IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v282y2025ics0925527325000465.html
   My bibliography  Save this article

A dual evolutionary perspective on the Co-evolution of data-driven digital transformation and value proposition in manufacturing SMEs

Author

Listed:
  • Zheng, Jianwen
  • Zhang, Justin Zuopeng
  • Kamal, Muhammad Mustafa
  • Mangla, Sachin Kumar

Abstract

Existing research emphasizes the importance of understanding the digital transformation process, yet there remains a significant gap in capturing its dynamic stages and transitions, particularly for small and medium-sized enterprises (SMEs). To address this gap, this study draws on organizational information processing theory and analyzes interview data from six traditional manufacturing SMEs. The findings lead to the development of a data-driven digital transformation process model comprising three distinct stages: (1) data-informed operational excellence, (2) data-synchronized supply chain integration, and (3) data-catalyzed ecosystem innovation. This model also maps the evolution of firm value propositions across these stages: (1) intrinsic value mapping, (2) value chain alignment, and (3) ecosystem value co-creation. Additionally, the study identifies critical preconditions for stage transitions, including supply chain mastery to progress from Stage 1 to Stage 2 and strategic ecosystem analytics integration to advance from Stage 2 to Stage 3. By offering a structured framework for understanding data-driven digital transformation, this study makes a significant contribution to the literature, particularly within the context of traditional manufacturing SMEs.

Suggested Citation

  • Zheng, Jianwen & Zhang, Justin Zuopeng & Kamal, Muhammad Mustafa & Mangla, Sachin Kumar, 2025. "A dual evolutionary perspective on the Co-evolution of data-driven digital transformation and value proposition in manufacturing SMEs," International Journal of Production Economics, Elsevier, vol. 282(C).
    • Handle: RePEc:eee:proeco:v:282:y:2025:i:c:s0925527325000465
    DOI: 10.1016/j.ijpe.2025.109561
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527325000465
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2025.109561?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.

    References listed on IDEAS

    as
    1. Adrian Payne & Pennie Frow & Andreas Eggert, 2017. "The customer value proposition: evolution, development, and application in marketing," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 467-489, July.
    2. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    3. Rameshwar Dubey & Angappa Gunasekaran & David J. Bryde & Yogesh K. Dwivedi & Thanos Papadopoulos, 2020. "Blockchain technology for enhancing swift-trust, collaboration and resilience within a humanitarian supply chain setting," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3381-3398, June.
    4. 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).
    5. Yu, Wantao & Wong, Chee Yew & Chavez, Roberto & Jacobs, Mark A., 2021. "Integrating big data analytics into supply chain finance: The roles of information processing and data-driven culture," International Journal of Production Economics, Elsevier, vol. 236(C).
    6. Plekhanov, Dmitry & Franke, Henrik & Netland, Torbjørn H., 2023. "Digital transformation: A review and research agenda," European Management Journal, Elsevier, vol. 41(6), pages 821-844.
    7. Guandalini, Ilaria, 2022. "Sustainability through digital transformation: A systematic literature review for research guidance," Journal of Business Research, Elsevier, vol. 148(C), pages 456-471.
    8. Caiado, Rodrigo Goyannes Gusmão & Scavarda, Luiz Felipe & Gavião, Luiz Octávio & Ivson, Paulo & Nascimento, Daniel Luiz de Mattos & Garza-Reyes, Jose Arturo, 2021. "A fuzzy rule-based industry 4.0 maturity model for operations and supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    9. Shalini Talwar & Puneet Kaur & Samuel Fosso Wamba & Amandeep Dhir, 2021. "Big Data in operations and supply chain management: a systematic literature review and future research agenda," International Journal of Production Research, Taylor & Francis Journals, vol. 59(11), pages 3509-3534, June.
    10. 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.
    11. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Roubaud, David & Fosso Wamba, Samuel & Giannakis, Mihalis & Foropon, Cyril, 2019. "Big data analytics and organizational culture as complements to swift trust and collaborative performance in the humanitarian supply chain," International Journal of Production Economics, Elsevier, vol. 210(C), pages 120-136.
    12. Ruchi Mishra & Rajesh Kr Singh & Nripendra P. Rana, 2024. "Digital orientation, digital eco‐innovation and circular economy in the context of sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2752-2770, May.
    13. André Hanelt & René Bohnsack & David Marz & Cláudia Antunes Marante, 2021. "A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1159-1197, July.
    14. Wong, Christina W.Y. & Lirn, Taih-Cherng & Yang, Ching-Chiao & Shang, Kuo-Chung, 2020. "Supply chain and external conditions under which supply chain resilience pays: An organizational information processing theorization," International Journal of Production Economics, Elsevier, vol. 226(C).
    15. Saarikko, Ted & Westergren, Ulrika H. & Blomquist, Tomas, 2020. "Digital transformation: Five recommendations for the digitally conscious firm," Business Horizons, Elsevier, vol. 63(6), pages 825-839.
    16. Jay R. Galbraith, 1974. "Organization Design: An Information Processing View," Interfaces, INFORMS, vol. 4(3), pages 28-36, May.
    17. Xie, Xuemei & Wu, Yonghui & Palacios-Marqués, Daniel & Ribeiro-Navarrete, Samuel, 2022. "Business networks and organizational resilience capacity in the digital age during COVID-19: A perspective utilizing organizational information processing theory," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    18. 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).
    19. Kraus, Sascha & Durst, Susanne & Ferreira, João J. & Veiga, Pedro & Kailer, Norbert & Weinmann, Alexandra, 2022. "Digital transformation in business and management research: An overview of the current status quo," International Journal of Information Management, Elsevier, vol. 63(C).
    20. Abayomi Baiyere & Hannu Salmela & Tommi Tapanainen, 2020. "Digital transformation and the new logics of business process management," European Journal of Information Systems, Taylor & Francis Journals, vol. 29(3), pages 238-259, May.
    21. Ravi Srinivasan & Morgan Swink, 2018. "An Investigation of Visibility and Flexibility as Complements to Supply Chain Analytics: An Organizational Information Processing Theory Perspective," Production and Operations Management, Production and Operations Management Society, vol. 27(10), pages 1849-1867, October.
    22. Surajit Bag & Gautam Srivastava & Anass Cherrafi & Ahad Ali & Rajesh Kumar Singh, 2024. "Data‐driven insights for circular and sustainable food supply chains: An empirical exploration of big data and predictive analytics in enhancing social sustainability performance," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1369-1396, February.
    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. 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).
    2. Mishra, Deepa Bhatt & Haider, Imran & Gunasekaran, Angappa & Sakib, Md. Nazmus & Malik, Nishtha & Rana, Nripendra P., 2023. "“Better together”: Right blend of business strategy and digital transformation strategies," International Journal of Production Economics, Elsevier, vol. 266(C).
    3. 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.
    4. Hamann-Lohmer, Jacob & Bendig, Miriam & Lasch, Rainer, 2023. "Investigating the impact of digital transformation on relationship and collaboration dynamics in supply chains and manufacturing networks – A multi-case study," International Journal of Production Economics, Elsevier, vol. 262(C).
    5. 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.
    6. 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.
    7. McCarthy, Pat & Sammon, David & Alhassan, Ibrahim, 2024. "The characteristics of digital transformation leadership: Theorizing the practitioner voice," Business Horizons, Elsevier, vol. 67(4), pages 411-423.
    8. 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).
    9. Elia, Gianluca & Solazzo, Gianluca & Lerro, Antonio & Pigni, Federico & Tucci, Christopher L., 2024. "The digital transformation canvas: A conceptual framework for leading the digital transformation process," Business Horizons, Elsevier, vol. 67(4), pages 381-398.
    10. Malewska, Kamila & Cyfert, Szymon & Chwiłkowska-Kubala, Anna & Mierzejewska, Katrzyna & Szumowski, Witold, 2024. "The missing link between digital transformation and business model innovation in energy SMEs: The role of digital organisational culture," Energy Policy, Elsevier, vol. 192(C).
    11. 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).
    12. Basile, L.J. & Carbonara, N. & Panniello, U. & Pellegrino, R., 2024. "The role of big data analytics in improving the quality of healthcare services in the Italian context: The mediating role of risk management," Technovation, Elsevier, vol. 133(C).
    13. Thuan Nguyen & Ly Thi Thao Dang, 2025. "Evaluating digital transformation preparedness among Vietnamese enterprises," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 15(3), pages 21-43.
    14. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    15. Borrero-Domínguez, Cinta & Cortijo-Gallego, Virginia & Escobar-Rodríguez, Tomás, 2024. "Digital transformation voluntary disclosure: Insights from leading European companies," International Journal of Accounting Information Systems, Elsevier, vol. 55(C).
    16. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    17. Wolfert, Sjaak & Verdouw, Cor & van Wassenaer, Lan & Dolfsma, Wilfred & Klerkx, Laurens, 2023. "Digital innovation ecosystems in agri-food: design principles and organizational framework," Agricultural Systems, Elsevier, vol. 204(C).
    18. Kratochvil, Renate, 2025. "Stepping in and stepping aside: Employees navigating digital transformation paradoxes," Journal of Business Research, Elsevier, vol. 191(C).
    19. He, Guojun Sawyer & Tran, Thi Thanh Huong & Leonidou, Leonidas C., 2024. "It's here to stay: Lessons, reflections, and visions on digital transformation amid public crisis," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    20. 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.

    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:proeco:v:282:y:2025:i:c:s0925527325000465. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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.