THE STRATEGIC ROLE OF DIGITAL TRANSFORMATION IN DRIVING START - UP SUCCESS: EVIDENCE FROM THE SULTANATE OF OMAN

Abstract

This study aims to identify the major drivers and challenges influencing the success of digital transformation among start-ups in Oman, to examine the impact of digital transformation on their operational performance, innovation and competitiveness, and to propose practical strategies for enhancing the successful implementation and sustainability of digital transformation. The study adopted a quantitative, cross-sectional research design, with data collected through a structured questionnaire from 150 respondents associated with start-ups in Oman. Descriptive statistics, reliability analysis and simple linear regression were used to examine digital transformation and its relationship with start-up performance, innovation and competitiveness. The findings indicate widespread digital technology adoption among the surveyed start-ups. Digital strategy, employee readiness, investment and government support were important drivers, while digital skills and financial constraints were the major challenges. Regression results showed a strong positive relationship between digital transformation and start-up performance, innovation and competitiveness (β = .915, p < .001), with the model explaining 83.7% of the variance. The study provides empirical evidence on how digital transformation relates to start-up success in Oman and highlights the importance of combining technology adoption with digital skills, strategic planning, financial resources and organisational support. Strengthening digital capabilities among start-ups can contribute to employment, innovation and broader participation in the digital economy, and improving access to digital skills, training, infrastructure and financial support may help smaller ventures participate more effectively in Oman’s developing entrepreneurial and technology-oriented business environment. The study contributes empirical evidence on digital transformation and start-up success in the Omani context and identifies the capability and resource constraints that need attention for digital transformation to deliver sustained value.