Drivers of Digital Transformation in SMEs

This study aims to identify and analyze factors determining
the adoption of digital technologies in SMEs. Drawing
on the technology–organization–environment framework, the
study highlights enabling factors from three different contexts and
hypothesizes their relationship with digital technology adoption.
The data used were collected from 15 346 European Union and
non-European Union SMEs to test an ordered logit regression
model that highlights the factors associated with an increased level
of digital technologies adoption in SMEs. The empirical results
show that the technology context (IT infrastructure and digital
tools) along with the existing level of innovation are the main
drivers that act as stepping stones in digital technology adoption.
Corporate regulation, available skills, and financial resources (as
organizational variables) also play a significant role in the adoption
decision. Unexpectedly, the influence of the environmental context
is marginal. The implications of this study are emphasized for
theory and practice, laying a foundation for further empirical
studies in this field.
Managerial relevance statement: This article reviews the empirical
research on digital technologies adoption and examines the
drivers of such adoption in SMEs. The factors identified provide
guidance for practitioners adopting digital technologies in
SMEs, by suggesting they assess the readiness of their firms before
investing in digital technology. This research helps advance
the conversation on digitalization drivers especially by bringing
the discussion into the organization boundaries, as our findings
highlight the predominance of organizational drivers over the technological
and environmental ones. SMEshave to overcome the challenges
associated with constructing an IT infrastructure capable
of implementing new technologies. Indeed, while striving to adopt
new digital technologies (e.g., AI, big data, IoT), many SMEs are
still unprepared. Therefore, rather than adopting mimetic behaviors
based on external pressure, SMEs that aim for digitalization
should first assess their existing technologies, and further develop a meticulous technological roadmap that includes skills upgrades
and investments in upskilling employees’ capabilities. Therefore,
developing a fully integrated strategic approach is crucial before
the adoption of digital technologies