Relating digital platform synergy and SME agility: The roles of organizational inertia and modularity

Organizational agility is vital for the survival of small and medium-sized enterprises (SMEs) in turbulent environments. While several studies have examined the role of digital platforms in shaping organizational agility, the impact of digital platform synergy on organizational agility in the context of SMEs remains underresearched. To address this gap, we examine the impact of SMEs’ digital platform synergy on their organizational agility and identify the mechanisms underlying this relationship. Using a sample of 421 Chinese manufacturing SMEs, the analysis demonstrates that digital platform synergy inhibits organizational agility. Furthermore, organizational inertia mediates this relationship, while organizational modularity negatively moderates the positive effect of digital platform synergy on organizational inertia, thereby reducing the mediating effect of organizational inertia. The study advances the growing literature on the factors influencing the agility of SMEs in digital contexts by illuminating the nuanced roles of digital platform synergy, organizational inertia, and modularity.