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Navigating Digital Challenges for SMEs: A Two-Tier Approach to Risks Mitigation and Sustainability

Author

Listed:
  • Arnesh Telukdarie

    (Johannesburg Business School, University of Johannesburg, Auckland Park, Johannesburg 2092, South Africa)

  • Thabile Dube

    (Johannesburg Business School, University of Johannesburg, Auckland Park, Johannesburg 2092, South Africa)

  • Megashnee Munsamy

    (Johannesburg Business School, University of Johannesburg, Auckland Park, Johannesburg 2092, South Africa)

  • Khuliso Murulane

    (Department of Physics, Faculty of Science, University of Johannesburg, Auckland Park, Johannesburg 2092, South Africa)

  • Regionald Mongwe

    (Johannesburg Business School, University of Johannesburg, Auckland Park, Johannesburg 2092, South Africa)

Abstract

The global significance of SMEs has traditionally been recognized as a key driver of economic growth and sustainability. The emergence of digital technologies and Information and Communication Technology for Development (ICT4D) holds significant potential to further enhance this impact. However, SMEs in developing countries have faced challenges in adopting sustainable, resource-intensive digital systems. Factors such as limited skills, financial constraints, and the alignment of suitable solutions hinder this adoption. To address these challenges and promote sustainable digital transformation, this study proposes a two-tier approach. The first prong employs Natural Language Processing (NLP) techniques, including Word2Vec, for global analysis and digital systems identification. The second prong involves a country-specific analysis of SMEs’ digital requirements. This two-tier analysis aims to uncover the actual digital needs of SMEs while shedding light on high-intensity global SME activities that, if integrated through ICT4D, could effectively address the risks and challenges SMEs face in adopting, implementing, and maintaining digital systems. In addition, the study develops systems required by SMEs to optimize their business processes and production, thereby promoting their growth and sustainability in the digital era. The results of this study demonstrate the effectiveness of these proposed methods in addressing digital challenges for SMEs and fostering sustainable development.

Suggested Citation

  • Arnesh Telukdarie & Thabile Dube & Megashnee Munsamy & Khuliso Murulane & Regionald Mongwe, 2024. "Navigating Digital Challenges for SMEs: A Two-Tier Approach to Risks Mitigation and Sustainability," Sustainability, MDPI, vol. 16(14), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5857-:d:1431916
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    References listed on IDEAS

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    1. Donald O. E. Amadasun & Ashley T. Mutezo, 2022. "Influence of access to finance on the competitive growth of SMEs in Lesotho," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-20, December.
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    3. Demetris Vrontis & Ranjan Chaudhuri & Sheshadri Chatterjee, 2022. "Adoption of Digital Technologies by SMEs for Sustainability and Value Creation: Moderating Role of Entrepreneurial Orientation," Sustainability, MDPI, vol. 14(13), pages 1-19, June.
    4. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    5. Mohammed Ali Alqassabi, 2020. "Insights on Sustainability of Small and Medium Enterprises in Oman: A Conceptual Framework," International Journal of Economics and Financial Issues, Econjournals, vol. 10(1), pages 209-218.
    6. Cozzolino, Alessio & Corbo, Leonardo & Aversa, Paolo, 2021. "Digital platform-based ecosystems: The evolution of collaboration and competition between incumbent producers and entrant platforms," Journal of Business Research, Elsevier, vol. 126(C), pages 385-400.
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    Cited by:

    1. Pham Quang Huy & Vu Kien Phuc, 2024. "Contribution to accelerated internationalization with digital forensic accounting and metaverse circular business model innovation for Vietnam-based SMEs," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-28, December.
    2. Nothando Tshuma & Emmanuel Sibanda & Tsepeso Setoboli, 2024. "Exploring the Predominant Business Risks Faced by Manufacturing Smes in Bulawayo," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(11), pages 616-636, November.

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