6 Firm Size positively influences Firm Competitive Advantage. Brand Capital Mediates the Relationship Between Digital Commerce Activation and Firm Competitive Advantage DCA enables SMEs to deploy e-commerce platforms, social media channels, and digital payment systems, which under RBV function as threshold assets that must be leveraged into VRIN resources (Bharadwaj et al., 2013 ). Empirical evidence indicates that DCA enhances BC by fostering brand awareness, perceived quality, loyalty, and associations. For instance, Dumitriu et al. ( 2019 ) show that Romanian SMEs aligning digital marketing tools with sustainability goals significantly strengthen BC and stakeholder trust. Monfort et al. ( 2025 ) further confirm that sustainability-driven digital communication enhances consumer trust in Spain. These findings underscore that DCA fuels BC development, as SMEs craft personalized content, integrate feedback loops, and maintain consistent brand messaging across digital touchpoints (Charles & Lester, 2024 ). Dynamic Capabilities Theory suggests that BC functions as a dynamic resource when SMEs continuously sense market feedback, seize brand-building opportunities, and reconfigure digital assets (Eisenhardt & Martin, 2000 ; Teece et al., 1997 ). Kocak et al. ( 2017 ) illustrate how Turkish tech startups’ strategic capabilities and digital readiness amplify BC, which then mediates performance outcomes. Marolt et al. ( 2022 ) reveal that relational social commerce capabilities, derived from digital engagement, bolster SME competitiveness. BC thus translates digital interactions into emotional resonance and loyalty, creating a VRIN resource that competitors cannot easily replicate. Consequently, DCA’s effect on CA occurs primarily through BC. Thus, we hypothesize that: H7 Brand Capital mediates the relationship between Digital Commerce Activation and Firm Competitive Advantage. Market Penetration Mediates the Relationship Between Digital Commerce Activation and Firm Competitive Advantage DCA equips SMEs with affordable, scalable digital channels e-commerce platforms, social media, and digital payment systems that directly expand MP by reaching previously inaccessible customers (Barua et al., 2004 ; Jovanovic et al., 2020 ). Under RBV, MP represents a threshold capability that can be easily imitated yet remains necessary for capturing market share (Barney, 1991 ). In resource-constrained contexts, DCA reduces reliance on physical infrastructure and allows SMEs to access remote consumers at minimal cost. For example, Kaunda Mutuku et al. ( 2019 ) find that Kenyan banks leverage e-commerce capabilities to enhance ROA via improved customer satisfaction and efficiency. Dynamic Capabilities Theory postulates that MP contributes to Competitive Advantage (CA) when SMEs continuously sense market shifts, seize new segments, and reconfigure digital processes to serve evolving consumer needs (Eisenhardt & Martin, 2000 ; Teece et al., 1997 ). Gitonga et al. ( 2025 ), confirm that MP strategies explain a significant share of variance in CA for Kenyan telecommunications firms, moderated by regulatory alignment. However, Edeling & Himme ( 2018 ) caution that MP alone yields marginal profits when digital offerings are easily replicated, indicating that MP must be complemented by adaptive routines. Sudrajad et al. ( 2023 ) show that Indonesian MSMEs’ MP only enhances financial performance when mediated by digital performance capabilities. MP thus functions as a channel through which DCA enables scaling, which, when combined with other dynamic capabilities, strengthens CA. Thus, we hypothesize that: H8 Market Penetration mediates the relationship between Digital Commerce Activation and Firm Competitive Advantage . To position the present study within the broader discourse on SME digital strategy and competitive advantage, Table 1 summarizes key studies on DCA, Brand Capital, Market Penetration, and Competitive Advantage, highlighting unresolved gaps that inform the present study. Most prior research treats these constructs in isolation or omits key mediators. Whereas Fig. 1 illustrates the proposed conceptual model, integrating DCA, BC, and MP as pathways to CA, with firm size as a moderator. The model tests both direct and mediated effects within SME contexts. Table 1 Key Empirical and Review Studies on DCA, BC, MP, and CA: Unresolved Gaps Driving the Present Study Author (Year) Context & Sample Theory / Framework Variables & Method Principal Findings Unresolved Gaps That This Study Tackles Dumitriu et al. ( 2019 ) Romania; 250 SMEs in manufacturing and services RBV; Sustainability Theory Digital Marketing Tools & Techniques (DMTTs) → Brand Equity; survey-based PLS‐SEM Strategic use of DMTTs significantly enhances BC and stakeholder trust, resulting in higher customer loyalty and market competitiveness Focuses narrowly on DMTTs without examining broader DCA or its direct link to CA; does not consider MP as a parallel pathway alongside BC. Marolt et al. ( 2022 ) Slovenia; 180 SMEs in retail and services Dynamic Capabilities; Relational Social Commerce Social Media Use → Relational Social Commerce Capability → Performance; survey and regression Social media alone does not directly affect performance; relational social commerce capability mediates its impact on CA, validating the importance of capability-building. Omits BC as a VRIN resource mediating DCA and CA; does not examine MP’s role. JJovanovic et al. ( 2020 ) EU; 300 SMEs in manufacturing and retail RBV; Channel Integration Framework E-commerce Capabilities → Internet‐Based Sales Channels → Firm Performance; OLS regression Internet-based sales channels mediate e‐commerce’s impact on SME performance, highlighting digital channel strategy’s importance for MP. Fails to incorporate BC as a mediator; does not explore how DCA influences CA beyond MP, nor compare the relative effects of BC versus MP on CA. Monfort et al. ( 2025 ) Spain; 1,280 consumers of sustainable brands Consumer Trust; Sustainable Branding Perceived Value, Satisfaction, Service, Brand Image → BC; PLS-SEM Perceived value, customer satisfaction, customer service, and brand image significantly predict brand trust; sustainability-driven communication strategies strengthen BC. Concentrates on consumer trust in sustainable brands without linking DCA, BC, MP, and CA in SMEs; ignores MP and CA outcomes. Charles & Lester ( 2024 ) Global SMEs; multiple industries RBV; Dynamic Capabilities Digital Transformation Roadmap; case studies of DCA tools, digital readiness assessment, and culture SMEs that assess digital readiness, select suitable technologies, and foster a digital culture achieve sustainable growth and competitiveness; barriers include limited resources and resistance to change. Offers a broad DCA roadmap but does not empirically link DCA to BC, MP, or CA; lacks mediation analysis to show how BC and MP transmit DCA’s effects into CA. Odoom & Mensah ( 2019 ) Ghana; 220 SMEs across sectors RBV; Social Media Capabilities Brand Orientation (BC) × Social Media & Innovation Capabilities → SME Performance; survey and SEM Social media and innovation capabilities positively moderate BC’s effect on SME performance, especially in medium-sized firms; BC enhances communication and differentiation. Does not integrate DCA as a broader construct or test its direct influence on BC and CA; overlooks MP and the joint effects of BC and MP on CA. Present Study Resource-constrained SMEs; 405 firms across sectors RBV; Dynamic Capabilities Theory DCA → BC, MP → CA; PLS-SEM mediation analysis DCA directly enhances BC and MP; BC fully mediates DCA’s effect on CA, whereas MP’s mediation is not significant, confirming BC’s VRIN role. Integrates DCA, BC, MP, and CA in a single model for resource-constrained SMEs; fills gap by empirically demonstrating BC’s central mediating role and MP’s insufficiency in generating CA. 3.0 Methodology Research Design and Paradigm This study aimed to determine how DCA influences CA through BC and MP in resource-constrained SMEs. Adopting a positivist paradigm, we employed an explanatory research design with a quantitative approach to test causal relationships among DCA, BC, MP, and CA (Saunders, Lewis, & Thornhill, 2009 ). Drawing on the Resource‐Based View and Dynamic Capabilities Theory, we developed a mediation model and applied CB Structural Equation Modeling (CB‐SEM) for hypothesis testing. Study Setting and Population Data collection took place in Kampala and Wakiso business districts regions collectively accounting for over 34 percent of Uganda’s SMEs and contributing approximately 70 percent of national GDP (Uganda Bureau of Statistics, 2022 ). These districts encompass diverse industries, including retail, services, manufacturing, and information technology, and represent both formal and informal enterprises. The target population comprised owner-managers or senior managers of SMEs that (1) maintained an active digital presence through platforms such as e‐commerce websites, social media pages, or digital payment systems; (2) were registered or operating within Kampala or Wakiso; and (3) had been in operation for at least one year, signifying a baseline level of digital adoption. Sampling and Pilot Testing This study recognizes that employing a probabilistic sampling approach would have been ideal for selecting a representative sample from the target population and enhancing the generalizability of the findings. However, because no comprehensive public registry of digitally active SMEs exists, we were unable to implement random sampling techniques. As a result, we calculated a target sample size of 387 SMEs based on Krejcie and Morgan’s ( 1970 ) table for populations exceeding 100,000, ensuring a representative confidence level and margin of error. Due to the lack of a complete directory of digitally engaged SMEs in Kampala and Wakiso, we instead utilized snowball sampling. Initial participants were identified from the Uganda Investment Authority’s database of registered SMEs, selecting those that met our criteria of maintaining an active digital presence and at least one year of operation. Each of these SMEs was then asked to recommend additional digitally engaged firms, and this referral process continued until responses were obtained from 405 SMEs, slightly exceeding our target sample size. Prior to the main data collection, a pilot test was conducted with 45 SMEs to evaluate item clarity, relevance, and internal consistency of the questionnaire. These pilot firms provided feedback on wording, context, and length, which led to minor revisions in item phrasing and response instructions. These adjustments ensured that each measurement covering DCA, BC, MP, and Firm Competitive Advantage was comprehensible and contextually appropriate across the diverse SME environments encountered in Kampala and Wakiso districts. Instrument and Measurement A structured questionnaire was chosen for its cost-effectiveness and efficiency in gathering data from a moderately large sample (Saunders et al., n.d.). The instrument included three demographic questions (firm age, sector, digital engagement duration) and twenty items adapted from established sources to measure the key constructs. DCA was measured using four items adapted from Saeed et al. ( 2005 ), and Jovanovic et al. ( 2020 )d Chen & Zhang ( 2015 ) for example, “Our firm uses digital platforms to reach and engage customers” and “Digital tools drive customer conversion in our business.” BC employed five items adapted from Keller’s (2003) Customer-Based Brand Equity model and Atilgan, Aksoy, and Akinci (2005) to assess dimensions such as digital brand awareness (“Our digital presence enhances our brand recognition”), perceived quality, trust, consistent communication, and loyalty. Market Penetration comprised four items reflecting digital reach and customer base expansion, based on Jovanovic et al. ( 2020 ) and Gitonga et al. ( 2025 ), including “We have extended market reach through digital technologies.” CA was operationalized with five items adapted from Saeed et al. ( 2005 ), focusing on digital agility (“Our digital capabilities give us a competitive edge”), strategic decision-making (“We make strategic decisions based on digital insights”), performance enhancement, operational agility, and sustained competitiveness. Each item used a five-point Likert scale (1 = strongly disagree to 5 = strongly agree). Prior to full deployment, the questionnaire was pretested with 45 SMEs to ensure clarity, relevance, and contextual appropriateness, leading to minor wording adjustments. This process ensured that all constructs were measured reliably and aligned with the theoretical framework. Data Collection Procedure Over an eight-week period, trained research assistants visited SMEs in person to explain the study’s objectives, secure informed consent, and distribute paper or electronic copies of the questionnaire. One week after initial distribution, reminders were sent via phone calls or email to increase response rates. For respondents with limited literacy or time constraints, the questionnaire was administered through face‐to‐face interviews to ensure completeness. All completed questionnaires were coded numerically to protect participant anonymity. Ethical approval was obtained from the [University’s Institutional Review Board], and participants were assured of confidentiality and voluntary participation. Data Analysis Survey responses were entered into SPSS 27 for preliminary screening (IBM Corp., 2019). Descriptive statistics were computed to profile the sample by industry sector, firm size, and years of digital engagement (Hair, Black, Babin, & Anderson, 2019 ). Missing data amounting to less than 2 percent per item were handled through mean imputation (Hair et al., 2019 ). Confirmatory factor analysis (CFA) and structural model testing were conducted in AMOS 26. First, we assessed convergent validity by examining standardized factor loadings (all above 0.60), Average Variance Extracted (AVE > 0.50), and Composite Reliability (CR > 0.70) for each construct (Fornell & Larcker, 1981 ; Hair et al., 2019 ). Discriminant validity was evaluated by ensuring that each construct’s AVE exceeded its squared correlations with other constructs. Model fit was judged using multiple indices: Chi-square/degrees of freedom (χ²/df 0.90), Tucker–Lewis Index (TLI > 0.90), Root Mean Square Error of Approximation (RMSEA < 0.08), and Standardized Root Mean Square Residual (SRMR < 0.08) (Hair et al., 2019 ; Kline, 2016). Next, the structural model was estimated to test direct and indirect pathways. Path coefficients (β) were evaluated for significance, and R² values were inspected to appraise explanatory power. Mediation analysis followed the bootstrapping procedure outlined by Zhao, Lynch, and Chen ( 2010 ), generating 5,000 bootstrap samples to obtain bias‐corrected confidence intervals for indirect effects of Digital Commerce Activation on Competitive Advantage via Brand Capital and Market Penetration. Effect sizes (f²) were calculated to determine each predictor’s practical contribution to the endogenous constructs (Cohen, 1988; Hair et al., 2019 ). Collectively, these analyses ensured rigorous validation of the measurement model and robust testing of hypothesized relationships within a covariance‐based SEM framework. 4.0 Results 4.1 Background characteristics of Respondents and SMEs under study In Table 2 , the majority of respondents were aged 25–34 (49%), followed by 35–44 (29%). Most had tertiary education (53.2%), with others holding vocational (18.1%) or secondary education (24.5%). Trading was the dominant industry (73.3%). Respondents were nearly evenly split between business owners (51.2%) and managers (48.8%). Most firms lacked credit access (68.8%). In terms of size, 64.6% were small enterprises, while 35.4% were medium-sized. Sole proprietorships dominated legal status (71%), followed by partnerships (24%) and limited companies (5%). These demographics reflect a youthful, educated, and entrepreneurial respondent base operating mainly in trading sectors, with limited access to credit and smaller firm sizes. This profile suggests that digital commerce strategies and brand-building efforts are shaped by resource constraints, adaptability, and a preference for practical, scalable solutions. The predominance of sole proprietorships also implies leaner, more agile decision-making. These contextual characteristics are essential for interpreting how digital commerce activation, market penetration, and brand capital jointly influence competitive advantage among SMEs in resource-limited settings. Table 2 Background Characteristics of Respondents (N = 404) Variable Category Frequency Percent (%) Age of Respondent Under 25 60 14.9 25–34 198 49.0 35–44 117 29.0 45–54 26 6.4 55 and above 3 0.7 Education Level No formal education 5 1.2 Primary 12 3.0 Secondary 99 24.5 Tertiary 215 53.2 Vocational/Technical 73 18.1 Industry Type Manufacturing 8 2.0 Service 100 24.8 Trading 296 73.3 Position of respondent in the Firm Business Owner 207 51.2 Manager/Supervisor 197 48.8 Access to Credit No 278 68.8 Yes 126 31.2 Firm Size by Employees Small (5–49 employees) 261 64.6 Medium (50–99 employees) 143 35.4 Legal Status Limited Company 20 5.0 Partnership 97 24.0 Sole Trader 287 71.0 4.2 Correlation Analysis Among Study Constructs To examine the associations among study constructs, Pearson correlation analysis was conducted (Table 3 ). The results revealed statistically significant positive correlations among all variables at the 0.01 level (2-tailed). DCA exhibited strong correlations with BC (r = .696) and MP (r = .545), indicating that digital activation strategies are closely aligned with market and branding outcomes. CA was moderately correlated with DCA (r = .517), MP (r = .588), and BC (r = .531), suggesting a strong interplay between digital mechanisms and competitive positioning in firms. Table 3 Correlation Matrix (N = 405) Variables DCA MP BC CA DCA 1 MP .545** 1 BC .696** .693** 1 CA .517** .588** .531** 1 Note: p < .01 (2-tailed). All correlation coefficients marked ** are statistically significant. 4.3 Measurement Model 4.3.1 Assessment of Construct Reliability and Validity of the Measurement Model To determine the reliability and validity of the measurement model, a construct reliability and validity assessment was conducted. As shown in Table 4 , the results confirm that all constructs exhibit strong convergent validity and internal consistency reliability. All standardized item loadings exceed the recommended threshold of 0.60, with most items above 0.70, indicating that each item meaningfully represents its underlying construct (Hair et al., 2019 ; Fornell & Larcker, 1981 ). The Average Variance Extracted (AVE) values range from 0.708 to 0.805, which surpass the minimum recommended threshold of 0.50, confirming that the constructs explain more than half of the variance in their respective indicators. Additionally, the Composite Reliability (CR) values range from 0.903 to 0.943, and all Cronbach’s Alpha coefficients exceed 0.86, indicating strong internal consistency across constructs (Hair et al., 2019 ). Further, to assess discriminant validity, the Fornell-Larcker criterion was applied, as presented in Table 5 . The square roots of the AVE for each construct (shown diagonally in the matrix) are greater than the inter-construct correlations (off-diagonal values), which confirms satisfactory discriminant validity (Fornell & Larcker, 1981 ). For example, the square root of AVE for DCA is 0.906, which is higher than its correlations with MP (0.545), BC (0.696), and CA (0.517). This pattern is consistently observed across all other constructs. These findings collectively support that the measurement model is both reliable and valid, providing a robust foundation for structural equation modeling and subsequent hypothesis testing. Table 4 Construct Reliability and Validity Table (Factor Loadings, AVE, CR, Cronbach’s Alpha) Factor Item Item Narrative Std. Loading AVE CR Cronbach’s Alpha DCA DCA1 Our firm uses digital platforms to reach and engage customers 0.917 0.805 0.943 0.901 DCA2 We adopt social commerce tools for business expansion 0.895 DCA3 Our commerce strategy integrates digital touchpoints 0.934 DCA4 Digital tools drive customer conversion in our business 0.850 MP MP1 We have extended market reach through digital technologies 0.792 0.709 0.903 0.862 MP2 Digital platforms have increased our customer base 0.841 MP3 We access new markets via digital channels 0.649 MP4 Our online presence has grown significantly 0.715 BC BC1 Our digital presence enhances our brand recognition 0.734 0.708 0.915 0.872 BC2 Customers associate quality with our digital brand 0.642 BC3 Our brand is trusted in online environments 0.762 BC4 We consistently communicate our brand online 0.756 BC5 Our digital marketing reinforces brand loyalty 0.735 CA CA1 Our digital capabilities give us a competitive edge 0.851 0.710 0.926 0.882 CA2 Digital strategies enhance our performance 0.796 CA3 We make strategic decisions based on digital insights 0.676 CA4 Digital tools improve our strategic agility 0.844 CA5 We continuously leverage digital innovations for competitiveness 0.760 Table 5 Fornell-Larcker Criterion for Assessing Discriminant Validity Among Constructs Constructs DCA MP BC CA DCA 0.906 MP 0.545 0.806 BC 0.696 0.693 0.789 CA 0.517 0.588 0.531 0.796 4.3.2 Common Method Bias (CMB) To assess the potential presence of CMB in the data, we conducted Harman’s single-factor test as recommended by Podsakoff et al. (2003). All measurement items were subjected to exploratory factor analysis using unrotated principal component analysis. The results revealed that the first factor accounted for only 49.2% of the total variance, which is below the critical threshold of 50%, suggesting that common method variance is not a major concern in this study. Additionally, we ensured methodological remedies were incorporated during instrument design, such as item randomization, assurance of respondent anonymity, and clear separation of constructs, further minimizing the risk of CMB. Therefore, both procedural and statistical evidence confirm that common method bias does not significantly threaten the validity of the results. 4.4 Structural Model Analysis 4.4.1 Assessment of Structural Model Fit and Predictive Power To determine the adequacy of the structural model, several goodness-of-fit indices were evaluated, as summarized in Table 6 . The model demonstrates acceptable fit based on key threshold criteria commonly cited in structural equation modeling literature (Hair et al., 2019 ; Kline, 2016). The Chi-Square/Degrees of Freedom ratio (χ²/df) was 3.257, which is marginally above the ideal threshold of ≤ 3, but still within an acceptable range for complex models. The Root Mean Square Error of Approximation (RMSEA) stood at 0.075, indicating a good approximation of model fit, as values below 0.08 are generally acceptable (Hu & Bentler, 1999). Further, the Comparative Fit Index (CFI = 0.933), Tucker-Lewis Index (TLI = 0.923), and Normed Fit Index (NFI = 0.907) all exceeded the recommended threshold of 0.90, demonstrating strong comparative model fit. Additionally, the R-squared values for the endogenous constructs Strategic Digital Advantage (48.6%), MP (43.9%), and Brand Capital (37.1%) indicate that the exogenous predictors explain a substantial proportion of variance in the key outcome variables. These findings confirm the model’s robustness and explanatory power. Table 6 Summary of Structural Model Fit Indices and Acceptable Thresholds Fit Index Observed Value Threshold R-Squared (CA) 48.6% N/A R-Squared (BC) 37.1% N/A R-Squared (MP) 43.9% N/A Chi-Square/df (χ²/df) 3.257 ≤ 3 RMSEA 0.075 < 0.08 CFI 0.933 ≥ 0.90 TLI (NNFI) 0.923 ≥ 0.90 NFI 0.907 ≥ 0.90 4.4.2 Direct Effects Analysis The structural model results presented in Table 7 provide empirical support for several hypothesized relationships. Notably, H1 and H2 are supported, indicating that DCA significantly influences both BC (β = 0.609, SE = 0.051, p < 0.001) and MP (β = 0.663, SE = 0.046, p < 0.001). These findings emphasize the foundational role of DCA in enhancing firms’ digital visibility and reach. H4 is also supported, with a substantial effect of BC on CA (β = 0.697, SE = 0.090, p < 0.001), highlighting how strong digital brand positioning contributes to strategic advantage in the digital landscape. However, H3, which posited a direct effect of DCA on CA, was marginally significant (β = 0.118, SE = 0.083, p = 0.070) and therefore not strongly supported. Both H5 (MP → CA; β = 0.060, p = 0.291) and H6 (Firm Size → CA; β = 0.017, p = 0.647) were not supported, indicating these paths are statistically insignificant. Overall, the results suggest that DCA is a key enabler of digital outcomes, but strategic advantage is primarily attained through strong digital brand capital. Table 7 Direct Effects Hypothesis Path Std (β) SE p-value Supported? H1 DCA → BC 0.609 0.051 < 0.001 Yes H2 DCA → MP 0.663 0.046 < 0.001 Yes H3 DCA → CA 0.118 0.083 0.070 Marginal / No H4 BC → CA 0.697 0.090 < 0.001 Yes H5 MP → CA 0.060 0.088 0.291 No H6 Firm Size → CA 0.017 0.044 0.647 No *** p < 0.001; ** p < 0.01; * p < 0.05 4.4.3 Indirect Effects (Mediation Analysis) To further examine the mechanisms through which DCA contributes to Firm Competitive advantage, mediation analysis was performed, and the results are summarized in Table 8 . The findings reveal that BC significantly mediates the relationship between DCA and CA, with a standardized indirect effect of 0.424 (SE = 0.065, p < 0.001). This result supports Hypothesis H4a and suggests that digital branding serves as a key strategic conduit through which digital commerce investments enhance competitive advantage. In contrast, the mediation effect of MP was not statistically significant (β = 0.040, SE = 0.057, p = 0.291), providing no support for Hypothesis H4b. This implies that while expanding digital market reach is valuable, it does not sufficiently explain the pathway from DCA to CA. The findings reinforce the strategic importance of cultivating Brand Capital over mere market expansion. Table 8 Indirect Effects (Mediation Paths) Hypothesis Indirect Path Indirect Effect (β) SE p-value Supported? H7 DCA → BC → CA 0.424 0.065 < 0.001 Yes H8 DCA → MP → CA 0.040 0.057 0.291 No Figure 2 visually illustrates the structural model, highlighting the standardized path coefficients, measurement loadings, and R-squared values for BC (37.1%), MP (43.9%), and CA (48.6%) as explained by DCA and other predictors. 5.0 Discussion This study explored how DCA influences CA in resource-constrained SMEs, examining the mediating roles of BC and MP. Drawing on the RBV and DC Theory, we sought to (1) assess DCA’s direct effects on BC and MP; (2) evaluate BC’s and MP’s direct influences on CA; and (3) test BC’s and MP’s mediating roles in channeling DCA into CA. RBV posits that lasting CA emerges from resources and capabilities that are Valuable, Rare, Inimitable, and Non-substitutable (VRIN), whereas DC Theory emphasizes firms’ capacity to integrate, reconfigure, and renew resources in response to dynamic environments. By situating DCA as a dynamic capability that enables SMEs to convert digital investments into VRIN assets, this research extends both theoretical perspectives in a low-resource context. Our findings affirm that DCA serves as a powerful enabler of both BC and MP. Specifically, SMEs actively deploying digital platforms, social commerce tools, and digital payment systems significantly strengthened their BC, measured through digital brand awareness, perceived quality, loyalty, and associations, as well as expanded their digital reach. This aligns with prior research indicating that digital adoption is necessary but not sufficient for sustained advantage. Studies in Eastern Europe, such as Dumitriu et al. ( 2019 ), show that Romanian SMEs leveraging digital marketing tools in conjunction with intentional brand-building efforts realize greater stakeholder trust and loyalty. Similarly, Marolt et al. ( 2022 ) demonstrate that relational social commerce capabilities, built through continuous digital engagement, are critical for translating digital presence into brand equity. In resource-constrained settings like Uganda, our evidence suggests that the same microfoundational routines (personalized content, customer feedback loops, consistent digital storytelling) underlie BC formation, confirming that DCA must be coupled with deliberate brand management practices (Eisenhardt & Martin, 2000 ; Teece, 2007). The more intriguing insight emerges when contrasting BC and MP as channels from DCA to CA. Although DCA markedly enhanced MP, allowing SMEs to access previously unreachable market segments at low cost, MP neither directly conferred CA nor mediated DCA’s impact on CA. This finding refines classical marketing tenets asserting that broader market share yields economies of scale, bargaining power, and superior performance (Porter, 1985 ; Kotler & Keller, 2016 ). In resource-constrained digital markets, however, switching costs are minimal and digital offerings can be rapidly imitated (Edeling & Himme, 2018 ). Our results mirror meta-analytic evidence that marginal market share gains produce negligible profitability when rivals can replicate promotions and targeting strategies almost instantly. This dynamic is amplified in contexts where SMEs lack deep pockets to sustain extensive marketing budgets; digital reach becomes a commoditized resource rather than a VRIN asset. By embedding MP and BC within a single structural model, we demonstrate empirically that only BC functions as a VRIN mediator. Whereas MP characterized by digital audience expansion operates as a threshold capability easily matched by competitors, BC embodies intangible assets that resist imitation. Studies in Ghana (Odoom & Mensah, 2019 ) and Kenya (Gitonga et al., 2025 ) support this interpretation, showing that brand orientation coupled with innovation or social media capabilities yields superior performance relative to mere digital expansion. In our sample of Ugandan SMEs, digital reach did not translate into sustainable rents: digital campaigns, influencer tie-ins, and geo-targeted ads could be cloned within hours, rendering MP gains fleeting. As such, prioritizing reach alone risks expending scarce resources on efforts that competitors replicate before any enduring advantage can accrue. In stark contrast, BC exerted a robust direct effect on CA and fully mediated the DCA–CA relationship. This confirms RBV’s central assertion that intangible resources, particularly customer-based brand equity, constitute quintessential VRIN assets (Barney, 1991 ; Keller, 2003). Empirical evidence from diverse contexts validates BC’s strategic value: Monfort et al. ( 2025 ) find that sustainability-driven digital communications in Spain significantly boost consumer trust and brand loyalty, which in turn elevate CA. In Romania, digital marketing tools aligned with sustainability goals bolstered BC, leading to heightened competitive positioning (Dumitriu et al., 2019 ). In Ghana, Odoom and Mensah ( 2019 ) demonstrate that BC augmented by social media and innovation capabilities directly correlates with superior SME performance. Together, these studies confirm that BC transforms digital interactions into relational capital, emotional resonance, and trust that competitors cannot readily replicate precisely the attributes required for sustained CA. DC Theory further elucidates why BC, rather than MP, mediates DCA’s impact on CA. DCA, as a dynamic capability, encapsulates a firm’s ability to sense evolving consumer preferences (e.g., emergent social media trends), seize market opportunities (e.g., targeted digital campaigns), and transform internal operations to reinforce BC (Teece, 2018; Warner & Wäger, 2019 ). In our Ugandan context, SMEs that engaged in message testing, iterative feedback loops, and community engagement effectively nurtured BC. For instance, digital routines that solicit customer reviews, foster user-generated content, and deliver tailored brand narratives engender emotional bonds that transcend mere transactional relationships. Similar observations in Slovenia (Marolt et al., 2022 ) illustrate how relational social commerce capability, cultivated through sustained digital engagement, drives competitiveness. Thus, SMEs that deliberately convert digital touchpoints into consistent brand experiences craft BC as a dynamic resource, enabling them to capture CA through customer loyalty and credibility that are inherently difficult to replicate. This interpretation aligns with broader digital branding scholarship. Under digital disintermediation, brand personality and active customer engagement are paramount to prevent commoditization of offerings (Gielens & Steenkamp, 2019 ). Digital co-creation and user-generated content become essential levers for maintaining brand equity, as consumers increasingly seek authenticity and participatory experiences (Kencebay & Ertugan, 2025 ). Our findings echo Saeed, Grover, and Hwang’s ( 2005 ) assertion that e-commerce capabilities alone do not drive performance unless integrated with customer service and relational capabilities. In resource-constrained environments, where budgets and infrastructural support are limited, BC emerges as a strategic equalizer. Wiid, Senooane, and Cant ( 2024 ) demonstrate that African SMEs investing in digital brand narratives, social media storytelling, and influencer collaborations see marked gains in customer retention despite financial constraints. Likewise, Suryaningsih and Abadi ( 2024 ) find in Asia-Pacific B2B chemicals that BC, comprising brand awareness, perceived quality, loyalty, and associations, significantly enhances competitiveness in commoditized markets. Collectively, these studies substantiate that BC is the linchpin of CA in digital contexts where resource constraints render scale and reach insufficient. 6.0 Implications Practical Implications SME managers should transition from merely pursuing broader market access to cultivating a distinctive, robust brand identity. They must emphasize digital narratives that highlight core values and purpose, create emotionally compelling content, and collaborate with influencers or micro-influencers to build trust. Engaging formats like polls, live Q&A sessions, and customer-generated testimonials deepen audience bonds, transforming casual interactions into lasting loyalty. Loyalty programs and systematic solicitation of customer feedback via social channels further strengthen connections, enabling SMEs to translate digital visibility into enduring relational capital. Establishing agile marketing processes is crucial in rapid digital environments. Leaders must employ analytics platforms to track consumer preferences and behavior patterns, detecting emerging trends early. Consistent A/B experiments on digital advertisements, email subject lines, social media imagery, or website elements identify which content resonates best with intended audiences. By refining messaging according to immediate insights and swiftly adjusting tactics, SMEs keep their branding responsive and adaptive. Training team members to respond promptly and empathetically to customer inquiries via live chat, social platforms, or messaging apps reinforces trust and fosters a sense of community, helping brands stand out in crowded digital spaces. Aligning digital touchpoints into a unified brand approach improves customer experience. Rather than isolating social media, e-commerce sites, and mobile applications, SMEs should maintain coherent visuals, tone, and messaging across all platforms. This omnichannel strategy delivers a seamless, professional brand presence whether a customer engages via social post, online storefront, or email newsletter. Additionally, investing in accessible support offerings, live chat assistance, AI-powered chatbots for routine queries, and transparent return policies demonstrates a commitment to customer satisfaction. When customers receive prompt, helpful assistance online, it reinforces the brand promise, builds loyalty, and encourages repeat purchases. Theoretical Implications This study extends RBV by demonstrating that BC functions as the pivotal intangible resource through which digital commerce activities yield competitive advantage for SMEs. It challenges the widespread belief that simply adopting digital tools, launching an e-commerce site, or establishing social media profiles automatically produces lasting benefits. Instead, our findings show that digital investments must be strategically funneled into building brand equity, awareness, loyalty, trust, and perceived quality to create a defensible advantage. This refinement of RBV’s application in digital contexts emphasizes that intangible assets must mediate technological adoption’s impact on firm performance. The research also advances DC Theory by identifying the specific micro foundational processes that enable SMEs to reconfigure digital resources into valuable brand assets. We highlight digital brand-building routines, personalized content creation, community engagement practices, and iterative customer feedback loops as vital capabilities for nurturing BC. By detailing how these processes unfold in resource-constrained environments, the study bridges the gap between the mere possession of digital tools and the development of enduring intangible assets. It underscores that SMEs must continuously adapt and learn to deploy digital tools effectively in order to strengthen their brand. Moreover, by establishing that DCA leads to Competitive Advantage primarily through BC rather than MP, this work informs more integrated frameworks for digital strategy. Future research should examine additional intangible resources, such as intellectual capital, relational capital, or organizational learning capabilities, and explore how they interact with digital capabilities to drive sustainable performance. This layered perspective encourages scholars to consider both resource endowment and the processes for resource orchestration when evaluating digital transformation initiatives in SMEs. Policy Implications To foster SME competitiveness, policymakers and development agencies should broaden digital support programs to include dedicated digital branding workshops. These workshops can equip entrepreneurs with skills to craft compelling brand narratives, engage customers through social media storytelling, and manage online reputations effectively. Hands-on training in content creation, visual design, and messaging consistency will enable SMEs to build a robust brand presence without requiring large marketing budgets. This targeted support ensures that digitalization efforts extend beyond basic website functionality to include strategic brand-building components. Governments should also invest in “digital trust” infrastructure to reduce transaction uncertainty and accelerate Brand Capital formation. Measures might include establishing secure digital payment platforms, enforcing robust consumer protection regulations, and granting certifications, like digital trust seals, that signal credibility. When small businesses can display official trust marks and adhere to clear, enforceable e-commerce standards, consumers feel more confident making online purchases. Lower perceived risk in digital transactions directly supports SMEs in building credibility and fostering customer loyalty, thereby strengthening their Brand Capital. Finally, policymakers should provide financial incentives specifically aimed at intangible asset development rather than merely subsidizing technology adoption. Introducing matching grants or tax incentives for SMEs that demonstrate measurable improvements in brand awareness, customer satisfaction, or online reputation can motivate small firms to invest in brand-building activities. Additionally, supporting the formation of cooperative branding consortia, such as creating collective trademarks or geographic indication labels, enables resource pooling for broader marketing initiatives. By facilitating joint branding efforts and rewarding investments in intangible assets, policymakers communicate that long-term competitiveness depends on brand equity as much as digital infrastructure. 7.0 Conclusions This study offers a robust examination of how DCA influences CA in resource-constrained SMEs, revealing that BC, not MP, serves as the critical conduit for digital investments to yield competitive advantage. By integrating RBV and DC Theory, we demonstrate that SMEs must transform digital adoption into VRIN brand assets through dynamic digital routines and relational engagement. The findings challenge conventional digitalization rhetoric that equates broader reach with sustained advantage, underscoring the necessity of prioritizing brand equity formation. For scholars, these results enrich theory by elucidating microfoundations for BC in digital contexts. For practitioners and policymakers, they provide actionable guidance: invest in brand-building routines, foster digital trust infrastructure, and incentivize intangible asset development to ensure SMEs can compete sustainably, even amid severe resource constraints. Limitations and Future Research While our study contributes important insights, it has limitations. First, reliance on snowball sampling may have introduced referral bias, potentially skewing toward more digitally savvy SMEs. Future research could leverage official registries or mixed-methods sampling to enhance representativeness. Second, the cross-sectional design precludes causal inference over time; longitudinal studies could illuminate how BC evolves and sustains CA as digital landscapes change. Third, our focus on urban districts in Uganda may limit generalizability; comparative studies across diverse LMICs or rural contexts would test whether BC’s mediating role holds under different infrastructural and institutional constraints. Finally, while we operationalized CA through perceptual measures (strategic edge, agility), incorporating firm-level performance metrics (e.g., growth rates, profitability) would strengthen empirical rigor. Declarations Ethical Approval and Consent to Participate Ethical approval was received from the Research Ethics Committee (REC) from Mbarara University of Science and Technology. The consent from the participates was captured in the research instrument. Consent for Publication Consent to publish was captured in the research tool. Funding No funding was received for the study. Author Contribution R.B. wrote the main manuscript text, conceptualized the study, contributed to developing the hypotheses, generated the literature review and wrote the final manuscript. C.S.B. contributed to the methodology write up, data collection and the analysis of the data. He also reviewed the final manuscript. References Achieng, M. S., & Malatji, M. (2022). Digital transformation of small and medium enterprises in sub-Saharan Africa: A scoping review. The Journal for Transdisciplinary Research in Southern Africa , 18 (1). https://doi.org/10.4102/td.v18i1.1257 Agaba, M. K., & Kalu, E. O. (2019). Brand equity and competitive advantage in alcoholic beverage products. In Int. J. Management and Network Economics (Vol. 4, Issue 3). Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108 Barua, A., Konana, P., Whinston, A. B., & Yin, F. (2004). An empirical investigation of net-enabled business value. In MIS Quarterly: Management Information Systems (Vol. 28, Issue 4, pp. 585–620). Management Information Systems Research Center. https://doi.org/10.2307/25148656 Belo, F., Lin, X., & Vitorino, M. A. (2014). Brand capital and firm value. Review of Economic Dynamics , 17 (1), 150–169. https://doi.org/10.1016/j.red.2013.05.001 Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). DIGITAL BUSINESS STRATEGY: TOWARD A NEXT GENERATION OF INSIGHTS (Vol. 37, Issue 2). http://ssrn.com/abstract=2742300https://ssrn.com/abstract=2742300 Bouwman, H., Nikou, S., & de Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? Telecommunications Policy , 43 (9). https://doi.org/10.1016/j.telpol.2019.101828 Bryman, A., & Bell, E. (2007). Business research methods (2nd ed.). Oxford University Press. Castiaux, A. (2012). Developing dynamic capabilities to meet sustainable development challenges. International Journal of Innovation Management , 16 (6). https://doi.org/10.1142/S1363919612400130 Charles, H., & Lester, M. (2024). Leveraging Digitalization for SME Growth: A Roadmap to Competitive Advantage . https://doi.org/10.13140/RG.2.2.35558.43841 Charles, H., & Lester, M. (2024). Leveraging Digitalization for SME Growth: A Roadmap to Competitive Advantage . https://doi.org/10.13140/RG.2.2.35558.43841 Chen, P., & Kim, S. K. (2023). The impact of digital transformation on innovation performance - The mediating role of innovation factors. Heliyon , 9 (3). https://doi.org/10.1016/j.heliyon.2023.e13916 Chen, Q., & Zhang, N. (2015). Does e-commerce provide a sustained competitive advantage? An investigation of survival and sustainability in growth-oriented enterprises. Sustainability (Switzerland) , 7 (2), 1411–1428. https://doi.org/10.3390/su7021411 Dumitriu, D., Militaru, G., Deselnicu, D. C., Niculescu, A., & Popescu, M. A. M. (2019). A perspective over modern SMEs: Managing brand equity, growth and sustainability through digital marketing tools and techniques. Sustainability (Switzerland) , 11 (7). https://doi.org/10.3390/su11072111 Edeling, A., & Himme, A. (2018). When does market share matter? New empirical generalizations from a meta-analysis of the market share-performance relationship. Journal of Marketing , 82 (3), 1–24. https://doi.org/10.1509/jm.16.0250 Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal , 21 (10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/113.0.CO;2-E Eriandani, R., & Winarno, W. A. (2023). ESG and firm performance: The role of digitalization. Journal of Accounting and Investment , 24 (3), 993–1010. https://doi.org/10.18196/jai.v24i3.20044 Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104 Gielens, K., & Steenkamp, J. B. E. M. (2019). Branding in the era of digital (dis)intermediation. International Journal of Research in Marketing , 36 (3), 367–384. https://doi.org/10.1016/j.ijresmar.2019.01.005 Gitonga, G., Kariuki, P., & Kimani, E. (2025). Market Penetration Strategies and Competitive Advantage of the Telecommunication Firms in Kenya. International Journal of Strategic Management , 4 (1), 1–26. https://doi.org/10.47604/ijsm.3171 Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. Journal of Management Information Systems , 35 (1), 220–265. https://doi.org/10.1080/07421222.2018.1440766 Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning. He, Q., Guaita-Martínez, J. M., & Botella-Carrubi, D. (2020). How brand equity affects firm productivity: The role of R&D and human capital. Economic Research-Ekonomska Istrazivanja , 33 (1), 2976–2992. https://doi.org/10.1080/1331677X.2019.1686045 Hussain, I., Mu, S., Mohiuddin, M., Danish, R. Q., & Sair, S. A. (2020). Effects of sustainable brand equity and marketing innovation on market performance in hospitality industry: Mediating effects of sustainable competitive advantage. Sustainability (Switzerland) , 12 (7). https://doi.org/10.3390/su12072939 International Trade Centre (ITC). (2022). SME Competitiveness Outlook 2022: Connected Services, Competitive Businesses . ITC, Geneva. Jovanovic, J. Š., Vujadinovic, R., Mitreva, E., Fragassa, C., & Vujovic, A. (2020). The relationship between E-commerce and firm performance: The mediating role of internet sales channels. Sustainability (Switzerland) , 12 (17). https://doi.org/10.3390/su12176993 Kaunda Mutuku, M., Muathe, S., & James, R. (2019). Mediating Effect of Competitive Advantage on the Relationship Between E-commerce Capability and Performance: Empirical Evidence from Commercial Banks in Kenya . 11 (17). https://doi.org/10.7176/EJBM Keller, K. L. (2013). Strategic brand management: Building, measuring, and managing brand equity (4th ed.). Pearson. Kencebay, B., & Ertugan, A. (2025). Understanding the Mediating Effect of Brand Equity on Sustainability and Omnichannel Operation and Phygital Experience. Sustainability (Switzerland) , 17 (5). https://doi.org/10.3390/su17051878 Kocak, A., Carsrud, A., & Oflazoglu, S. (2017). Market, entrepreneurial, and technology orientations: impact on innovation and firm performance. Management Decision , 55 (2), 248–270. https://doi.org/10.1108/MD-04-2015-0146 Konuk, S., Doruk, Ö. T., & Önal, Y. B. (2023). An empirical investigation of the relationship between brand value and firm value: Evidence from Turkey. International Journal of Finance and Economics . https://doi.org/10.1002/ijfe.2915 Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610. https://doi.org/10.1177/001316447003000308 Kump, B., Engelmann, A., Kessler, A., & Schweiger, C. (2019). Toward a dynamic capabilities scale: Measuring organizational sensing, seizing, and transforming capacities. Industrial and Corporate Change , 28 (5), 1149–1172. https://doi.org/10.1093/icc/dty054 Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing , 70 (4), 1–18. https://doi.org/10.1509/jmkg.70.4.1 Marolt, M., Zimmermann, H. D., & Pucihar, A. (2022). Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage. Sustainability (Switzerland) , 14 (22). https://doi.org/10.3390/su142215029 Monfort, A., López-Vázquez, B., & Sebastián-Morillas, A. (2025). Building trust in sustainable brands: Revisiting perceived value, satisfaction, customer service, and brand image. Sustainable Technology and Entrepreneurship , 4 (3), 100105. https://doi.org/10.1016/j.stae.2025.100105 Mutembei, C., & Wanjira Njuguna, J. (2019). COMPETITIVE STRATEGIES AND MARKET PENETRATION OF INSURANCE COMPANIES IN KENYA. International Academic Journal of Human Resource and Business Administration | , 3 (7), 552–571. http://www.iajournals.org/articles/iajhrba_v3_i7_552_571.pdf Odoom, R., & Mensah, P. (2019). Brand orientation and brand performance in SMEs: The moderating effects of social media and innovation capabilities. Management Research Review , 42 (1), 155–171. https://doi.org/10.1108/MRR-12-2017-0441 Odoom, R., Narteh, B., & Boateng, R. (2017). Branding in small- and medium-sized enterprises (SMEs): Current issues and research avenues. In Qualitative Market Research (Vol. 20, Issue 1, pp. 68–89). Emerald Group Publishing Ltd. https://doi.org/10.1108/QMR-12-2015-0091 Oduro, S., & Mensah-Williams, E. (2023). Marketing Capabilities and Competitive Performance in the SMEs Context: A Bi-Theoretical Perspective. Journal of Small Business Strategy , 33 (2), 17–35. https://doi.org/10.53703/001c.77458 OECD. (2019). OECD SME and Entrepreneurship Outlook 2019 . OECD Publishing, Paris. Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance . Free Press. Rajgopal, S., Venkatachalam, M., & Kotha, S. (2000). Does the Quality of Online Customer Experience Create a Sustainable Competitive Advantage for E-commerce Firms? Does the Quality of Online Customer Experience Create a Sustainable Competitive Advantage for E-commerce Firms? Does the Quality of Online Customer Experience Create a Sustainable Competitive Advantage for E-commerce Firms? Saeed, K. A., Grover, V., & Hwang, Y. (2005). The impact of e-commerce on firm performance. Journal of Strategic Information Systems, 14(4), 295–330. https://doi.org/10.1016/j.jsis.2005.10.003 Saunders, M. (2012). Choosing research participants. In Research methods for business students (6th ed., pp. 238–260). Pearson. Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed.). Pearson. Sudrajad, A. I., Tricahyono, D., Al-Amin, Zuwardi, Yulianti, E. B., Irnayenti, Ahmad, & Rosmawati, W. (2023). The Role of Digitalization Performance on Digital Business Strategy in Indonesia MSEMs. International Journal of Professional Business Review , 8 (6), e02260. https://doi.org/10.26668/businessreview/2023.v8i6.2260 Suryaningsih, W., & Abadi, F. (2024). Conceptual Exploration: The Roles of Brand Equity Towards Firm Competitive Advantage in Commodity Chemical Industry (pp. 697–711). https://doi.org/10.2991/978-94-6463-585-0_47 Susila, G. P. A. J., Purbawangsa, I. B. A., Henny Rahyuda, & Luh Gede Sri Artini. (2023). Competitive Advantage and Intellectual Capital as Mediators of the Influence of Corporate Governance on Firm Value. Jurnal Ilmiah Akuntansi , 8 (1), 206–224. https://doi.org/10.23887/jia.v8i1.59442 Sutrisno, Widodo, & Ausat, A. M. A. (2025). In-Depth Study of the Strategic Interaction between Electronic Commerce, Innovation, and Attainment of Competitive Advantage in the Context of SMEs. International Journal of Analysis and Applications , 23 . https://doi.org/10.28924/2291-8639-23-2025-78 Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal , 18 (7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:73.0.CO;2-Z Uganda Bureau of Statistics. (2022). Statistical abstract 2022. Author. UNCTAD. (2021). Digital Economy Report 2021: Cross-border data flows and development . United Nations Conference on Trade and Development, Geneva. Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning , 52 (3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001 Wiid, J., Senooane, B., & Cant, M. (2024). Small and medium-sized enterprise brand development in an emerging economy: The view of the owner/manager. Development Management , 23 (3), 50–59. https://doi.org/10.57111/devt/3.2024.50 World Bank. (2020). Digital Economy for Africa Initiative Report . World Bank, Washington, DC. World Bank. (2022). Digitalizing SMEs to Boost Competitiveness: Insights from Emerging Markets . World Bank, Washington, DC. World Economic Forum (WEF). (2021). The Future Readiness of SMEs: Mobilizing SME Sector for Sustainable Growth . World Economic Forum Report, Geneva. Zhao, X., Lynch, J. G., Jr., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257 Zoogah, B. D., Degbey, W. Y., & Elo, M. (2023). Industrial policy environments and the flourishing of African multinational enterprises. Journal of International Business Policy , 6 (4), 408–431. https://doi.org/10.1057/s42214-023-00171-2 Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 04 Oct, 2025 Read the published version in Future Business Journal → Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-7094233","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":489937667,"identity":"648e4bdf-8e17-4eef-9adb-fb152e1649ed","order_by":0,"name":"Rennie Bakashaba","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA8klEQVRIiWNgGAWjYDACCQZmIHmAwYCB+QDJWtgSgAwDkrTwGBCnxXx282ODH3/uyJuzn/m6mefPHwb+9gNskl/waJG5c8w4sbftmeHOntxtt3nbDBgkziSwScvgc5dEgvEB3obDjBsOgLQ0AB12g4FNWgKvlvTPB//8OWy/4fybZ7d5/hgwyBPWkmOczMN2OHHDjRy22zxsBgwGQC2SH/BpkTlTbCzbdjh554xnZjfnthnzGJ5JbLbGo4NBQrp9s+SbP4dtt/MnP7vx5o+cnNzxwwdv/sCnBx3wMDAwNjDzkKIFDBhJsmUUjIJRMAqGOwAAC5tQWgCn8FoAAAAASUVORK5CYII=","orcid":"","institution":"Mbarara university of Science and Technology","correspondingAuthor":true,"prefix":"","firstName":"Rennie","middleName":"","lastName":"Bakashaba","suffix":""},{"id":489937668,"identity":"94a8ccc8-5fcf-426a-a1ba-bf00b3f4fc5c","order_by":1,"name":"2.\tDedrix Stephenson Bindeeba","email":"","orcid":"","institution":"Mbarara university of Science and Technology","correspondingAuthor":false,"prefix":"","firstName":"2.\tDedrix","middleName":"Stephenson","lastName":"Bindeeba","suffix":""}],"badges":[],"createdAt":"2025-07-10 14:53:18","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-7094233/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-7094233/v1","draftVersion":[],"editorialEvents":[{"content":"https://doi.org/10.1186/s43093-025-00663-y","type":"published","date":"2025-10-04T15:58:08+00:00"}],"editorialNote":"","failedWorkflow":false,"files":[{"id":87595592,"identity":"82a98613-19d7-4df0-af3d-b9ee692df07e","added_by":"auto","created_at":"2025-07-25 15:50:30","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":73602,"visible":true,"origin":"","legend":"\u003cp\u003e\u003cem\u003eConceptual Model\u003c/em\u003e\u003c/p\u003e","description":"","filename":"floatimage11.png","url":"https://assets-eu.researchsquare.com/files/rs-7094233/v1/ea742d2554015c477d4a0a3b.png"},{"id":87595597,"identity":"fff76aae-296c-4857-aa66-6b42db2eed62","added_by":"auto","created_at":"2025-07-25 15:50:30","extension":"png","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":248452,"visible":true,"origin":"","legend":"\u003cp\u003e\u003cem\u003eSEM Path Model of DCA, MP, BC, and CA Relationships\u003c/em\u003e\u003c/p\u003e","description":"","filename":"floatimage2.png","url":"https://assets-eu.researchsquare.com/files/rs-7094233/v1/0fac1583e7f4aacc1da67254.png"},{"id":92884467,"identity":"6fcd2438-327e-4808-a1d8-cf3ef9d9e8c9","added_by":"auto","created_at":"2025-10-06 16:13:10","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1945637,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-7094233/v1/2de68870-3bf7-467a-9625-c8748caa454f.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Beyond Market Penetration: Leveraging Brand Capital for Competitive Advantage in Digitally-Driven SMEs in Resource-Constrained Settings","fulltext":[{"header":"1.0 Introduction","content":"\u003cp\u003eThe digital era has radically transformed competitive dynamics for small and medium-sized enterprises (SMEs). Rapid advances in broadband Internet, widespread smartphone adoption, and the proliferation of social media and e-commerce platforms have dramatically lowered entry barriers, enabling even micro-enterprises to reach customers far beyond traditional geographic confines at minimal cost (UNCTAD, \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; World Bank, \u003cspan citationid=\"CR57\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Kencebay \u0026amp; Ertugan, \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). In resource-constrained environments marked by underdeveloped infrastructure, limited access to finance, and regulatory uncertainty, Digital Commerce Activation (DCA) has become a critical enabler of SME growth and resilience (Gomber et al., \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2018\u003c/span\u003e; Sudrajad et al., \u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e); OECD, 2021). By leveraging e-commerce platforms, social commerce tools, and digital payment systems, SMEs can mitigate the disadvantages of a weak physical presence and engage consumers in real time (Achieng \u0026amp; Malatji, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Bouwman et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Q. Chen \u0026amp; Zhang, \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Odoom \u0026amp; Mensah, \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Recognizing this potential, international agencies and national policymakers have prioritized SME digitalization as a strategic avenue for job creation, poverty reduction, and broader economic development (ITC, 2022; OECD, \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; World Bank, \u003cspan citationid=\"CR58\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eDespite this enthusiasm, a persistent paradox has surfaced: many digitally active SMEs succeed in expanding their Market Penetration (MP) yet fail to secure lasting Competitive Advantage (CA) (Edeling \u0026amp; Himme, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e; Jovanovic et al., \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Classical marketing theories assert that a larger customer base drives economies of scale, revenue growth, and market power (Porter, \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e1985\u003c/span\u003e; Kotler \u0026amp; Keller, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2016\u003c/span\u003e). However, recent meta-analyses and empirical studies challenge this view, revealing that incremental increases in market share often yield only modest profitability gains in contexts where switching costs are low and digital imitation is rapid (Edeling \u0026amp; Himme, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). For instance, Edeling and Himme (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) demonstrate that small market share gains can translate into negligible profit increases when competitors replicate digital offerings. Likewise, (Charles \u0026amp; Lester, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) find that SMEs prioritizing digital expansion without embedding strategic digital capabilities often fail to sustain superior performance. Their findings highlight that digital growth must be supported by digital readiness, internal alignment, and organizational learning. These insights suggest that MP is necessary but insufficient for sustainable CA in digital contexts, where agility, distinctiveness, and integration are key to long-term advantage.\u003c/p\u003e\u003cp\u003eThe Resource-Based View (RBV) of the firm provides a useful lens to understand this paradox. According to RBV, enduring CA arises from resources that are Valuable, Rare, Inimitable, and Non-substitutable (VRIN) (Barney, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1991\u003c/span\u003e). While MP represents a threshold resource that competitors can easily secure through similar digital channels (Bharadwaj et al., \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2013\u003c/span\u003e; Konuk et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), Brand Capital (BC) encompassing brand awareness, perceived quality, loyalty, and associations constitutes a prototypical VRIN asset (Belo et al., \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2014\u003c/span\u003e; He et al., \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Luo \u0026amp; Bhattacharya, \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2006\u003c/span\u003ea). A strong BC confers customer loyalty, premium pricing power, and barriers to imitation, even when digital reach is commoditized (Dumitriu et al., \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Evidence from emerging markets reinforces this dynamic: Odoom \u0026amp; Mensah (\u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) show that Ghanaian SMEs with a brand orientation achieve superior performance when moderated by innovation and social media capabilities, and Wiid, Wiid et al. (\u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) document that African SMEs overcoming \u0026ldquo;brand barriers\u0026rdquo; see improved customer retention and perceived outcomes. Similarly, Agaba \u0026amp; Kalu (\u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) find that brand awareness and loyalty significantly predict competitive positioning in Uganda\u0026rsquo;s alcoholic beverage sector. These studies collectively underscore that BC, more than MP alone, serves as the linchpin for sustainable CA, particularly in resource-constrained environments.\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory further clarifies how BC can be developed and leveraged in rapidly changing digital markets. This perspective emphasizes that firms must continuously integrate, build, and reconfigure resources to adapt to evolving environments (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e1997\u003c/span\u003e). In the digital realm characterized by technological volatility, shifting consumer preferences, and intensifying competition SMEs require dynamic capabilities to sense emerging trends e.g., new social commerce opportunities, seize them through targeted digital campaigns, and transform operations to reinforce intangible assets like BC (Saeed et al., \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2005\u003c/span\u003e; Warner \u0026amp; W\u0026auml;ger, \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Bouwman et al. (\u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) emphasize that aligning digital strategy with business objectives is crucial for converting digital initiatives into competitive outcomes. Within the SME context, Marolt et al. (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), reveal that social media boosts business performance only when firms build relational social commerce capabilities and competitive advantage. Together, these findings suggest that while DCA provides essential infrastructure, it is the dynamic orchestration of digital resources into brand-building processes that enables SMEs to convert digital activation into enduring BC (Sudrajad et al., \u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Specific adaptive routines such as data-driven personalization, community engagement, and iterative feedback loops empower SMEs to continuously refine their brand narrative and deepen customer relationships.\u003c/p\u003e\u003cp\u003eAlthough these theoretical frameworks advance our understanding, integrative research on how DCA, MP, and BC converge to drive CA remains limited, especially for SMEs in low- and middle-income countries (LMICs). Most existing literature focuses on developed-economy SMEs or large corporations, leaving a gap in context-specific insights for resource-constrained settings (Kencebay \u0026amp; Ertugan, \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Rajgopal et al., \u003cspan citationid=\"CR44\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Susila et al., \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Gielens \u0026amp; Steenkamp (\u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) examine how digital disintermediation shifts branding power toward consumers in Belgium, but such dynamics may differ in low-infrastructure settings. Achieng \u0026amp; Malatji (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) identify digital illiteracy, financial constraints, and infrastructural limitations as critical barriers for SMEs in developing countries, challenges echoed by Oduro \u0026amp; Mensah-Williams (\u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) in African contexts. Likewise, Susila et al. (\u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) highlight how corporate governance and intellectual capital jointly drive firm value in ASEAN, affirming the strategic role of intangibles beyond BC. Yet, the integration of such resources with DCA in LMIC SMEs remains underexplored. Distinguishing between superficial MP effects and genuine gains in CA through enhanced BC is therefore essential.\u003c/p\u003e\u003cp\u003eTo address this gap, the present study proposes a theory-driven framework in which BC mediates the relationship between DCA and CA, while MP serves as a parallel but incomplete pathway. Specifically, the research investigates: (1) how DCA directly influences MP and BC; (2) the differential effects of MP and BC on CA; and (3) the mediating roles of MP and BC in channeling the effects of DCA into CA. By focusing on SMEs operating within a resource-constrained environment, we capture the unique challenges these firms face limited budgets for branding, rudimentary digital capabilities, and intense competitive pressures from both local and global players (Oduro \u0026amp; Mensah-Williams, \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Sudrajad et al., \u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Susila et al., \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). This context provides a rich setting to examine whether BC truly serves as the mechanism that converts digital reach into sustainable CA.\u003c/p\u003e\u003cp\u003eOur study makes three key theoretical contributions. First, it extends RBV by positioning BC as the primary VRIN resource through which digital investments can yield sustainable CA, thereby challenging the conventional emphasis on scale and reach (Luo \u0026amp; Bhattacharya, \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2006\u003c/span\u003eb; Suryaningsih \u0026amp; Abadi, \u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2024\u003c/span\u003e); Keller, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2013\u003c/span\u003e). Second, it enriches Dynamic Capabilities Theory by identifying specific adaptive routines such as digital brand-building processes, community engagement, and iterative customer feedback loops that enable SMEs to transform DCA into enduring strategic assets (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e1997\u003c/span\u003e; Warner \u0026amp; W\u0026auml;ger, \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Third, by examining these mechanisms within a resource-constrained setting, we respond to calls for more context-specific SME research in LMICs, offering insights that account for infrastructural, financial, and institutional constraints (Zoogah et al., \u003cspan citationid=\"CR61\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). In doing so, we establish a foundation for understanding how SMEs can leverage intangible assets rather than market penetration alone to secure lasting advantage in digital marketplaces.\u003c/p\u003e\u003cp\u003eIn summary, this study aims to illuminate the nuanced pathways through which DCA influences SME competitiveness in resource-constrained environments. By demonstrating the centrality of BC as a mediating resource and the insufficiency of MP alone we challenge conventional digitalization rhetoric and propose a robust, capabilities-driven framework. This framework will equip scholars with empirical insights to refine RBV and Dynamic Capabilities Theory in digital contexts, while guiding practitioners and policymakers on how SMEs can harness digital technologies and intangible resources to achieve sustainable advantage, even amid severe resource constraints. Future research might extend these insights by exploring cross-industry comparisons, examining complementary intangible resources (e.g., intellectual capital), and testing whether similar mechanisms hold across diverse LMIC geographies.\u003c/p\u003e"},{"header":"2.0 Literature Review","content":"\u003cp\u003e\u003cb\u003eTheoretical Review\u003c/b\u003e\u003c/p\u003e\u003cp\u003eThis study\u0026rsquo;s theoretical framework integrates the RBV and DC Theory to explain how DCA leads to CA among resource-constrained SMEs via BC, with MP as an intermediary outcome.\u003c/p\u003e\u003cp\u003eDCA, MP, BC, and CA are interrelated constructs that underpin SME success in digital environments. The RBV asserts that sustainable CA arises from resources that are Valuable, Rare, Inimitable, and Non-substitutable (VRIN) (Barney, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1991\u003c/span\u003e; Barney \u0026amp; Ray, 2021). In digital contexts, adopting e-commerce platforms, social media tools, and digital payment systems constitutes essential infrastructure but does not guarantee lasting advantage, as competitors can replicate these assets with relative ease (Bharadwaj et al., \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2013\u003c/span\u003e; Konuk et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Instead, RBV highlights that intangible assets most notably BC serve as strategic differentiators, converting digital reach into enduring CA. BC encompasses customer-based brand equity dimensions brand awareness, perceived quality, loyalty, and brand associations that shape consumer perceptions and drive preference (Aaker, 1996; Keller, 2003). By embedding trust, reputation, and emotional resonance, BC embodies VRIN attributes: it commands premium pricing, fosters repeat patronage, and resists imitation (Suryaningsih \u0026amp; Abadi, \u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Empirical studies in emerging economies reinforce BC\u0026rsquo;s primacy: Odoom \u0026amp; Mensah (\u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) show that Ghanaian SMEs with strong brand orientation outperform peers when augmented by innovation and social media capabilities, while Wiid, Wiid et al. (\u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) document that African SMEs investing in digital brand development achieve higher customer retention despite constrained budgets.\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory extends the Resource-Based View by explaining how firms adapt through processes of sensing, seizing, and transforming in volatile digital environments (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e1997\u003c/span\u003e). For SMEs, this means embedding adaptive routines that go beyond static digital adoption. Barua et al. (\u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2004\u003c/span\u003e) emphasize that digital business processes yield value only when aligned with strategic goals. P. Chen \u0026amp; Kim (\u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) show that innovation performance improves when digital transformation is mediated by absorptive capacity. Similarly, Marolt et al. (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) find that social media enhances SME performance only through relational commerce capabilities. Sudrajad et al. (\u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) reveal that digitalization drives performance when focused on value realization. These findings suggest that Digital Commerce Activation becomes a dynamic capability only when SMEs embed data-driven personalization, interactive brand learning, and iterative feedback loops within their marketing and branding ecosystems.\u003c/p\u003e\u003cp\u003eMP often emerges as a primary objective of DCA, as SMEs seek to broaden customer reach and revenue streams. However, MP alone lacks VRIN qualities because competitors can quickly replicate market-outreach tactics (Edeling \u0026amp; Himme, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). For example, Edeling \u0026amp; Himme (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) demonstrate that marginal increases in market share yield negligible profit improvements when switching costs are low and digital offerings are easily imitated. Konuk et al. (\u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) similarly observe that SMEs focusing solely on expansion without investing in distinctive capabilities struggle to sustain performance. Thus, MP represents a necessary but insufficient outcome of DCA; it signals digital adoption but does not in itself generate sustainable CA.\u003c/p\u003e\u003cp\u003eBy contrast, BC mediates the relationship between DCA and CA, capturing the value created when digital interactions strengthen brand equity. Studies of SME digitalization underscore BC\u0026rsquo;s central role. Dumitriu et al. (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) show that Romanian SMEs using digital marketing tools enhance BC and stakeholder trust when aligning digital and sustainability goals. Monfort et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) find that in Spain, sustainability-driven communication and customer satisfaction significantly predict brand trust. These insights align with RBV: BC transforms digital reach into relational capital that underlies CA. Moreover, the ASEAN study by SSusila et al. (\u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) validates that intangible assets, including BC, mediate corporate governance\u0026rsquo;s effect on firm value, further affirming BC\u0026rsquo;s VRIN status.\u003c/p\u003e\u003cp\u003eIn sum, RBV and Dynamic Capabilities Theory converge to assert that DCA\u0026rsquo;s impact on CA is mediated by BC rather than MP alone. DCA provides necessary digital infrastructure, but without dynamic routines to cultivate BC through consistent brand messaging, community engagement, and iterative learning SMEs risk expending resources on superficial MP gains. In resource-constrained settings, BC emerges as the linchpin: it transforms digital investments into enduring relational capital, enabling SMEs to compete despite infrastructural and financial limitations. This theoretical synthesis establishes BC as the critical mediator linking DCA to CA, substantiating why intangible assets must be prioritized over mere market expansion in digitally driven SME strategies.\u003c/p\u003e\u003cp\u003e\u003cb\u003eHypothesis Building\u003c/b\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eDigital Commerce Activation and Brand Capital\u003c/b\u003e\u003c/p\u003e\u003cp\u003eDCA involves SMEs adopting e-commerce platforms, social media channels, and digital payment systems to engage customers and articulate brand narratives. RBV posits that intangible assets such as BC encompassing brand awareness, perceived quality, loyalty, and associations are VRIN resources that generate sustainable advantage (Aaker, 1996; Keller, 2003). Empirical evidence supports this linkage: Dumitriu et al. (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) demonstrate that Romanian SMEs aligning digital marketing tools with sustainability goals significantly strengthen BC, while Monfort et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) confirm that sustainability-driven digital communication enhances consumer trust.\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory suggests that DCA becomes a true dynamic capability when SMEs embed iterative routines that reinforce BC such as personalized content, real-time feedback loops, and consistent brand messaging (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e1997\u003c/span\u003e). Bouwman et al. (\u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) and Hussain et al. (\u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) reveal that SMEs develop relational social commerce capabilities, another BC dimension through continuous digital engagement. Eriandani \u0026amp; Winarno (\u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) further find that BC is critical in commoditized B2B settings when digital tools reinforce perceived quality and loyalty. Thus, by transforming digital interactions into emotional resonance and trust, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH1\u003c/strong\u003e\u003cp\u003e\u003cem\u003eDigital Commerce Activation positively influences Brand Capital.\u003c/em\u003e\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eDigital Commerce Activation as a Catalyst for Market Penetration\u003c/b\u003e\u003c/p\u003e\u003cp\u003eMP measures SMEs\u0026rsquo; ability to broaden their customer base and enter new markets through digital channels. According to RBV, DCA can provide threshold infrastructure, but MP arises when SMEs leverage these tools to reach previously inaccessible segments Achieng \u0026amp; Malatji (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Jovanovic et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) find that EU SMEs\u0026rsquo; e-commerce platforms mediate online sales\u0026rsquo; impact on performance, facilitating broader reach. Similarly, Barua et al. (\u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2004\u003c/span\u003e) show that net-enabled business processes enhance operational efficiency, enabling entry into wider markets. Charles \u0026amp; Lester (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) emphasize assessing digital readiness and selecting suitable technologies as key enablers of MP.\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory further clarifies that DCA reduces reliance on physical infrastructure, allowing SMEs to access remote and underserved customers at minimal cost (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e1997\u003c/span\u003e). Mutembei \u0026amp; Wanjira Njuguna (\u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) report that Kenyan agrochemical firms achieve performance gains via digital MP strategies reaching remote clients. Kaunda Mutuku et al. (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) similarly document that Kenyan banks leverage e-commerce to enhance ROA by improving customer satisfaction. Gitonga et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) confirm that MP strategies drive CA in Kenya\u0026rsquo;s telecommunications sector. Thus, by extending digital reach and tapping underserved segments, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH2\u003c/strong\u003e\u003cp\u003e\u003cb\u003eDigital Commerce Activation has a positive influence on Market Penetration.\u003c/b\u003e\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eDigital Commerce Activation as a Driver of Competitive Advantage\u003c/b\u003e\u003c/p\u003e\u003cp\u003eCA emerges when SMEs leverage capabilities that rivals cannot easily replicate. RBV asserts that digital tools alone are threshold resources, but strategic integration with internal processes transforms them into CA drivers (Barney, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1991\u003c/span\u003e). Saeed et al. (\u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2005\u003c/span\u003e) find that U.S. firms\u0026rsquo; e-commerce capabilities yield performance gains only when integrated with customer service processes, indicating DCA must align with internal capabilities. DC Theory suggests that DCA fosters CA when SMEs continuously adapt digital tools to create agility, cost efficiencies, and rapid market responsiveness (Castiaux, \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2012\u003c/span\u003e; Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Kump et al., \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Kocak et al. (\u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) reveal that Turkish tech startups combine entrepreneurial marketing and digital readiness to amplify BC, which mediates performance. Marolt et al. (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) also show that social media-driven relational capabilities enhance SME competitiveness in Slovenia. Conversely, Edeling \u0026amp; Himme (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) demonstrate that MP alone yields marginal profit gains when digital offerings are easily imitated. Hence, by enabling SMEs to differentiate through agility, innovation, and brand-driven value, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH3\u003c/strong\u003e\u003cp\u003e\u003cem\u003eDigital Commerce Activation positively influences Firm Competitive Advantage.\u003c/em\u003e\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eBrand Capital as a Driver of Competitive Advantage\u003c/b\u003e\u003c/p\u003e\u003cp\u003eBC embodies customer-based brand equity awareness, perceived quality, loyalty, and associations that RBV recognizes as a VRIN resource (Keller, 2003). Empirical studies confirm BC\u0026rsquo;s strategic significance. Suryaningsih \u0026amp; Abadi (\u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) show in Asia-Pacific B2B chemicals that robust BC yields customer retention and premium pricing, directly bolstering CA. Dumitriu et al. (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) find that Romanian SMEs leveraging digital marketing tools and sustainability frameworks significantly strengthen BC, translating digital interactions into stakeholder trust. Odoom \u0026amp; Mensah (\u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) report that Ghanaian SMEs with strong brand orientation outperform peers by enhancing BC through social media capabilities. Dynamic Capabilities Theory further elucidates how BC fosters CA. Eisenhardt \u0026amp; Martin (\u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e) argue that adaptive routines such as co-creation, real-time feedback, and iterative messaging reinforce BC in turbulent markets. Monfort et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) demonstrate that sustainability-driven communication strategies in Spain enhance BC via perceived value and customer satisfaction, which in turn elevate CA. By continuously reconfiguring digital brand-building processes, SMEs embed BC as a source of resilience and differentiation. Thus, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH4\u003c/strong\u003e\u003cp\u003e\u003cem\u003eBrand Capital positively influences Firm Competitive Advantage.\u003c/em\u003e\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eMarket Penetration as a Contributor to Competitive Advantage\u003c/b\u003e\u003c/p\u003e\u003cp\u003eMP) reflects SMEs\u0026rsquo; expansion into new customer segments via digital channels, which can yield short-term performance improvements. Jovanovic et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) demonstrate that EU SMEs\u0026rsquo; MP through e-commerce platforms mediates digital investments to enhance performance, while Gitonga et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) find in Kenyan telecommunications that MP strategies explain 61% of variance in CA, moderated by regulatory factors. However, RBV warns that MP alone lacks VRIN attributes, as rivals can replicate digital reach (Achieng \u0026amp; Malatji, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Edeling \u0026amp; Himme, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e; Kaunda Mutuku et al., \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Kaunda Mutuku et al. (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) show that Kenyan banks\u0026rsquo; e-commerce capabilities improve ROA via customer satisfaction and operational efficiency, suggesting MP can indirectly influence CA when internal capabilities align.\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory suggests MP contributes to CA only when SMЕs continuously adapt. Marolt et al. (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) reveal that Slovenian SMEs employing social media achieve higher MP, but only when relational social commerce capabilities evolve. Sudrajad et al. (\u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) find that Indonesian MSMEs\u0026rsquo; MP through digital literacy yields CA only if mediated by digital performance outcomes. Thus, in resource-constrained contexts, MP supports CA when SMEs dynamically reconfigure digital resources and build complementary capabilities. Consequently, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH5\u003c/strong\u003e\u003cp\u003e\u003cem\u003eMarket Penetration positively influences Firm Competitive Advantage.\u003c/em\u003e\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eFirm Size\u0026rsquo;s Role in Shaping Competitive Advantage\u003c/b\u003e\u003c/p\u003e\u003cp\u003eFirm Size determines resource availability financial, human, and technological which RBV posits as critical for nurturing VRIN resources (Barney, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1991\u003c/span\u003e). Larger SMEs typically possess greater economies of scale, enabling investments in brand-building and digital infrastructure (Charles \u0026amp; Lester, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). Gitonga et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) demonstrate that in Kenyan retail, larger firms leverage broader distribution and marketing budgets to enhance CA. Similarly, Kaunda Mutuku et al. (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) find that commercial banks with greater asset bases achieve higher ROA through e-commerce-enabled operational efficiencies. However, size alone does not guarantee CA; it must be coupled with strategic resource deployment.\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory further emphasizes that larger firms must cultivate adaptive routines to translate size into advantage (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e). Oduro \u0026amp; Mensah-Williams (\u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) show that Ghanaian SMEs\u0026rsquo; marketing capabilities mediate size\u0026rsquo;s effect on performance, indicating that dynamic marketing routines product development, communication, and implementation help larger firms convert resources into CA. Charles \u0026amp; Lester (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) highlight that employee engagement and continuous learning in larger SMEs foster a digital culture, enabling rapid responses to market shifts. Therefore, while Firm Size provides necessary resources, its positive effect on CA depends on dynamic capabilities. Thus, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH6\u003c/strong\u003e\u003cp\u003e\u003cem\u003eFirm Size positively influences Firm Competitive Advantage.\u003c/em\u003e\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eBrand Capital Mediates the Relationship Between Digital Commerce Activation and Firm Competitive Advantage\u003c/b\u003e\u003c/p\u003e\u003cp\u003eDCA enables SMEs to deploy e-commerce platforms, social media channels, and digital payment systems, which under RBV function as threshold assets that must be leveraged into VRIN resources (Bharadwaj et al., \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2013\u003c/span\u003e). Empirical evidence indicates that DCA enhances BC by fostering brand awareness, perceived quality, loyalty, and associations. For instance, Dumitriu et al. (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) show that Romanian SMEs aligning digital marketing tools with sustainability goals significantly strengthen BC and stakeholder trust. Monfort et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) further confirm that sustainability-driven digital communication enhances consumer trust in Spain. These findings underscore that DCA fuels BC development, as SMEs craft personalized content, integrate feedback loops, and maintain consistent brand messaging across digital touchpoints (Charles \u0026amp; Lester, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2024\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory suggests that BC functions as a dynamic resource when SMEs continuously sense market feedback, seize brand-building opportunities, and reconfigure digital assets (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e1997\u003c/span\u003e). Kocak et al. (\u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2017\u003c/span\u003e) illustrate how Turkish tech startups\u0026rsquo; strategic capabilities and digital readiness amplify BC, which then mediates performance outcomes. Marolt et al. (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) reveal that relational social commerce capabilities, derived from digital engagement, bolster SME competitiveness. BC thus translates digital interactions into emotional resonance and loyalty, creating a VRIN resource that competitors cannot easily replicate. Consequently, DCA\u0026rsquo;s effect on CA occurs primarily through BC. Thus, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH7\u003c/strong\u003e\u003cp\u003e\u003cem\u003eBrand Capital mediates the relationship between Digital Commerce Activation and Firm Competitive Advantage.\u003c/em\u003e\u003c/p\u003e\u003c/p\u003e\u003cp\u003e\u003cb\u003eMarket Penetration Mediates the Relationship Between Digital Commerce Activation and Firm Competitive Advantage\u003c/b\u003e\u003c/p\u003e\u003cp\u003eDCA equips SMEs with affordable, scalable digital channels e-commerce platforms, social media, and digital payment systems that directly expand MP by reaching previously inaccessible customers (Barua et al., \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2004\u003c/span\u003e; Jovanovic et al., \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Under RBV, MP represents a threshold capability that can be easily imitated yet remains necessary for capturing market share (Barney, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1991\u003c/span\u003e). In resource-constrained contexts, DCA reduces reliance on physical infrastructure and allows SMEs to access remote consumers at minimal cost. For example, Kaunda Mutuku et al. (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) find that Kenyan banks leverage e-commerce capabilities to enhance ROA via improved customer satisfaction and efficiency.\u003c/p\u003e\u003cp\u003eDynamic Capabilities Theory postulates that MP contributes to Competitive Advantage (CA) when SMEs continuously sense market shifts, seize new segments, and reconfigure digital processes to serve evolving consumer needs (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece et al., \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e1997\u003c/span\u003e). Gitonga et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2025\u003c/span\u003e), confirm that MP strategies explain a significant share of variance in CA for Kenyan telecommunications firms, moderated by regulatory alignment. However, Edeling \u0026amp; Himme (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) caution that MP alone yields marginal profits when digital offerings are easily replicated, indicating that MP must be complemented by adaptive routines. Sudrajad et al. (\u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) show that Indonesian MSMEs\u0026rsquo; MP only enhances financial performance when mediated by digital performance capabilities. MP thus functions as a channel through which DCA enables scaling, which, when combined with other dynamic capabilities, strengthens CA. Thus, we hypothesize that:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eH8\u003c/strong\u003e\u003cp\u003e\u003cem\u003eMarket Penetration mediates the relationship between Digital Commerce Activation and Firm Competitive Advantage\u003c/em\u003e.\u003c/p\u003e\u003c/p\u003e\u003cp\u003eTo position the present study within the broader discourse on SME digital strategy and competitive advantage, Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e summarizes key studies on DCA, Brand Capital, Market Penetration, and Competitive Advantage, highlighting unresolved gaps that inform the present study. Most prior research treats these constructs in isolation or omits key mediators. Whereas Fig.\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e illustrates the proposed conceptual model, integrating DCA, BC, and MP as pathways to CA, with firm size as a moderator. The model tests both direct and mediated effects within SME contexts.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eKey Empirical and Review Studies on DCA, BC, MP, and CA: Unresolved Gaps Driving the Present Study\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"6\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eAuthor (Year)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eContext \u0026amp; Sample\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eTheory / Framework\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eVariables \u0026amp; Method\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003ePrincipal Findings\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eUnresolved Gaps That This Study Tackles\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDumitriu et al. (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eRomania; 250 SMEs in manufacturing and services\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eRBV; Sustainability Theory\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eDigital Marketing Tools \u0026amp; Techniques (DMTTs) \u0026rarr; Brand Equity; survey-based PLS‐SEM\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eStrategic use of DMTTs significantly enhances BC and stakeholder trust, resulting in higher customer loyalty and market competitiveness\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eFocuses narrowly on DMTTs without examining broader DCA or its direct link to CA; does not consider MP as a parallel pathway alongside BC.\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eMarolt et al. (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSlovenia; 180 SMEs in retail and services\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eDynamic Capabilities; Relational Social Commerce\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSocial Media Use \u0026rarr; Relational Social Commerce Capability \u0026rarr; Performance; survey and regression\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eSocial media alone does not directly affect performance; relational social commerce capability mediates its impact on CA, validating the importance of capability-building.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eOmits BC as a VRIN resource mediating DCA and CA; does not examine MP\u0026rsquo;s role.\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eJJovanovic et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eEU; 300 SMEs in manufacturing and retail\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eRBV; Channel Integration Framework\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eE-commerce Capabilities \u0026rarr; Internet‐Based Sales Channels \u0026rarr; Firm Performance; OLS regression\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eInternet-based sales channels mediate e‐commerce\u0026rsquo;s impact on SME performance, highlighting digital channel strategy\u0026rsquo;s importance for MP.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eFails to incorporate BC as a mediator; does not explore how DCA influences CA beyond MP, nor compare the relative effects of BC versus MP on CA.\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eMonfort et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2025\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSpain; 1,280 consumers of sustainable brands\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eConsumer Trust; Sustainable Branding\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003ePerceived Value, Satisfaction, Service, Brand Image \u0026rarr; BC; PLS-SEM\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003ePerceived value, customer satisfaction, customer service, and brand image significantly predict brand trust; sustainability-driven communication strategies strengthen BC.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eConcentrates on consumer trust in sustainable brands without linking DCA, BC, MP, and CA in SMEs; ignores MP and CA outcomes.\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eCharles \u0026amp; Lester (\u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2024\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eGlobal SMEs; multiple industries\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eRBV; Dynamic Capabilities\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eDigital Transformation Roadmap; case studies of DCA tools, digital readiness assessment, and culture\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eSMEs that assess digital readiness, select suitable technologies, and foster a digital culture achieve sustainable growth and competitiveness; barriers include limited resources and resistance to change.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eOffers a broad DCA roadmap but does not empirically link DCA to BC, MP, or CA; lacks mediation analysis to show how BC and MP transmit DCA\u0026rsquo;s effects into CA.\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eOdoom \u0026amp; Mensah (\u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eGhana; 220 SMEs across sectors\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eRBV; Social Media Capabilities\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eBrand Orientation (BC) \u0026times; Social Media \u0026amp; Innovation Capabilities \u0026rarr; SME Performance; survey and SEM\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eSocial media and innovation capabilities positively moderate BC\u0026rsquo;s effect on SME performance, especially in medium-sized firms; BC enhances communication and differentiation.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eDoes not integrate DCA as a broader construct or test its direct influence on BC and CA; overlooks MP and the joint effects of BC and MP on CA.\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cb\u003ePresent Study\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eResource-constrained SMEs; 405 firms across sectors\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eRBV; Dynamic Capabilities Theory\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003eDCA \u0026rarr; BC, MP \u0026rarr; CA; PLS-SEM mediation analysis\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u003cp\u003eDCA directly enhances BC and MP; BC fully mediates DCA\u0026rsquo;s effect on CA, whereas MP\u0026rsquo;s mediation is not significant, confirming BC\u0026rsquo;s VRIN role.\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eIntegrates DCA, BC, MP, and CA in a single model for resource-constrained SMEs; fills gap by empirically demonstrating BC\u0026rsquo;s central mediating role and MP\u0026rsquo;s insufficiency in generating CA.\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003e\u003c/p\u003e"},{"header":"3.0 Methodology","content":"\u003cp\u003e\u003cb\u003eResearch Design and Paradigm\u003c/b\u003e\u003c/p\u003e\u003cp\u003eThis study aimed to determine how DCA influences CA through BC and MP in resource-constrained SMEs. Adopting a positivist paradigm, we employed an explanatory research design with a quantitative approach to test causal relationships among DCA, BC, MP, and CA (Saunders, Lewis, \u0026amp; Thornhill, \u003cspan citationid=\"CR47\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). Drawing on the Resource‐Based View and Dynamic Capabilities Theory, we developed a mediation model and applied CB Structural Equation Modeling (CB‐SEM) for hypothesis testing.\u003c/p\u003e\u003cp\u003e\u003cb\u003eStudy Setting and Population\u003c/b\u003e\u003c/p\u003e\u003cp\u003eData collection took place in Kampala and Wakiso business districts regions collectively accounting for over 34 percent of Uganda\u0026rsquo;s SMEs and contributing approximately 70 percent of national GDP (Uganda Bureau of Statistics, \u003cspan citationid=\"CR53\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). These districts encompass diverse industries, including retail, services, manufacturing, and information technology, and represent both formal and informal enterprises. The target population comprised owner-managers or senior managers of SMEs that (1) maintained an active digital presence through platforms such as e‐commerce websites, social media pages, or digital payment systems; (2) were registered or operating within Kampala or Wakiso; and (3) had been in operation for at least one year, signifying a baseline level of digital adoption.\u003c/p\u003e\u003cp\u003e\u003cb\u003eSampling and Pilot Testing\u003c/b\u003e\u003c/p\u003e\u003cp\u003eThis study recognizes that employing a probabilistic sampling approach would have been ideal for selecting a representative sample from the target population and enhancing the generalizability of the findings. However, because no comprehensive public registry of digitally active SMEs exists, we were unable to implement random sampling techniques. As a result, we calculated a target sample size of 387 SMEs based on Krejcie and Morgan\u0026rsquo;s (\u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e1970\u003c/span\u003e) table for populations exceeding 100,000, ensuring a representative confidence level and margin of error. Due to the lack of a complete directory of digitally engaged SMEs in Kampala and Wakiso, we instead utilized snowball sampling. Initial participants were identified from the Uganda Investment Authority\u0026rsquo;s database of registered SMEs, selecting those that met our criteria of maintaining an active digital presence and at least one year of operation. Each of these SMEs was then asked to recommend additional digitally engaged firms, and this referral process continued until responses were obtained from 405 SMEs, slightly exceeding our target sample size.\u003c/p\u003e\u003cp\u003ePrior to the main data collection, a pilot test was conducted with 45 SMEs to evaluate item clarity, relevance, and internal consistency of the questionnaire. These pilot firms provided feedback on wording, context, and length, which led to minor revisions in item phrasing and response instructions. These adjustments ensured that each measurement covering DCA, BC, MP, and Firm Competitive Advantage was comprehensible and contextually appropriate across the diverse SME environments encountered in Kampala and Wakiso districts.\u003c/p\u003e\u003cp\u003e\u003cb\u003eInstrument and Measurement\u003c/b\u003e\u003c/p\u003e\u003cp\u003eA structured questionnaire was chosen for its cost-effectiveness and efficiency in gathering data from a moderately large sample (Saunders et al., n.d.). The instrument included three demographic questions (firm age, sector, digital engagement duration) and twenty items adapted from established sources to measure the key constructs. DCA was measured using four items adapted from Saeed et al. (\u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2005\u003c/span\u003e), and Jovanovic et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e)d Chen \u0026amp; Zhang (\u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2015\u003c/span\u003e) for example, \u0026ldquo;Our firm uses digital platforms to reach and engage customers\u0026rdquo; and \u0026ldquo;Digital tools drive customer conversion in our business.\u0026rdquo; BC employed five items adapted from Keller\u0026rsquo;s (2003) Customer-Based Brand Equity model and Atilgan, Aksoy, and Akinci (2005) to assess dimensions such as digital brand awareness (\u0026ldquo;Our digital presence enhances our brand recognition\u0026rdquo;), perceived quality, trust, consistent communication, and loyalty.\u003c/p\u003e\u003cp\u003eMarket Penetration comprised four items reflecting digital reach and customer base expansion, based on Jovanovic et al. (\u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and Gitonga et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2025\u003c/span\u003e), including \u0026ldquo;We have extended market reach through digital technologies.\u0026rdquo; CA was operationalized with five items adapted from Saeed et al. (\u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2005\u003c/span\u003e), focusing on digital agility (\u0026ldquo;Our digital capabilities give us a competitive edge\u0026rdquo;), strategic decision-making (\u0026ldquo;We make strategic decisions based on digital insights\u0026rdquo;), performance enhancement, operational agility, and sustained competitiveness. Each item used a five-point Likert scale (1\u0026thinsp;=\u0026thinsp;strongly disagree to 5\u0026thinsp;=\u0026thinsp;strongly agree). Prior to full deployment, the questionnaire was pretested with 45 SMEs to ensure clarity, relevance, and contextual appropriateness, leading to minor wording adjustments. This process ensured that all constructs were measured reliably and aligned with the theoretical framework.\u003c/p\u003e\u003cp\u003e\u003cb\u003eData Collection Procedure\u003c/b\u003e\u003c/p\u003e\u003cp\u003eOver an eight-week period, trained research assistants visited SMEs in person to explain the study\u0026rsquo;s objectives, secure informed consent, and distribute paper or electronic copies of the questionnaire. One week after initial distribution, reminders were sent via phone calls or email to increase response rates. For respondents with limited literacy or time constraints, the questionnaire was administered through face‐to‐face interviews to ensure completeness. All completed questionnaires were coded numerically to protect participant anonymity. Ethical approval was obtained from the [University\u0026rsquo;s Institutional Review Board], and participants were assured of confidentiality and voluntary participation.\u003c/p\u003e\u003cp\u003e\u003cb\u003eData Analysis\u003c/b\u003e\u003c/p\u003e\u003cp\u003eSurvey responses were entered into SPSS 27 for preliminary screening (IBM Corp., 2019). Descriptive statistics were computed to profile the sample by industry sector, firm size, and years of digital engagement (Hair, Black, Babin, \u0026amp; Anderson, \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Missing data amounting to less than 2 percent per item were handled through mean imputation (Hair et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eConfirmatory factor analysis (CFA) and structural model testing were conducted in AMOS 26. First, we assessed convergent validity by examining standardized factor loadings (all above 0.60), Average Variance Extracted (AVE\u0026thinsp;\u0026gt;\u0026thinsp;0.50), and Composite Reliability (CR\u0026thinsp;\u0026gt;\u0026thinsp;0.70) for each construct (Fornell \u0026amp; Larcker, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e1981\u003c/span\u003e; Hair et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Discriminant validity was evaluated by ensuring that each construct\u0026rsquo;s AVE exceeded its squared correlations with other constructs. Model fit was judged using multiple indices: Chi-square/degrees of freedom (χ\u0026sup2;/df\u0026thinsp;\u0026lt;\u0026thinsp;3), Comparative Fit Index (CFI\u0026thinsp;\u0026gt;\u0026thinsp;0.90), Tucker\u0026ndash;Lewis Index (TLI\u0026thinsp;\u0026gt;\u0026thinsp;0.90), Root Mean Square Error of Approximation (RMSEA\u0026thinsp;\u0026lt;\u0026thinsp;0.08), and Standardized Root Mean Square Residual (SRMR\u0026thinsp;\u0026lt;\u0026thinsp;0.08) (Hair et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Kline, 2016). Next, the structural model was estimated to test direct and indirect pathways. Path coefficients (β) were evaluated for significance, and R\u0026sup2; values were inspected to appraise explanatory power. Mediation analysis followed the bootstrapping procedure outlined by Zhao, Lynch, and Chen (\u003cspan citationid=\"CR60\" class=\"CitationRef\"\u003e2010\u003c/span\u003e), generating 5,000 bootstrap samples to obtain bias‐corrected confidence intervals for indirect effects of Digital Commerce Activation on Competitive Advantage via Brand Capital and Market Penetration. Effect sizes (f\u0026sup2;) were calculated to determine each predictor\u0026rsquo;s practical contribution to the endogenous constructs (Cohen, 1988; Hair et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Collectively, these analyses ensured rigorous validation of the measurement model and robust testing of hypothesized relationships within a covariance‐based SEM framework.\u003c/p\u003e"},{"header":"4.0 Results","content":"\u003cdiv id=\"Sec5\" class=\"Section2\"\u003e\u003ch2\u003e4.1 Background characteristics of Respondents and SMEs under study\u003c/h2\u003e\u003cp\u003eIn Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e, the majority of respondents were aged 25\u0026ndash;34 (49%), followed by 35\u0026ndash;44 (29%). Most had tertiary education (53.2%), with others holding vocational (18.1%) or secondary education (24.5%). Trading was the dominant industry (73.3%). Respondents were nearly evenly split between business owners (51.2%) and managers (48.8%). Most firms lacked credit access (68.8%). In terms of size, 64.6% were small enterprises, while 35.4% were medium-sized. Sole proprietorships dominated legal status (71%), followed by partnerships (24%) and limited companies (5%). These demographics reflect a youthful, educated, and entrepreneurial respondent base operating mainly in trading sectors, with limited access to credit and smaller firm sizes. This profile suggests that digital commerce strategies and brand-building efforts are shaped by resource constraints, adaptability, and a preference for practical, scalable solutions. The predominance of sole proprietorships also implies leaner, more agile decision-making. These contextual characteristics are essential for interpreting how digital commerce activation, market penetration, and brand capital jointly influence competitive advantage among SMEs in resource-limited settings.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eBackground Characteristics of Respondents (N\u0026thinsp;=\u0026thinsp;404)\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"4\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVariable\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCategory\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eFrequency\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003ePercent (%)\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"4\" rowspan=\"5\"\u003e\u003cp\u003eAge of Respondent\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eUnder 25\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e60\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e14.9\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e25\u0026ndash;34\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e198\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e49.0\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e35\u0026ndash;44\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e117\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e29.0\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e45\u0026ndash;54\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e26\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e6.4\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e55 and above\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.7\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"4\" rowspan=\"5\"\u003e\u003cp\u003eEducation Level\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eNo formal education\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e1.2\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePrimary\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e12\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e3.0\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSecondary\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e99\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e24.5\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eTertiary\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e215\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e53.2\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eVocational/Technical\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e73\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e18.1\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"2\" rowspan=\"3\"\u003e\u003cp\u003eIndustry Type\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eManufacturing\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e8\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e2.0\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eService\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e100\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e24.8\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eTrading\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e296\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e73.3\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u003cp\u003ePosition of respondent in the Firm\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBusiness Owner\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e207\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e51.2\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eManager/Supervisor\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e197\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e48.8\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u003cp\u003eAccess to Credit\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e278\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e68.8\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e126\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e31.2\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u003cp\u003eFirm Size by Employees\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSmall (5\u0026ndash;49 employees)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e261\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e64.6\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMedium (50\u0026ndash;99 employees)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e143\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e35.4\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"2\" rowspan=\"3\"\u003e\u003cp\u003eLegal Status\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eLimited Company\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e20\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e5.0\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePartnership\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e97\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e24.0\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eSole Trader\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e287\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e71.0\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec6\" class=\"Section2\"\u003e\u003ch2\u003e4.2 Correlation Analysis Among Study Constructs\u003c/h2\u003e\u003cp\u003eTo examine the associations among study constructs, Pearson correlation analysis was conducted (Table\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e). The results revealed statistically significant positive correlations among all variables at the 0.01 level (2-tailed). DCA exhibited strong correlations with BC (r\u0026thinsp;=\u0026thinsp;.696) and MP (r\u0026thinsp;=\u0026thinsp;.545), indicating that digital activation strategies are closely aligned with market and branding outcomes. CA was moderately correlated with DCA (r\u0026thinsp;=\u0026thinsp;.517), MP (r\u0026thinsp;=\u0026thinsp;.588), and BC (r\u0026thinsp;=\u0026thinsp;.531), suggesting a strong interplay between digital mechanisms and competitive positioning in firms.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eCorrelation Matrix (N\u0026thinsp;=\u0026thinsp;405)\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"5\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eVariables\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eMP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eBC\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eCA\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cb\u003eDCA\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cb\u003eMP\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e.545**\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cb\u003eBC\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e.696**\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e.693**\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003e\u003cb\u003eCA\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003e.517**\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e.588**\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u003cp\u003e.531**\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e1\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"5\"\u003e\u003cb\u003eNote: p\u0026thinsp;\u0026lt;\u0026thinsp;.01 (2-tailed).\u003c/b\u003e All correlation coefficients marked ** are statistically significant.\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec7\" class=\"Section2\"\u003e\u003ch2\u003e4.3 Measurement Model\u003c/h2\u003e\u003cdiv id=\"Sec8\" class=\"Section3\"\u003e\u003ch2\u003e4.3.1 Assessment of Construct Reliability and Validity of the Measurement Model\u003c/h2\u003e\u003cp\u003eTo determine the reliability and validity of the measurement model, a construct reliability and validity assessment was conducted. As shown in Table\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e, the results confirm that all constructs exhibit strong convergent validity and internal consistency reliability. All standardized item loadings exceed the recommended threshold of 0.60, with most items above 0.70, indicating that each item meaningfully represents its underlying construct (Hair et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Fornell \u0026amp; Larcker, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e1981\u003c/span\u003e). The Average Variance Extracted (AVE) values range from 0.708 to 0.805, which surpass the minimum recommended threshold of 0.50, confirming that the constructs explain more than half of the variance in their respective indicators. Additionally, the Composite Reliability (CR) values range from 0.903 to 0.943, and all Cronbach\u0026rsquo;s Alpha coefficients exceed 0.86, indicating strong internal consistency across constructs (Hair et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eFurther, to assess discriminant validity, the Fornell-Larcker criterion was applied, as presented in Table\u0026nbsp;\u003cspan refid=\"Tab5\" class=\"InternalRef\"\u003e5\u003c/span\u003e. The square roots of the AVE for each construct (shown diagonally in the matrix) are greater than the inter-construct correlations (off-diagonal values), which confirms satisfactory discriminant validity (Fornell \u0026amp; Larcker, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e1981\u003c/span\u003e). For example, the square root of AVE for DCA is 0.906, which is higher than its correlations with MP (0.545), BC (0.696), and CA (0.517). This pattern is consistently observed across all other constructs. These findings collectively support that the measurement model is both reliable and valid, providing a robust foundation for structural equation modeling and subsequent hypothesis testing.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eConstruct Reliability and Validity Table (Factor Loadings, AVE, CR, Cronbach\u0026rsquo;s Alpha)\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"7\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFactor\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eItem\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eItem Narrative\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eStd. Loading\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eAVE\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eCR\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e\u003cp\u003eCronbach\u0026rsquo;s Alpha\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDCA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOur firm uses digital platforms to reach and engage customers\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.917\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.805\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.943\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e\u003cp\u003e0.901\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eWe adopt social commerce tools for business expansion\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.895\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOur commerce strategy integrates digital touchpoints\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.934\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eDigital tools drive customer conversion in our business\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.850\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eMP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMP1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eWe have extended market reach through digital technologies\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.792\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.709\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.903\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e\u003cp\u003e0.862\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMP2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eDigital platforms have increased our customer base\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.841\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMP3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eWe access new markets via digital channels\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.649\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMP4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOur online presence has grown significantly\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.715\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eBC\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBC1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOur digital presence enhances our brand recognition\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.734\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.708\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.915\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e\u003cp\u003e0.872\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBC2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eCustomers associate quality with our digital brand\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.642\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBC3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOur brand is trusted in online environments\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.762\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBC4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eWe consistently communicate our brand online\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.756\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBC5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOur digital marketing reinforces brand loyalty\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.735\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eCA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCA1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eOur digital capabilities give us a competitive edge\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.851\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.710\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c6\"\u003e\u003cp\u003e0.926\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c7\"\u003e\u003cp\u003e0.882\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCA2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eDigital strategies enhance our performance\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.796\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCA3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eWe make strategic decisions based on digital insights\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.676\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCA4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eDigital tools improve our strategic agility\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.844\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eCA5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eWe continuously leverage digital innovations for competitiveness\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.760\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab5\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eFornell-Larcker Criterion for Assessing Discriminant Validity Among Constructs\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"5\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eConstructs\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eMP\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eBC\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003eCA\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eDCA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e\u003cb\u003e0.906\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eMP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.545\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e\u003cb\u003e0.806\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eBC\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.696\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.693\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e\u003cb\u003e0.789\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eCA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.517\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.588\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.531\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e\u003cb\u003e0.796\u003c/b\u003e\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec9\" class=\"Section3\"\u003e\u003ch2\u003e4.3.2 Common Method Bias (CMB)\u003c/h2\u003e\u003cp\u003eTo assess the potential presence of CMB in the data, we conducted Harman\u0026rsquo;s single-factor test as recommended by Podsakoff et al. (2003). All measurement items were subjected to exploratory factor analysis using unrotated principal component analysis. The results revealed that the first factor accounted for only 49.2% of the total variance, which is below the critical threshold of 50%, suggesting that common method variance is not a major concern in this study. Additionally, we ensured methodological remedies were incorporated during instrument design, such as item randomization, assurance of respondent anonymity, and clear separation of constructs, further minimizing the risk of CMB. Therefore, both procedural and statistical evidence confirm that common method bias does not significantly threaten the validity of the results.\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e\u003cdiv id=\"Sec10\" class=\"Section2\"\u003e\u003ch2\u003e4.4 Structural Model Analysis\u003c/h2\u003e\u003cdiv id=\"Sec11\" class=\"Section3\"\u003e\u003ch2\u003e4.4.1 Assessment of Structural Model Fit and Predictive Power\u003c/h2\u003e\u003cp\u003eTo determine the adequacy of the structural model, several goodness-of-fit indices were evaluated, as summarized in Table\u0026nbsp;\u003cspan refid=\"Tab6\" class=\"InternalRef\"\u003e6\u003c/span\u003e. The model demonstrates acceptable fit based on key threshold criteria commonly cited in structural equation modeling literature (Hair et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Kline, 2016). The Chi-Square/Degrees of Freedom ratio (χ\u0026sup2;/df) was 3.257, which is marginally above the ideal threshold of \u0026le;\u0026thinsp;3, but still within an acceptable range for complex models. The Root Mean Square Error of Approximation (RMSEA) stood at 0.075, indicating a good approximation of model fit, as values below 0.08 are generally acceptable (Hu \u0026amp; Bentler, 1999).\u003c/p\u003e\u003cp\u003eFurther, the Comparative Fit Index (CFI\u0026thinsp;=\u0026thinsp;0.933), Tucker-Lewis Index (TLI\u0026thinsp;=\u0026thinsp;0.923), and Normed Fit Index (NFI\u0026thinsp;=\u0026thinsp;0.907) all exceeded the recommended threshold of 0.90, demonstrating strong comparative model fit. Additionally, the R-squared values for the endogenous constructs Strategic Digital Advantage (48.6%), MP (43.9%), and Brand Capital (37.1%) indicate that the exogenous predictors explain a substantial proportion of variance in the key outcome variables. These findings confirm the model\u0026rsquo;s robustness and explanatory power.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab6\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 6\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eSummary of Structural Model Fit Indices and Acceptable Thresholds\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eFit Index\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eObserved Value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eThreshold\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eR-Squared (CA)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e48.6%\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eN/A\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eR-Squared (BC)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e37.1%\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eN/A\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eR-Squared (MP)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e43.9%\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003eN/A\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eChi-Square/df (χ\u0026sup2;/df)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e3.257\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e\u0026le;\u0026thinsp;3\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eRMSEA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.075\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e\u0026lt;\u0026thinsp;0.08\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eCFI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.933\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e\u0026ge;\u0026thinsp;0.90\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eTLI (NNFI)\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.923\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e\u0026ge;\u0026thinsp;0.90\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eNFI\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e\u003cp\u003e0.907\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e\u003cp\u003e\u0026ge;\u0026thinsp;0.90\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec12\" class=\"Section3\"\u003e\u003ch2\u003e4.4.2 Direct Effects Analysis\u003c/h2\u003e\u003cp\u003eThe structural model results presented in Table\u0026nbsp;\u003cspan refid=\"Tab7\" class=\"InternalRef\"\u003e7\u003c/span\u003e provide empirical support for several hypothesized relationships. Notably, H1 and H2 are supported, indicating that DCA significantly influences both BC (β\u0026thinsp;=\u0026thinsp;0.609, SE\u0026thinsp;=\u0026thinsp;0.051, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001) and MP (β\u0026thinsp;=\u0026thinsp;0.663, SE\u0026thinsp;=\u0026thinsp;0.046, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001). These findings emphasize the foundational role of DCA in enhancing firms\u0026rsquo; digital visibility and reach. H4 is also supported, with a substantial effect of BC on CA (β\u0026thinsp;=\u0026thinsp;0.697, SE\u0026thinsp;=\u0026thinsp;0.090, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001), highlighting how strong digital brand positioning contributes to strategic advantage in the digital landscape. However, H3, which posited a direct effect of DCA on CA, was marginally significant (β\u0026thinsp;=\u0026thinsp;0.118, SE\u0026thinsp;=\u0026thinsp;0.083, p\u0026thinsp;=\u0026thinsp;0.070) and therefore not strongly supported. Both H5 (MP \u0026rarr; CA; β\u0026thinsp;=\u0026thinsp;0.060, p\u0026thinsp;=\u0026thinsp;0.291) and H6 (Firm Size \u0026rarr; CA; β\u0026thinsp;=\u0026thinsp;0.017, p\u0026thinsp;=\u0026thinsp;0.647) were not supported, indicating these paths are statistically insignificant. Overall, the results suggest that DCA is a key enabler of digital outcomes, but strategic advantage is primarily attained through strong digital brand capital.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab7\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 7\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eDirect Effects\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"6\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHypothesis\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003ePath\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eStd (β)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSE\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003ep-value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eSupported?\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH1\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA \u0026rarr; BC\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.609\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.051\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e\u0026lt;\u0026thinsp;0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH2\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA \u0026rarr; MP\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.663\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.046\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e\u0026lt;\u0026thinsp;0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH3\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA \u0026rarr; CA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.118\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.083\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.070\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eMarginal / No\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH4\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eBC \u0026rarr; CA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.697\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.090\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e\u0026lt;\u0026thinsp;0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH5\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eMP \u0026rarr; CA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.060\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.088\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.291\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH6\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eFirm Size \u0026rarr; CA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.017\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.044\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.647\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"6\"\u003e*** p\u0026thinsp;\u0026lt;\u0026thinsp;0.001; ** p\u0026thinsp;\u0026lt;\u0026thinsp;0.01; * p\u0026thinsp;\u0026lt;\u0026thinsp;0.05\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec13\" class=\"Section3\"\u003e\u003ch2\u003e4.4.3 Indirect Effects (Mediation Analysis)\u003c/h2\u003e\u003cp\u003eTo further examine the mechanisms through which DCA contributes to Firm Competitive advantage, mediation analysis was performed, and the results are summarized in Table\u0026nbsp;\u003cspan refid=\"Tab8\" class=\"InternalRef\"\u003e8\u003c/span\u003e. The findings reveal that BC significantly mediates the relationship between DCA and CA, with a standardized indirect effect of 0.424 (SE\u0026thinsp;=\u0026thinsp;0.065, p\u0026thinsp;\u0026lt;\u0026thinsp;0.001). This result supports Hypothesis H4a and suggests that digital branding serves as a key strategic conduit through which digital commerce investments enhance competitive advantage. In contrast, the mediation effect of MP was not statistically significant (β\u0026thinsp;=\u0026thinsp;0.040, SE\u0026thinsp;=\u0026thinsp;0.057, p\u0026thinsp;=\u0026thinsp;0.291), providing no support for Hypothesis H4b. This implies that while expanding digital market reach is valuable, it does not sufficiently explain the pathway from DCA to CA. The findings reinforce the strategic importance of cultivating Brand Capital over mere market expansion.\u003c/p\u003e\u003cp\u003e\u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab8\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e\u003cdiv class=\"CaptionNumber\"\u003eTable 8\u003c/div\u003e\u003cdiv class=\"CaptionContent\"\u003e\u003cp\u003eIndirect Effects (Mediation Paths)\u003c/p\u003e\u003c/div\u003e\u003c/caption\u003e\u003ccolgroup cols=\"6\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u003cp\u003eHypothesis\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e\u003cp\u003eIndirect Path\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e\u003cp\u003eIndirect Effect (β)\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e\u003cp\u003eSE\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u003cp\u003ep-value\u003c/p\u003e\u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e\u003cp\u003eSupported?\u003c/p\u003e\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH7\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA \u0026rarr; BC \u0026rarr; CA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.424\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.065\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e\u0026lt;\u0026thinsp;0.001\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eYes\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u003cp\u003eH8\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e\u003cp\u003eDCA \u0026rarr; MP \u0026rarr; CA\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c3\"\u003e\u003cp\u003e0.040\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e\u003cp\u003e0.057\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c5\"\u003e\u003cp\u003e0.291\u003c/p\u003e\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u003cp\u003eNo\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/colgroup\u003e\u003c/table\u003e\u003c/div\u003e\u003c/p\u003e\u003cp\u003eFigure \u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e visually illustrates the structural model, highlighting the standardized path coefficients, measurement loadings, and R-squared values for BC (37.1%), MP (43.9%), and CA (48.6%) as explained by DCA and other predictors.\u003c/p\u003e\u003cp\u003e\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e"},{"header":"5.0 Discussion","content":"\u003cp\u003eThis study explored how DCA influences CA in resource-constrained SMEs, examining the mediating roles of BC and MP. Drawing on the RBV and DC Theory, we sought to (1) assess DCA\u0026rsquo;s direct effects on BC and MP; (2) evaluate BC\u0026rsquo;s and MP\u0026rsquo;s direct influences on CA; and (3) test BC\u0026rsquo;s and MP\u0026rsquo;s mediating roles in channeling DCA into CA. RBV posits that lasting CA emerges from resources and capabilities that are Valuable, Rare, Inimitable, and Non-substitutable (VRIN), whereas DC Theory emphasizes firms\u0026rsquo; capacity to integrate, reconfigure, and renew resources in response to dynamic environments. By situating DCA as a dynamic capability that enables SMEs to convert digital investments into VRIN assets, this research extends both theoretical perspectives in a low-resource context.\u003c/p\u003e\u003cp\u003eOur findings affirm that DCA serves as a powerful enabler of both BC and MP. Specifically, SMEs actively deploying digital platforms, social commerce tools, and digital payment systems significantly strengthened their BC, measured through digital brand awareness, perceived quality, loyalty, and associations, as well as expanded their digital reach. This aligns with prior research indicating that digital adoption is necessary but not sufficient for sustained advantage. Studies in Eastern Europe, such as Dumitriu et al. (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e), show that Romanian SMEs leveraging digital marketing tools in conjunction with intentional brand-building efforts realize greater stakeholder trust and loyalty. Similarly, Marolt et al. (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) demonstrate that relational social commerce capabilities, built through continuous digital engagement, are critical for translating digital presence into brand equity. In resource-constrained settings like Uganda, our evidence suggests that the same microfoundational routines (personalized content, customer feedback loops, consistent digital storytelling) underlie BC formation, confirming that DCA must be coupled with deliberate brand management practices (Eisenhardt \u0026amp; Martin, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2000\u003c/span\u003e; Teece, 2007).\u003c/p\u003e\u003cp\u003eThe more intriguing insight emerges when contrasting BC and MP as channels from DCA to CA. Although DCA markedly enhanced MP, allowing SMEs to access previously unreachable market segments at low cost, MP neither directly conferred CA nor mediated DCA\u0026rsquo;s impact on CA. This finding refines classical marketing tenets asserting that broader market share yields economies of scale, bargaining power, and superior performance (Porter, \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e1985\u003c/span\u003e; Kotler \u0026amp; Keller, \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2016\u003c/span\u003e). In resource-constrained digital markets, however, switching costs are minimal and digital offerings can be rapidly imitated (Edeling \u0026amp; Himme, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). Our results mirror meta-analytic evidence that marginal market share gains produce negligible profitability when rivals can replicate promotions and targeting strategies almost instantly. This dynamic is amplified in contexts where SMEs lack deep pockets to sustain extensive marketing budgets; digital reach becomes a commoditized resource rather than a VRIN asset.\u003c/p\u003e\u003cp\u003eBy embedding MP and BC within a single structural model, we demonstrate empirically that only BC functions as a VRIN mediator. Whereas MP characterized by digital audience expansion operates as a threshold capability easily matched by competitors, BC embodies intangible assets that resist imitation. Studies in Ghana (Odoom \u0026amp; Mensah, \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) and Kenya (Gitonga et al., \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) support this interpretation, showing that brand orientation coupled with innovation or social media capabilities yields superior performance relative to mere digital expansion. In our sample of Ugandan SMEs, digital reach did not translate into sustainable rents: digital campaigns, influencer tie-ins, and geo-targeted ads could be cloned within hours, rendering MP gains fleeting. As such, prioritizing reach alone risks expending scarce resources on efforts that competitors replicate before any enduring advantage can accrue.\u003c/p\u003e\u003cp\u003eIn stark contrast, BC exerted a robust direct effect on CA and fully mediated the DCA\u0026ndash;CA relationship. This confirms RBV\u0026rsquo;s central assertion that intangible resources, particularly customer-based brand equity, constitute quintessential VRIN assets (Barney, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e1991\u003c/span\u003e; Keller, 2003). Empirical evidence from diverse contexts validates BC\u0026rsquo;s strategic value: Monfort et al. (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) find that sustainability-driven digital communications in Spain significantly boost consumer trust and brand loyalty, which in turn elevate CA. In Romania, digital marketing tools aligned with sustainability goals bolstered BC, leading to heightened competitive positioning (Dumitriu et al., \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). In Ghana, Odoom and Mensah (\u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) demonstrate that BC augmented by social media and innovation capabilities directly correlates with superior SME performance. Together, these studies confirm that BC transforms digital interactions into relational capital, emotional resonance, and trust that competitors cannot readily replicate precisely the attributes required for sustained CA.\u003c/p\u003e\u003cp\u003eDC Theory further elucidates why BC, rather than MP, mediates DCA\u0026rsquo;s impact on CA. DCA, as a dynamic capability, encapsulates a firm\u0026rsquo;s ability to sense evolving consumer preferences (e.g., emergent social media trends), seize market opportunities (e.g., targeted digital campaigns), and transform internal operations to reinforce BC (Teece, 2018; Warner \u0026amp; W\u0026auml;ger, \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). In our Ugandan context, SMEs that engaged in message testing, iterative feedback loops, and community engagement effectively nurtured BC. For instance, digital routines that solicit customer reviews, foster user-generated content, and deliver tailored brand narratives engender emotional bonds that transcend mere transactional relationships. Similar observations in Slovenia (Marolt et al., \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) illustrate how relational social commerce capability, cultivated through sustained digital engagement, drives competitiveness. Thus, SMEs that deliberately convert digital touchpoints into consistent brand experiences craft BC as a dynamic resource, enabling them to capture CA through customer loyalty and credibility that are inherently difficult to replicate.\u003c/p\u003e\u003cp\u003eThis interpretation aligns with broader digital branding scholarship. Under digital disintermediation, brand personality and active customer engagement are paramount to prevent commoditization of offerings (Gielens \u0026amp; Steenkamp, \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Digital co-creation and user-generated content become essential levers for maintaining brand equity, as consumers increasingly seek authenticity and participatory experiences (Kencebay \u0026amp; Ertugan, \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). Our findings echo Saeed, Grover, and Hwang\u0026rsquo;s (\u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2005\u003c/span\u003e) assertion that e-commerce capabilities alone do not drive performance unless integrated with customer service and relational capabilities. In resource-constrained environments, where budgets and infrastructural support are limited, BC emerges as a strategic equalizer. Wiid, Senooane, and Cant (\u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) demonstrate that African SMEs investing in digital brand narratives, social media storytelling, and influencer collaborations see marked gains in customer retention despite financial constraints. Likewise, Suryaningsih and Abadi (\u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) find in Asia-Pacific B2B chemicals that BC, comprising brand awareness, perceived quality, loyalty, and associations, significantly enhances competitiveness in commoditized markets. Collectively, these studies substantiate that BC is the linchpin of CA in digital contexts where resource constraints render scale and reach insufficient.\u003c/p\u003e"},{"header":"6.0 Implications","content":"\u003cp\u003e\u003cb\u003ePractical Implications\u003c/b\u003e\u003c/p\u003e\u003cp\u003eSME managers should transition from merely pursuing broader market access to cultivating a distinctive, robust brand identity. They must emphasize digital narratives that highlight core values and purpose, create emotionally compelling content, and collaborate with influencers or micro-influencers to build trust. Engaging formats like polls, live Q\u0026amp;A sessions, and customer-generated testimonials deepen audience bonds, transforming casual interactions into lasting loyalty. Loyalty programs and systematic solicitation of customer feedback via social channels further strengthen connections, enabling SMEs to translate digital visibility into enduring relational capital.\u003c/p\u003e\u003cp\u003eEstablishing agile marketing processes is crucial in rapid digital environments. Leaders must employ analytics platforms to track consumer preferences and behavior patterns, detecting emerging trends early. Consistent A/B experiments on digital advertisements, email subject lines, social media imagery, or website elements identify which content resonates best with intended audiences. By refining messaging according to immediate insights and swiftly adjusting tactics, SMEs keep their branding responsive and adaptive. Training team members to respond promptly and empathetically to customer inquiries via live chat, social platforms, or messaging apps reinforces trust and fosters a sense of community, helping brands stand out in crowded digital spaces.\u003c/p\u003e\u003cp\u003eAligning digital touchpoints into a unified brand approach improves customer experience. Rather than isolating social media, e-commerce sites, and mobile applications, SMEs should maintain coherent visuals, tone, and messaging across all platforms. This omnichannel strategy delivers a seamless, professional brand presence whether a customer engages via social post, online storefront, or email newsletter. Additionally, investing in accessible support offerings, live chat assistance, AI-powered chatbots for routine queries, and transparent return policies demonstrates a commitment to customer satisfaction. When customers receive prompt, helpful assistance online, it reinforces the brand promise, builds loyalty, and encourages repeat purchases.\u003c/p\u003e\u003cp\u003e\u003cb\u003eTheoretical Implications\u003c/b\u003e\u003c/p\u003e\u003cp\u003eThis study extends RBV by demonstrating that BC functions as the pivotal intangible resource through which digital commerce activities yield competitive advantage for SMEs. It challenges the widespread belief that simply adopting digital tools, launching an e-commerce site, or establishing social media profiles automatically produces lasting benefits. Instead, our findings show that digital investments must be strategically funneled into building brand equity, awareness, loyalty, trust, and perceived quality to create a defensible advantage. This refinement of RBV\u0026rsquo;s application in digital contexts emphasizes that intangible assets must mediate technological adoption\u0026rsquo;s impact on firm performance.\u003c/p\u003e\u003cp\u003eThe research also advances DC Theory by identifying the specific micro foundational processes that enable SMEs to reconfigure digital resources into valuable brand assets. We highlight digital brand-building routines, personalized content creation, community engagement practices, and iterative customer feedback loops as vital capabilities for nurturing BC. By detailing how these processes unfold in resource-constrained environments, the study bridges the gap between the mere possession of digital tools and the development of enduring intangible assets. It underscores that SMEs must continuously adapt and learn to deploy digital tools effectively in order to strengthen their brand.\u003c/p\u003e\u003cp\u003eMoreover, by establishing that DCA leads to Competitive Advantage primarily through BC rather than MP, this work informs more integrated frameworks for digital strategy. Future research should examine additional intangible resources, such as intellectual capital, relational capital, or organizational learning capabilities, and explore how they interact with digital capabilities to drive sustainable performance. This layered perspective encourages scholars to consider both resource endowment and the processes for resource orchestration when evaluating digital transformation initiatives in SMEs.\u003c/p\u003e\u003cp\u003e\u003cb\u003ePolicy Implications\u003c/b\u003e\u003c/p\u003e\u003cp\u003eTo foster SME competitiveness, policymakers and development agencies should broaden digital support programs to include dedicated digital branding workshops. These workshops can equip entrepreneurs with skills to craft compelling brand narratives, engage customers through social media storytelling, and manage online reputations effectively. Hands-on training in content creation, visual design, and messaging consistency will enable SMEs to build a robust brand presence without requiring large marketing budgets. This targeted support ensures that digitalization efforts extend beyond basic website functionality to include strategic brand-building components.\u003c/p\u003e\u003cp\u003eGovernments should also invest in \u0026ldquo;digital trust\u0026rdquo; infrastructure to reduce transaction uncertainty and accelerate Brand Capital formation. Measures might include establishing secure digital payment platforms, enforcing robust consumer protection regulations, and granting certifications, like digital trust seals, that signal credibility. When small businesses can display official trust marks and adhere to clear, enforceable e-commerce standards, consumers feel more confident making online purchases. Lower perceived risk in digital transactions directly supports SMEs in building credibility and fostering customer loyalty, thereby strengthening their Brand Capital.\u003c/p\u003e\u003cp\u003eFinally, policymakers should provide financial incentives specifically aimed at intangible asset development rather than merely subsidizing technology adoption. Introducing matching grants or tax incentives for SMEs that demonstrate measurable improvements in brand awareness, customer satisfaction, or online reputation can motivate small firms to invest in brand-building activities. Additionally, supporting the formation of cooperative branding consortia, such as creating collective trademarks or geographic indication labels, enables resource pooling for broader marketing initiatives. By facilitating joint branding efforts and rewarding investments in intangible assets, policymakers communicate that long-term competitiveness depends on brand equity as much as digital infrastructure.\u003c/p\u003e"},{"header":"7.0 Conclusions","content":"\u003cp\u003eThis study offers a robust examination of how DCA influences CA in resource-constrained SMEs, revealing that BC, not MP, serves as the critical conduit for digital investments to yield competitive advantage. By integrating RBV and DC Theory, we demonstrate that SMEs must transform digital adoption into VRIN brand assets through dynamic digital routines and relational engagement. The findings challenge conventional digitalization rhetoric that equates broader reach with sustained advantage, underscoring the necessity of prioritizing brand equity formation. For scholars, these results enrich theory by elucidating microfoundations for BC in digital contexts. For practitioners and policymakers, they provide actionable guidance: invest in brand-building routines, foster digital trust infrastructure, and incentivize intangible asset development to ensure SMEs can compete sustainably, even amid severe resource constraints.\u003c/p\u003e\u003cp\u003e\u003cb\u003eLimitations and Future Research\u003c/b\u003e\u003c/p\u003e\u003cp\u003eWhile our study contributes important insights, it has limitations. First, reliance on snowball sampling may have introduced referral bias, potentially skewing toward more digitally savvy SMEs. Future research could leverage official registries or mixed-methods sampling to enhance representativeness. Second, the cross-sectional design precludes causal inference over time; longitudinal studies could illuminate how BC evolves and sustains CA as digital landscapes change. Third, our focus on urban districts in Uganda may limit generalizability; comparative studies across diverse LMICs or rural contexts would test whether BC\u0026rsquo;s mediating role holds under different infrastructural and institutional constraints. Finally, while we operationalized CA through perceptual measures (strategic edge, agility), incorporating firm-level performance metrics (e.g., growth rates, profitability) would strengthen empirical rigor.\u003c/p\u003e"},{"header":"Declarations","content":"\u003cp\u003e\u003cstrong\u003eEthical Approval and Consent to Participate\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eEthical approval was received from the Research Ethics Committee (REC) from Mbarara University of Science and Technology. The consent from the participates was captured in the research instrument.\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eConsent for Publication\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eConsent to publish was captured in the research tool.\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eFunding\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNo funding was received for the study.\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\u003ch2\u003eAuthor Contribution\u003c/h2\u003e\u003cp\u003eR.B. wrote the main manuscript text, conceptualized the study, contributed to developing the hypotheses, generated the literature review and wrote the final manuscript. C.S.B. contributed to the methodology write up, data collection and the analysis of the data. He also reviewed the final manuscript.\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\u003cli\u003e\u003cspan\u003eAchieng, M. S., \u0026amp; Malatji, M. (2022). Digital transformation of small and medium enterprises in sub-Saharan Africa: A scoping review. \u003cem\u003eThe Journal for Transdisciplinary Research in Southern Africa\u003c/em\u003e, \u003cem\u003e18\u003c/em\u003e(1). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.4102/td.v18i1.1257\u003c/span\u003e\u003cspan address=\"10.4102/td.v18i1.1257\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eAgaba, M. K., \u0026amp; Kalu, E. O. (2019). Brand equity and competitive advantage in alcoholic beverage products. In \u003cem\u003eInt. J. Management and Network Economics\u003c/em\u003e (Vol. 4, Issue 3).\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eBarney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99\u0026ndash;120. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1177/014920639101700108\u003c/span\u003e\u003cspan address=\"10.1177/014920639101700108\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eBarua, A., Konana, P., Whinston, A. B., \u0026amp; Yin, F. (2004). An empirical investigation of net-enabled business value. In \u003cem\u003eMIS Quarterly: Management Information Systems\u003c/em\u003e (Vol. 28, Issue 4, pp. 585\u0026ndash;620). Management Information Systems Research Center. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.2307/25148656\u003c/span\u003e\u003cspan address=\"10.2307/25148656\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eBelo, F., Lin, X., \u0026amp; Vitorino, M. A. (2014). Brand capital and firm value. \u003cem\u003eReview of Economic Dynamics\u003c/em\u003e, \u003cem\u003e17\u003c/em\u003e(1), 150\u0026ndash;169. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.red.2013.05.001\u003c/span\u003e\u003cspan address=\"10.1016/j.red.2013.05.001\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eBharadwaj, A., El Sawy, O. A., Pavlou, P. A., \u0026amp; Venkatraman, N. (2013). \u003cem\u003eDIGITAL BUSINESS STRATEGY: TOWARD A NEXT GENERATION OF INSIGHTS\u003c/em\u003e (Vol. 37, Issue 2). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttp://ssrn.com/abstract=2742300https://ssrn.com/abstract=2742300\u003c/span\u003e\u003cspan address=\"http://ssrn.com/abstract=2742300https://ssrn.com/abstract=2742300\" targettype=\"URL\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eBouwman, H., Nikou, S., \u0026amp; de Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? \u003cem\u003eTelecommunications Policy\u003c/em\u003e, \u003cem\u003e43\u003c/em\u003e(9). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.telpol.2019.101828\u003c/span\u003e\u003cspan address=\"10.1016/j.telpol.2019.101828\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eBryman, A., \u0026amp; Bell, E. (2007). Business research methods (2nd ed.). Oxford University Press.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eCastiaux, A. (2012). Developing dynamic capabilities to meet sustainable development challenges. \u003cem\u003eInternational Journal of Innovation Management\u003c/em\u003e, \u003cem\u003e16\u003c/em\u003e(6). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1142/S1363919612400130\u003c/span\u003e\u003cspan address=\"10.1142/S1363919612400130\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eCharles, H., \u0026amp; Lester, M. (2024). \u003cem\u003eLeveraging Digitalization for SME Growth: A Roadmap to Competitive Advantage\u003c/em\u003e. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.13140/RG.2.2.35558.43841\u003c/span\u003e\u003cspan address=\"10.13140/RG.2.2.35558.43841\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eCharles, H., \u0026amp; Lester, M. (2024). \u003cem\u003eLeveraging Digitalization for SME Growth: A Roadmap to Competitive Advantage\u003c/em\u003e. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.13140/RG.2.2.35558.43841\u003c/span\u003e\u003cspan address=\"10.13140/RG.2.2.35558.43841\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eChen, P., \u0026amp; Kim, S. K. (2023). The impact of digital transformation on innovation performance - The mediating role of innovation factors. \u003cem\u003eHeliyon\u003c/em\u003e, \u003cem\u003e9\u003c/em\u003e(3). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.heliyon.2023.e13916\u003c/span\u003e\u003cspan address=\"10.1016/j.heliyon.2023.e13916\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eChen, Q., \u0026amp; Zhang, N. (2015). Does e-commerce provide a sustained competitive advantage? An investigation of survival and sustainability in growth-oriented enterprises. \u003cem\u003eSustainability (Switzerland)\u003c/em\u003e, \u003cem\u003e7\u003c/em\u003e(2), 1411\u0026ndash;1428. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.3390/su7021411\u003c/span\u003e\u003cspan address=\"10.3390/su7021411\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eDumitriu, D., Militaru, G., Deselnicu, D. C., Niculescu, A., \u0026amp; Popescu, M. A. M. (2019). A perspective over modern SMEs: Managing brand equity, growth and sustainability through digital marketing tools and techniques. \u003cem\u003eSustainability (Switzerland)\u003c/em\u003e, \u003cem\u003e11\u003c/em\u003e(7). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.3390/su11072111\u003c/span\u003e\u003cspan address=\"10.3390/su11072111\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eEdeling, A., \u0026amp; Himme, A. (2018). When does market share matter? New empirical generalizations from a meta-analysis of the market share-performance relationship. \u003cem\u003eJournal of Marketing\u003c/em\u003e, \u003cem\u003e82\u003c/em\u003e(3), 1\u0026ndash;24. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1509/jm.16.0250\u003c/span\u003e\u003cspan address=\"10.1509/jm.16.0250\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eEisenhardt, K. M., \u0026amp; Martin, J. A. (2000). Dynamic capabilities: What are they? \u003cem\u003eStrategic Management Journal\u003c/em\u003e, \u003cem\u003e21\u003c/em\u003e(10\u0026ndash;11), 1105\u0026ndash;1121. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1002/1097-0266(200010/11)21:10/11\u0026lt;1105::AID-SMJ133\u0026gt;3.0.CO;2-E\u003c/span\u003e\u003cspan address=\"10.1002/1097-0266(200010/11)21:10/11%3C1105::AID-SMJ133%3E3.0.CO;2-E\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eEriandani, R., \u0026amp; Winarno, W. A. (2023). ESG and firm performance: The role of digitalization. \u003cem\u003eJournal of Accounting and Investment\u003c/em\u003e, \u003cem\u003e24\u003c/em\u003e(3), 993\u0026ndash;1010. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.18196/jai.v24i3.20044\u003c/span\u003e\u003cspan address=\"10.18196/jai.v24i3.20044\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eFornell, C., \u0026amp; Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39\u0026ndash;50. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1177/002224378101800104\u003c/span\u003e\u003cspan address=\"10.1177/002224378101800104\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eGielens, K., \u0026amp; Steenkamp, J. B. E. M. (2019). Branding in the era of digital (dis)intermediation. \u003cem\u003eInternational Journal of Research in Marketing\u003c/em\u003e, \u003cem\u003e36\u003c/em\u003e(3), 367\u0026ndash;384. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.ijresmar.2019.01.005\u003c/span\u003e\u003cspan address=\"10.1016/j.ijresmar.2019.01.005\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eGitonga, G., Kariuki, P., \u0026amp; Kimani, E. (2025). Market Penetration Strategies and Competitive Advantage of the Telecommunication Firms in Kenya. \u003cem\u003eInternational Journal of Strategic Management\u003c/em\u003e, \u003cem\u003e4\u003c/em\u003e(1), 1\u0026ndash;26. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.47604/ijsm.3171\u003c/span\u003e\u003cspan address=\"10.47604/ijsm.3171\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eGomber, P., Kauffman, R. J., Parker, C., \u0026amp; Weber, B. W. (2018). On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. \u003cem\u003eJournal of Management Information Systems\u003c/em\u003e, \u003cem\u003e35\u003c/em\u003e(1), 220\u0026ndash;265. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1080/07421222.2018.1440766\u003c/span\u003e\u003cspan address=\"10.1080/07421222.2018.1440766\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eHair, J. F., Black, W. C., Babin, B. J., \u0026amp; Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eHe, Q., Guaita-Mart\u0026iacute;nez, J. M., \u0026amp; Botella-Carrubi, D. (2020). How brand equity affects firm productivity: The role of R\u0026amp;D and human capital. \u003cem\u003eEconomic Research-Ekonomska Istrazivanja\u003c/em\u003e, \u003cem\u003e33\u003c/em\u003e(1), 2976\u0026ndash;2992. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1080/1331677X.2019.1686045\u003c/span\u003e\u003cspan address=\"10.1080/1331677X.2019.1686045\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eHussain, I., Mu, S., Mohiuddin, M., Danish, R. Q., \u0026amp; Sair, S. A. (2020). Effects of sustainable brand equity and marketing innovation on market performance in hospitality industry: Mediating effects of sustainable competitive advantage. \u003cem\u003eSustainability (Switzerland)\u003c/em\u003e, \u003cem\u003e12\u003c/em\u003e(7). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.3390/su12072939\u003c/span\u003e\u003cspan address=\"10.3390/su12072939\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eInternational Trade Centre (ITC). (2022). \u003cem\u003eSME Competitiveness Outlook 2022: Connected Services, Competitive Businesses\u003c/em\u003e. ITC, Geneva.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eJovanovic, J. Š., Vujadinovic, R., Mitreva, E., Fragassa, C., \u0026amp; Vujovic, A. (2020). The relationship between E-commerce and firm performance: The mediating role of internet sales channels. \u003cem\u003eSustainability (Switzerland)\u003c/em\u003e, \u003cem\u003e12\u003c/em\u003e(17). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.3390/su12176993\u003c/span\u003e\u003cspan address=\"10.3390/su12176993\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKaunda Mutuku, M., Muathe, S., \u0026amp; James, R. (2019). \u003cem\u003eMediating Effect of Competitive Advantage on the Relationship Between E-commerce Capability and Performance: Empirical Evidence from Commercial Banks in Kenya\u003c/em\u003e. \u003cem\u003e11\u003c/em\u003e(17). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.7176/EJBM\u003c/span\u003e\u003cspan address=\"10.7176/EJBM\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKeller, K. L. (2013). \u003cem\u003eStrategic brand management: Building, measuring, and managing brand equity\u003c/em\u003e (4th ed.). Pearson.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKencebay, B., \u0026amp; Ertugan, A. (2025). Understanding the Mediating Effect of Brand Equity on Sustainability and Omnichannel Operation and Phygital Experience. \u003cem\u003eSustainability (Switzerland)\u003c/em\u003e, \u003cem\u003e17\u003c/em\u003e(5). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.3390/su17051878\u003c/span\u003e\u003cspan address=\"10.3390/su17051878\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKocak, A., Carsrud, A., \u0026amp; Oflazoglu, S. (2017). Market, entrepreneurial, and technology orientations: impact on innovation and firm performance. \u003cem\u003eManagement Decision\u003c/em\u003e, \u003cem\u003e55\u003c/em\u003e(2), 248\u0026ndash;270. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1108/MD-04-2015-0146\u003c/span\u003e\u003cspan address=\"10.1108/MD-04-2015-0146\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKonuk, S., Doruk, \u0026Ouml;. T., \u0026amp; \u0026Ouml;nal, Y. B. (2023). An empirical investigation of the relationship between brand value and firm value: Evidence from Turkey. \u003cem\u003eInternational Journal of Finance and Economics\u003c/em\u003e. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1002/ijfe.2915\u003c/span\u003e\u003cspan address=\"10.1002/ijfe.2915\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKotler, P., \u0026amp; Keller, K. L. (2016). \u003cem\u003eMarketing management\u003c/em\u003e (15th ed.). Pearson.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKrejcie, R. V., \u0026amp; Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607\u0026ndash;610. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1177/001316447003000308\u003c/span\u003e\u003cspan address=\"10.1177/001316447003000308\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eKump, B., Engelmann, A., Kessler, A., \u0026amp; Schweiger, C. (2019). Toward a dynamic capabilities scale: Measuring organizational sensing, seizing, and transforming capacities. \u003cem\u003eIndustrial and Corporate Change\u003c/em\u003e, \u003cem\u003e28\u003c/em\u003e(5), 1149\u0026ndash;1172. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1093/icc/dty054\u003c/span\u003e\u003cspan address=\"10.1093/icc/dty054\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eLuo, X., \u0026amp; Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. \u003cem\u003eJournal of Marketing\u003c/em\u003e, \u003cem\u003e70\u003c/em\u003e(4), 1\u0026ndash;18. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1509/jmkg.70.4.1\u003c/span\u003e\u003cspan address=\"10.1509/jmkg.70.4.1\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eMarolt, M., Zimmermann, H. D., \u0026amp; Pucihar, A. (2022). Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage. \u003cem\u003eSustainability (Switzerland)\u003c/em\u003e, \u003cem\u003e14\u003c/em\u003e(22). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.3390/su142215029\u003c/span\u003e\u003cspan address=\"10.3390/su142215029\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eMonfort, A., L\u0026oacute;pez-V\u0026aacute;zquez, B., \u0026amp; Sebasti\u0026aacute;n-Morillas, A. (2025). Building trust in sustainable brands: Revisiting perceived value, satisfaction, customer service, and brand image. \u003cem\u003eSustainable Technology and Entrepreneurship\u003c/em\u003e, \u003cem\u003e4\u003c/em\u003e(3), 100105. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.stae.2025.100105\u003c/span\u003e\u003cspan address=\"10.1016/j.stae.2025.100105\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eMutembei, C., \u0026amp; Wanjira Njuguna, J. (2019). COMPETITIVE STRATEGIES AND MARKET PENETRATION OF INSURANCE COMPANIES IN KENYA. \u003cem\u003eInternational Academic Journal of Human Resource and Business Administration |\u003c/em\u003e, \u003cem\u003e3\u003c/em\u003e(7), 552\u0026ndash;571. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttp://www.iajournals.org/articles/iajhrba_v3_i7_552_571.pdf\u003c/span\u003e\u003cspan address=\"http://www.iajournals.org/articles/iajhrba_v3_i7_552_571.pdf\" targettype=\"URL\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eOdoom, R., \u0026amp; Mensah, P. (2019). Brand orientation and brand performance in SMEs: The moderating effects of social media and innovation capabilities. \u003cem\u003eManagement Research Review\u003c/em\u003e, \u003cem\u003e42\u003c/em\u003e(1), 155\u0026ndash;171. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1108/MRR-12-2017-0441\u003c/span\u003e\u003cspan address=\"10.1108/MRR-12-2017-0441\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eOdoom, R., Narteh, B., \u0026amp; Boateng, R. (2017). Branding in small- and medium-sized enterprises (SMEs): Current issues and research avenues. In \u003cem\u003eQualitative Market Research\u003c/em\u003e (Vol. 20, Issue 1, pp. 68\u0026ndash;89). Emerald Group Publishing Ltd. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1108/QMR-12-2015-0091\u003c/span\u003e\u003cspan address=\"10.1108/QMR-12-2015-0091\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eOduro, S., \u0026amp; Mensah-Williams, E. (2023). Marketing Capabilities and Competitive Performance in the SMEs Context: A Bi-Theoretical Perspective. \u003cem\u003eJournal of Small Business Strategy\u003c/em\u003e, \u003cem\u003e33\u003c/em\u003e(2), 17\u0026ndash;35. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.53703/001c.77458\u003c/span\u003e\u003cspan address=\"10.53703/001c.77458\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eOECD. (2019). \u003cem\u003eOECD SME and Entrepreneurship Outlook 2019\u003c/em\u003e. OECD Publishing, Paris.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003ePorter, M. E. (1985). \u003cem\u003eCompetitive advantage: Creating and sustaining superior performance\u003c/em\u003e. Free Press.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eRajgopal, S., Venkatachalam, M., \u0026amp; Kotha, S. (2000). \u003cem\u003eDoes the Quality of Online Customer Experience Create a Sustainable Competitive Advantage for E-commerce Firms? Does the Quality of Online Customer Experience Create a Sustainable Competitive Advantage for E-commerce Firms? Does the Quality of Online Customer Experience Create a Sustainable Competitive Advantage for E-commerce Firms?\u003c/em\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSaeed, K. A., Grover, V., \u0026amp; Hwang, Y. (2005). The impact of e-commerce on firm performance. Journal of Strategic Information Systems, 14(4), 295\u0026ndash;330. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.jsis.2005.10.003\u003c/span\u003e\u003cspan address=\"10.1016/j.jsis.2005.10.003\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSaunders, M. (2012). Choosing research participants. In Research methods for business students (6th ed., pp. 238\u0026ndash;260). Pearson.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSaunders, M., Lewis, P., \u0026amp; Thornhill, A. (2009). Research methods for business students (5th ed.). Pearson.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSudrajad, A. I., Tricahyono, D., Al-Amin, Zuwardi, Yulianti, E. B., Irnayenti, Ahmad, \u0026amp; Rosmawati, W. (2023). The Role of Digitalization Performance on Digital Business Strategy in Indonesia MSEMs. \u003cem\u003eInternational Journal of Professional Business Review\u003c/em\u003e, \u003cem\u003e8\u003c/em\u003e(6), e02260. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.26668/businessreview/2023.v8i6.2260\u003c/span\u003e\u003cspan address=\"10.26668/businessreview/2023.v8i6.2260\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSuryaningsih, W., \u0026amp; Abadi, F. (2024). \u003cem\u003eConceptual Exploration: The Roles of Brand Equity Towards Firm Competitive Advantage in Commodity Chemical Industry\u003c/em\u003e (pp. 697\u0026ndash;711). \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.2991/978-94-6463-585-0_47\u003c/span\u003e\u003cspan address=\"10.2991/978-94-6463-585-0_47\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSusila, G. P. A. J., Purbawangsa, I. B. A., Henny Rahyuda, \u0026amp; Luh Gede Sri Artini. (2023). Competitive Advantage and Intellectual Capital as Mediators of the Influence of Corporate Governance on Firm Value. \u003cem\u003eJurnal Ilmiah Akuntansi\u003c/em\u003e, \u003cem\u003e8\u003c/em\u003e(1), 206\u0026ndash;224. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.23887/jia.v8i1.59442\u003c/span\u003e\u003cspan address=\"10.23887/jia.v8i1.59442\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSutrisno, Widodo, \u0026amp; Ausat, A. M. A. (2025). In-Depth Study of the Strategic Interaction between Electronic Commerce, Innovation, and Attainment of Competitive Advantage in the Context of SMEs. \u003cem\u003eInternational Journal of Analysis and Applications\u003c/em\u003e, \u003cem\u003e23\u003c/em\u003e. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.28924/2291-8639-23-2025-78\u003c/span\u003e\u003cspan address=\"10.28924/2291-8639-23-2025-78\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eTeece, D. J., Pisano, G., \u0026amp; Shuen, A. (1997). Dynamic capabilities and strategic management. \u003cem\u003eStrategic Management Journal\u003c/em\u003e, \u003cem\u003e18\u003c/em\u003e(7), 509\u0026ndash;533. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1002/(SICI)1097-0266(199708)18:7\u0026lt;509::AID-SMJ882\u0026gt;3.0.CO;2-Z\u003c/span\u003e\u003cspan address=\"10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eUganda Bureau of Statistics. (2022). Statistical abstract 2022. Author.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eUNCTAD. (2021). \u003cem\u003eDigital Economy Report 2021: Cross-border data flows and development\u003c/em\u003e. United Nations Conference on Trade and Development, Geneva.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eWarner, K. S. R., \u0026amp; W\u0026auml;ger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. \u003cem\u003eLong Range Planning\u003c/em\u003e, \u003cem\u003e52\u003c/em\u003e(3), 326\u0026ndash;349. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1016/j.lrp.2018.12.001\u003c/span\u003e\u003cspan address=\"10.1016/j.lrp.2018.12.001\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eWiid, J., Senooane, B., \u0026amp; Cant, M. (2024). Small and medium-sized enterprise brand development in an emerging economy: The view of the owner/manager. \u003cem\u003eDevelopment Management\u003c/em\u003e, \u003cem\u003e23\u003c/em\u003e(3), 50\u0026ndash;59. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.57111/devt/3.2024.50\u003c/span\u003e\u003cspan address=\"10.57111/devt/3.2024.50\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eWorld Bank. (2020). \u003cem\u003eDigital Economy for Africa Initiative Report\u003c/em\u003e. World Bank, Washington, DC.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eWorld Bank. (2022). \u003cem\u003eDigitalizing SMEs to Boost Competitiveness: Insights from Emerging Markets\u003c/em\u003e. World Bank, Washington, DC.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eWorld Economic Forum (WEF). (2021). \u003cem\u003eThe Future Readiness of SMEs: Mobilizing SME Sector for Sustainable Growth\u003c/em\u003e. World Economic Forum Report, Geneva.\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eZhao, X., Lynch, J. G., Jr., \u0026amp; Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197\u0026ndash;206. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1086/651257\u003c/span\u003e\u003cspan address=\"10.1086/651257\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eZoogah, B. D., Degbey, W. Y., \u0026amp; Elo, M. (2023). Industrial policy environments and the flourishing of African multinational enterprises. \u003cem\u003eJournal of International Business Policy\u003c/em\u003e, \u003cem\u003e6\u003c/em\u003e(4), 408\u0026ndash;431. \u003cspan class=\"ExternalRef\"\u003e\u003cspan class=\"RefSource\"\u003ehttps://doi.org/10.1057/s42214-023-00171-2\u003c/span\u003e\u003cspan address=\"10.1057/s42214-023-00171-2\" targettype=\"DOI\" class=\"RefTarget\"\u003e\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Digital Commerce Activation, Brand Capital, Market Penetration, Competitive Advantage, SMEs, Resource-Constrained Environments, Uganda","lastPublishedDoi":"10.21203/rs.3.rs-7094233/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-7094233/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eDigital Commerce Activation (DCA) has enabled SMEs to broaden market reach, yet market penetration (MP) alone often fails to create sustainable competitive advantage (CA). Drawing on the Resource-Based View and Dynamic Capabilities Theory, this study examines how Brand Capital (BC) mediates the relationship between DCA and CA while assessing MP\u0026rsquo;s parallel role. Survey data were collected from 405 digitally active SMEs in Kampala and Wakiso, Uganda, and analyzed through structural equation modeling. Findings indicate that DCA significantly enhances both BC and MP; however, MP neither directly influences CA nor transmits DCA\u0026rsquo;s effects into CA. In contrast, BC demonstrates a strong positive influence on CA and fully mediates the DCA\u0026ndash;CA relationship. These results confirm that BC, encompassing brand awareness, perceived quality, loyalty, and associations, functions as a VRIN resource that converts digital investments into enduring advantage. The study contributes by (1) extending RBV to position BC as the primary intangible conduit for digital strategy, (2) clarifying the micro foundations of BC formation via dynamic digital routines, and (3) offering context-specific insights for resource-constrained SMEs. Practically, managers should prioritize brand-building routines over reach-seeking, and policymakers should support digital branding initiatives to strengthen SME competitiveness.\u003c/p\u003e","manuscriptTitle":"Beyond Market Penetration: Leveraging Brand Capital for Competitive Advantage in Digitally-Driven SMEs in Resource-Constrained Settings","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-07-25 15:50:25","doi":"10.21203/rs.3.rs-7094233/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"f80c894a-430e-4201-9c62-48737af6f331","owner":[],"postedDate":"July 25th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-10-06T16:10:19+00:00","versionOfRecord":{"articleIdentity":"rs-7094233","link":"https://doi.org/10.1186/s43093-025-00663-y","journal":{"identity":"future-business-journal","isVorOnly":false,"title":"Future Business Journal"},"publishedOn":"2025-10-04 15:58:08","publishedOnDateReadable":"October 4th, 2025"},"versionCreatedAt":"2025-07-25 15:50:25","video":"","vorDoi":"10.1186/s43093-025-00663-y","vorDoiUrl":"https://doi.org/10.1186/s43093-025-00663-y","workflowStages":[]},"version":"v1","identity":"rs-7094233","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-7094233","identity":"rs-7094233","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}