Challenges of Digital Transformation in SMEs
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Abstract
Digital transformation is a disruptive innovation process in SMEs and threatens the very existence of them. The traditional business model of SMEs is being challenged by digitalization pressure imposed by competitors on the one side and by changing the shopping habits of their customers on the other. And most digital transformation initiatives fail because organizations haven't changed their mindsets and processes, or haven't built cultures that encourage change. It is for this reason that, despite all the digitally enabled opportunities to regain competitive power, SMEs are still hesitant to embrace emerging technologies as digital tools and applications.
The objective of this study is to examine the drivers and barriers of the digital transformation of SMEs to identify the possible triggering challenges that can promote their digital transformation. Therefore, we carry out a systematic review of the literature on the research that exists so far in the academic literature, in order to identify the enablers and inhibitors that SMEs find to reach digital transformation, and the challenges they encounter in this process.
The results indicate high uncertainty among SMEs about what to do and where to begin the path to digital transformation. The positive attitude of SMEs towards digitization is the only driver. Furthermore, SMEs face multiple barriers, including a lack of available resources, low perception of external pressures, low intentions to use, and low current use of digitization. The study reveals that the adoption of a digital strategy that facilitates the incorporation of emerging technologies and the development of digital leadership capabilities could work as a suitable trigger to promote digital transformation in SMEs and are promising starting points.
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