IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v164y2023ics0148296323003314.html

Digital readiness of small and medium enterprises in emerging markets: The construct, propositions, measurement, and implications

Author

Listed:
  • Pingali, Srinivas R.
  • Singha, Sumanta
  • Arunachalam, S.
  • Pedada, Kiran

Abstract

Digital readiness is becoming increasingly critical for resource-constrained small and medium enterprises (SMEs) to remain competitive. However, despite its necessity, there is a limited understanding of the digital readiness of SMEs, especially in emerging markets. Employing a multi-study, multi-method approach involving qualitative interviews and quantitative surveys with SME owners in emerging markets (E-SMEs), this work conceptualizes the digital readiness of E-SMEs and identifies its key drivers. In Study 1, using a qualitative grounded-theory approach, we identify five themes and offer 11 propositions elaborating on the key factors that affect E-SMEs’ digital readiness. In Studies 2 and 3, using surveys, we develop, test, and validate a multi-item measurement scale of digital readiness characterized by three dimensions: technological sensemaking, agility, and implementation. We draw important insights from our studies and discuss their managerial and policy implications for E-SMEs.

Suggested Citation

  • Pingali, Srinivas R. & Singha, Sumanta & Arunachalam, S. & Pedada, Kiran, 2023. "Digital readiness of small and medium enterprises in emerging markets: The construct, propositions, measurement, and implications," Journal of Business Research, Elsevier, vol. 164(C).
    • Handle: RePEc:eee:jbrese:v:164:y:2023:i:c:s0148296323003314
    DOI: 10.1016/j.jbusres.2023.113973
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323003314
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.113973?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xie, Yu & Wu, Desheng, 2024. "How does competition policy affect enterprise digitization? Dual perspectives of digital commitment and digital innovation," Journal of Business Research, Elsevier, vol. 178(C).
    2. SANTOSO Budi & Hasan HAFIDZI Achmad & Gunawan WIBOWO Yohanes & IZZUDDIN Ahmad & Setiawan SUHARSONO Riyanto, 2025. "Innovative Marketing Strategies for Enhancing Competency and Access to Capital In SME’s," Foundations of Management, Sciendo, vol. 17(1), pages 173-186.
    3. Chwiłkowska-Kubala, Anna & Cyfert, Szymon & Malewska, Kamila & Mierzejewska, Katarzyna & Szumowski, Witold, 2023. "The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation," Technology in Society, Elsevier, vol. 74(C).
    4. Shanwen Gu & Adil Javed, 2025. "Artificial Intelligence Adoption and Role of Energy Structure, Infrastructure, Financial Inclusions, and Carbon Emissions: Quantile Analysis of E-7 Nations," Sustainability, MDPI, vol. 17(13), pages 1-25, June.
    5. Zhang, Xi-xi & Hao, Xing-lin, 2025. "Linkage mechanism of antecedents for employees' continuous adoption of artificial intelligence virtual assistants," Technological Forecasting and Social Change, Elsevier, vol. 220(C).
    6. Dinh Van Hoang & Nguyen Thi Hien & Han Van Thang & Phan Nguyen Truc Phuong & Trang Thi-Thuy Duong, 2025. "Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs," SAGE Open, , vol. 15(2), pages 21582440251, April.
    7. Maseda, Amaia & Iturralde, Txomin & Arzubiaga, Unai, 2025. "Unpacking the role of entrepreneurial orientation in the digital transformation of family SMEs: The importance of leadership structure and generational involvement," Technological Forecasting and Social Change, Elsevier, vol. 219(C).
    8. Pooja Kewalramani & Jaspreet Kaur & Sumita Srivastava, 2026. "Digital Technology at the Core: Facilitating Adoption for Enhanced SME Performance and Sustainability," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 35(1), pages 106-153, February.
    9. Wang, YiZheng & Zhang, ZhenTian, 2025. "Digital development and rural financial inclusion: Evidence from China," Research in International Business and Finance, Elsevier, vol. 73(PA).
    10. Muhammad Bilal & Zhao Xicang & Wu Jiying & Jan Muhammad Sohu & Sadaf Akhtar & Muhammad Iatzaz Ul Hassan, 2025. "Digital Transformation and SME Innovation: A Comprehensive Analysis of Mediating and Moderating Effects," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1153-1182, March.
    11. Rame, Rame & Purwanto, Purwanto & Sudarno, Sudarno, 2024. "Industry 5.0 and sustainability: An overview of emerging trends and challenges for a green future," Innovation and Green Development, Elsevier, vol. 3(4).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:eee:jbrese:v:164:y:2023:i:c:s0148296323003314. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.