IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-9p9381-9392.html

Resilient by Design: The Role of Digital Transformation in Future-Proofing SMEs

Author

Listed:
  • Nur Diana Hassan

    (Faculty of Business and Management, University Technology MARA, Cawangan Kedah)

  • Sarah Sabir Ahmad

    (Faculty of Business and Management, University Technology MARA, Cawangan Kedah)

  • Siti Fairuza Hassam

    (Faculty of Business and Management, University Technology MARA, Cawangan Kedah)

Abstract

Digital transformation (DT) is increasingly recognized as a critical enabler of resilience for small and medium-sized enterprises (SMEs), yet the fragmented and rapidly evolving nature of the literature obscures a coherent understanding of how DT contributes to future-proofing SMEs across contexts. To address this gap, this study conducts a systematic literature review leveraging **Scopus AI** (accessed 25 September 2025) to map the intellectual structure, thematic evolution, and emerging frontiers of research at the intersection of DT and SME resilience. Using a multi-layered Boolean search string, we analyzed peer-reviewed publications from 2015 to 2025 through Scopus AI’s integrated modules: Summary & Expanded Summary, Concept Map, Topic Experts, and Emerging Themes. Our findings reveal that DT enhances SME performance through operational efficiency, innovation, and crisis responsiveness, but its success is contingent on managerial capability, digital literacy, and contextual factors such as sector, region, and gender. The field is structured around three core clusters—marketing strategies, technology adoption, and impact on SMEs—and is evolving toward rising themes like organizational agility and sustainable digital transformation, as well as novel explorations in AI adoption and sector-specific digitization (e.g., tourism, cultural heritage). The study identifies key scholars shaping the discourse and highlights a paradigm shift from reactive digitization to “resilience by design.†Theoretically, we integrate disparate strands into a dynamic capability framework; practically, we offer actionable insights for SME leaders, policymakers, and technology providers to foster inclusive, agile, and sustainable digital transitions. This review not only clarifies the current state of knowledge but also charts a research agenda for advancing equitable and resilient digital futures for SMEs worldwide.

Suggested Citation

  • Nur Diana Hassan & Sarah Sabir Ahmad & Siti Fairuza Hassam, 2025. "Resilient by Design: The Role of Digital Transformation in Future-Proofing SMEs," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 9381-9392, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:9381-9392
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-9/9381-9392.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/resilient-by-design-the-role-of-digital-transformation-in-future-proofing-smes/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75002, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    3. Matt, C. & Hess, Thomas & Benlian, Alexander, 2015. "Digital Transformation Strategies," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75202, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Khorshed Alam & Mohammad Afshar Ali & Michael O. Erdiaw-Kwasie & Peter A. Murray & Retha Wiesner, 2022. "Digital Transformation among SMEs: Does Gender Matter?," Sustainability, MDPI, vol. 14(1), pages 1-20, January.
    5. Andreas Kallmuenzer & Alexey Mikhaylov & Mihaela Chelaru & Wojciech Czakon, 2025. "Adoption and performance outcome of digitalization in small and medium-sized enterprises," Review of Managerial Science, Springer, vol. 19(7), pages 2011-2038, July.
    6. Christian Matt & Thomas Hess & Alexander Benlian, 2015. "Digital Transformation Strategies," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(5), pages 339-343, October.
    7. Noura Metawa & Mohamed Elhoseny & Maha Mutawea, 2021. "The role of information systems for digital transformation in the private sector: a review of Egyptian SMEs," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 13(3), pages 468-479, September.
    8. Andriy Kruhlyanko & Svitlana Korobka & Rostyslav Soroka & Tetiana Kravchenko & Nadiia Vasylieva, 2025. "Adapting Management Strategies in SMEs to the Era of Digital Transformation," Management (Montevideo), AG Editor, vol. 3, pages 264-264.
    9. Ashraf Mishrif & Asharul Khan, 2023. "Technology adoption as survival strategy for small and medium enterprises during COVID-19," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-23, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:bcp:journl:v:9:y:2025:i:10:p:6502-6514 is not listed on IDEAS
    2. Reuschl, Andreas J. & Deist, Maximilian K. & Maalaoui, Adnane, 2022. "Digital transformation during a pandemic: Stretching the organizational elasticity," Journal of Business Research, Elsevier, vol. 144(C), pages 1320-1332.
    3. Fleury, Afonso & Fleury, Maria Tereza Leme & Oliveira, Luis & Leao, Pablo, 2024. "Going digital EMNEs: The role of digital maturity capability," International Business Review, Elsevier, vol. 33(4).
    4. Radicic, Dragana & Petković, Saša, 2023. "Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    5. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    6. Ponzoa, José M. & Gómez, Andrés & Mas, José M., 2023. "EU27 and USA institutions in the digital ecosystem: Proposal for a digital presence measurement index," Journal of Business Research, Elsevier, vol. 154(C).
    7. Antonio Farías & Christian A. Cancino, 2021. "Digital Transformation in the Chilean Lodging Sector: Opportunities for Sustainable Businesses," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    8. 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.
    9. Debao Dai & Shali Cao & Min Zhao, 2025. "Research on the Coupling and Coordination Between New-Quality Productivity and Digital Transformation in China’s Provinces," Sustainability, MDPI, vol. 17(9), pages 1-35, April.
    10. Sun, Bing & Zhang, Yanfeng & Zhu, Kunyan & Mao, Hongying & Liang, Tian, 2024. "Is faster really better? The impact of digital transformation speed on firm financial distress: Based on the cost-benefit perspective," Journal of Business Research, Elsevier, vol. 179(C).
    11. Del Vecchio, Pasquale & Secundo, Giustina & Garzoni, Antonello, 2023. "Phygital technologies and environments for breakthrough innovation in customers' and citizens' journey. A critical literature review and future agenda," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    12. Misheck Musaigwa & Stephen Mutula, 2022. "Impact of digital transformation on strategy in the insurance sector," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 69-76, June.
    13. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín & Hughes, Mathew, 2025. "Dynamic managerial capabilities for digital transformation in innovative SMEs: What are the effects on new product development performance?," Journal of Business Research, Elsevier, vol. 201(C).
    14. Piepponen, Amanda & Ritala, Paavo & Keränen, Joona & Maijanen, Päivi, 2022. "Digital transformation of the value proposition: A single case study in the media industry," Journal of Business Research, Elsevier, vol. 150(C), pages 311-325.
    15. Irene Bertschek & Joern Block & Alexander S. Kritikos & Caroline Stiel, 2024. "German financial state aid during Covid-19 pandemic: Higher impact among digitalized self-employed," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 76-97, January.
    16. Li, Ganglei & Shao, Yunfei, 2023. "How do top management team characteristics affect digital orientation? Exploring the internal driving forces of firm digitalization," Technology in Society, Elsevier, vol. 74(C).
    17. Cubillas-Para, Clara & Cegarra-Navarro, Juan Gabriel & Vătămănescu, Elena-Mădălina, 2024. "Gliding from regenerative unlearning toward digital transformation via collaboration with customers and organisational agility," Journal of Business Research, Elsevier, vol. 177(C).
    18. Ologeanu-Taddei, Roxana & Hönigsberg, Sarah & Weritz, Pauline & Wache, Hendrik & Mittermeier, Ferdinand & Tana, Silviana & Dang, Duong & Hautala-Kankaanpää, Tuire & Pekkola, Samuli, 2025. "The relationship of digital transformation and corporate sustainability: Synergies and tensions," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    19. Zhang, Mingyue & Peng, Donghui, 2023. "The impact of digital transformation on corporate cross-border mergers and acquisitions," Finance Research Letters, Elsevier, vol. 58(PB).
    20. Song, Dandan & Tan, Zhidong & Wang, Wei & Zhai, Rui-Xiang, 2025. "Digital transformation and corporate social responsibility engagement: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 97(C).
    21. Bennich, A. & Bergion, V. & Nilsson, D., 2025. "Digital solutions in search of a problem? Balancing short-term and long-term needs in water utilities," Utilities Policy, Elsevier, vol. 96(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:9381-9392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.