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Digital Transformation in SMEs: Enablers, Interconnections, and a Framework for Sustainable Competitive Advantage

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  • Eyup Kahveci

    (SBS Swiss Business School, University of Applied Sciences Institute Kloten, Flughafenstrasse 3, 8302 Kloten, Zurich, Switzerland)

Abstract

This study identifies critical success factors contributing to the digital transformation of SMEs. Despite their crucial role in the economy, limited research explores how they navigate digitalization challenges. This study addresses this gap by proposing the DASAT framework with four cyclically interrelated elements: Digital Awareness, Digital Strategy and Roadmap, Digital Adoption and Implementation, and Digital Transformation Continuous Improvement. Using a Total Interpretive Structural Modeling (TISM) approach, we construct a hierarchical model analyzing the interconnections among key factors. The findings align with the dynamic capability framework and digital transformation theory, emphasizing digital literacy, digital inclusion, and organizational flexibility for SMEs’ successful digital transformation. This study contributes theoretically by extending the digital transformation literature with a structured capability-building framework. It provides a practical roadmap for SMEs to strengthen their competitive advantage in an increasingly digital business environment.

Suggested Citation

  • Eyup Kahveci, 2025. "Digital Transformation in SMEs: Enablers, Interconnections, and a Framework for Sustainable Competitive Advantage," Administrative Sciences, MDPI, vol. 15(3), pages 1-16, March.
    • Handle: RePEc:gam:jadmsc:v:15:y:2025:i:3:p:107-:d:1614401
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Elena-Oana Croitoru & Andreea-Ileana Zamfir & Octavian-Cosmin Dobrin & Aurelia Stanescu, 2026. "Integration of Romanian SMEs into Digital Ecosystems: The Role of Data Analysis and Artificial Intelligence in Enhancing Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 28(72), pages 607-607, April.
    2. Arthur William Fodouop Kouam, 2025. "Navigating Disruption: The Role of Resilience and Digital Transformation in Chinese Cross-Border E-Commerce SMEs Post-COVID-19," SAGE Open, , vol. 15(4), pages 21582440251, December.
    3. Ana Alexandra Olariu & Simona Catalina Stefan & Andreea Breazu & Corina-Elena Mircioiu & Mircea Stelian Draghici, 2026. "Beyond Technology: SME Strategic Repositioning in Digital Ecosystems," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 28(72), pages 431-431, April.
    4. Yonggang Weng & Farah Akmar Anor Salim & Xiugen Wang & Qianglong Bian & Jijin Yang & Zicheng Han & Wei Deng & Qingxia Yang, 2026. "Artificial Intelligence Empowerment in Startups: A Systematic Literature Review and Research Agenda," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(6), pages 1339-1352, June.
    5. Jie Sun & Dalibor Tomas & Boris Novarlic & Zeljko Stevic, 2026. "An Efficiency Model of a Medium-Sized Enterprise and the Transformation from a Conventional to a Sustainable Ecosystem Using a Hybrid DEA-MCDM Model," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 28(72), pages 733-733, April.
    6. Laura Vasilescu & Mirela Sichigea & Valeriu Brabete & Daniel Goagara & Dorel Berceanu, 2026. "Decision-Making and Financial Performance in E-Commerce SMEs: Perceptions on Data Analytics and Artificial Intelligence," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 28(72), pages 650-650, April.
    7. repec:bcp:journl:v:9:y:2025:i:10:p:220-228 is not listed on IDEAS
    8. Keisuke Kokubun, 2026. "Eco‐Innovation as a Predictor of Ambidexterity and Performance in Small‐ and Medium‐Sized Enterprises: An Empirical Study and a New Global Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 35(1), pages 1112-1127, January.
    9. Elżbieta Sobczak, 2025. "Digital Transformation of Enterprises and Employment in Technologically Advanced and Knowledge-Intensive Sectors in the European Union Countries," Sustainability, MDPI, vol. 17(13), pages 1-40, June.
    10. Ni, Yunsong & Sun, Jiaqi, 2025. "Digital transformation and the development of servitized manufacturing in China: An asset specificity perspective," Finance Research Letters, Elsevier, vol. 85(PB).

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