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Role of Government to Enhance Digital Transformation in Small Service Business

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  • Chun-Liang Chen

    (Graduate School of Creative Industry Design, National Taiwan University of Arts, New Taipei City 22058, Taiwan)

  • Yao-Chin Lin

    (Department of Information Management, Yuan Ze University, Taoyuan City 32003, Taiwan)

  • Wei-Hung Chen

    (Department of Information Management, Yuan Ze University, Taoyuan City 32003, Taiwan)

  • Cheng-Fu Chao

    (National Association of Small and Medium Enterprises, Taipei City 10646, Taiwan)

  • Henry Pandia

    (Department of Information Management, Yuan Ze University, Taoyuan City 32003, Taiwan)

Abstract

In the digital economy era, small service business struggle to compete in a rapidly changing and dynamic market. Therefore, through digital transformation (DT), small service business seek to increase their competitive advantage, improve business performance, and achieve business growth. Having limited resources and capabilities, small service business must deal with several barriers and challenges. This study aims to discover the barriers, and the roles of government, for digital transformation in small service business. This study applied a qualitative approach involving semi-structured in-depth interviews with top management of small service business. Then, we employed the content analysis method to examine interview data and construct a model. This research reveals four main barriers to digital transformation in small service business: lack of funding, lack of digital capability, lack of human resources, and technical barriers. We found there are four government roles for supporting digital transformation in small service business: build a digital platform for small service business, promote mobile/digital payment, provide digital training, and build a digital collaboration ecosystem. Additionally, based on this study’s findings, a model for barriers and government support of digital transformation in small service business is presented. This study contributes to the conceptual framework and management implications in the digital transformation field. The study’s findings provide insights to practitioners and suggest that the government could alter the current policies and programs to support digital transformation in small service business.

Suggested Citation

  • Chun-Liang Chen & Yao-Chin Lin & Wei-Hung Chen & Cheng-Fu Chao & Henry Pandia, 2021. "Role of Government to Enhance Digital Transformation in Small Service Business," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:3:p:1028-:d:483560
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    5. Xiying Zhang & Yihuan Wang, 2022. "Research on the Influence of Digital Technology and Policy Restrictions on the Development of Digital Service Trade," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    6. Xin Zhang & Yaoyu Xu & Liang Ma, 2022. "Research on Successful Factors and Influencing Mechanism of the Digital Transformation in SMEs," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    7. Peipei Qi & Can Xu & Qi Wang, 2023. "What Determines the Digital Transformation of SRDI Enterprises?—A Study of the TOE Framework-Based Configuration," Sustainability, MDPI, vol. 15(18), pages 1-16, September.
    8. Khando Khando & M. Sirajul Islam & Shang Gao, 2022. "The Emerging Technologies of Digital Payments and Associated Challenges: A Systematic Literature Review," Future Internet, MDPI, vol. 15(1), pages 1-21, December.
    9. Yu Gao & Xiuyun Yang & Shuangyan Li, 2022. "Government Supports, Digital Capability, and Organizational Resilience Capacity during COVID-19: The Moderation Role of Organizational Unlearning," Sustainability, MDPI, vol. 14(15), pages 1-19, August.
    10. Jianping Huang & Chinlon Lin & Yang Gao & Chun-liang Chen, 2021. "A Study of Lacquerware Industry’s Upgrading and Sustainability Strategies from the Perspective of GVCs—Using China Fuzhou Lacquerware Industry as Example," Sustainability, MDPI, vol. 13(9), pages 1-23, April.
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    12. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
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    16. Barbara Iannone & Giulia Caruso, 2023. "“Sustainab-lization”: Sustainability and Digitalization as a Strategy for Resilience in the Coffee Sector," Sustainability, MDPI, vol. 15(6), pages 1-32, March.

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