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Small- and medium-sized enterprises (SMEs) increasingly implement digitalization in uncertain business environments. However, a dearth exists in the entrepreneurship literature for understanding the decision-making logic of digitalization as a management issue. Drawing on the effectuation theory, this study aims to explore the relationships between effectuation dimensions and SMEs’ digitalization.

Using quantitative data collected from 345 Chinese SMEs through questionnaires, the authors conducted the principal component analysis and hierarchical linear regression analysis.

The results highlight significant positive relationships between the four effectuation elements – experimentation, affordable loss, flexibility and precommitment – and SMEs’ digitalization. Moreover, this research considers the environmental conditions as moderators and reveals that environmental dynamism and complexity associated with high uncertainty negatively moderate the effects of effectuation on SMEs’ digitalization.

SMEs embarking on digitalization should constantly experiment to determine optimal strategies while contemplating their affordable losses. Flexibility should also be maintained to discard unproductive tactics and redirect to other viable options. Additionally, precommitments can reduce the risk that SMEs encounter in digitalization process. While the effectuation principles consolidate the likelihood of a successful digitalization, this research recommends that entrepreneurs should carefully consider their possible application in uncertain environments.

This study contributes to the entrepreneurship literature by theoretically clarifying the decision-making mechanism of digitalization and extends the application of effectuation to this context by illuminating the influences of effectuation principles on SMEs’ digital transformation. The identification of negative moderating effects of environmental uncertainty also augments an academic criticism about uncertainty creating the conditions for effectuation.

Digital technologies (DTs) are key and essential in firms and communities. Countries in low-income areas, such as Bottom of the Pyramid (BOP) contexts, struggle with digital development. To understand how firms in BOP countries access DTs, a qualitative study was conducted to provide insight into how firms in these contexts access DTs and the challenges they face while accessing these technologies.

An in-depth qualitative study was done, which included semi-structured interviews with digital enterprises. In total, 12 chief executive officers (CEOs) and owners of small and medium-sized businesses (SMEs) from Ghana and Nigeria were interviewed. NVivo 12 Pro was used for thematic analysis.

Four main findings were identified as follows: (1) how firms in BOP contexts access DTs, (2) the challenges in accessing DTs, (3) factors considered when selecting a technological provider in BOP contexts and (4) solutions and recommendations to the challenges identified. From the results, cost, low technological infrastructure, high transaction costs, regulatory issues, lack of trust, poor digital skills and lack of support were among the barriers to accessing DTs in BOP contexts.

Governments and stakeholders of firms in BOP contexts need to be intentional with their digitalization development to ensure digital inclusion.

The study developed a synopsis of the factors involved in accessing DTs in BOP contexts and is the first to conceptualize firm digital access in BOP contexts.

The peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-05-2023-0213