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Adoption and performance outcome of digitalization in small and medium-sized enterprises

Author

Listed:
  • Andreas Kallmuenzer

    (Excelia Business School)

  • Alexey Mikhaylov

    (Excelia Business School)

  • Mihaela Chelaru

    (University of Modena and Reggio Emilia)

  • Wojciech Czakon

    (Jagiellonian University)

Abstract

Digital transformation has a profound impact on businesses and various implications for firms. While some effectively navigate this digital shift, harnessing the benefits of modern technologies, many small and medium-sized enterprises (SMEs) struggle to seize the opportunities presented by this transformative process, despite its unprecedented potential. Decision-makers within SMEs often grapple with uncertainty surrounding the digitalization process, leading to hesitancy in embracing available technologies. This qualitative study endeavors to address this challenge by exploring the enablers and barriers of digitalization adoption within SMEs, while also assessing its impact on performance. In-depth interviews were conducted with SME managers, with the results revealing that several factors simplify the process of digitization in SMEs, including the appropriate technologies, and a workforce equipped with the right digital skills to use them. Conversely, we identified elements that pose barriers to digitalization, such as the risk-averse culture prevalent in many SMEs, and their reliance on outdated legacy systems. In summary, our research underscores the importance of a strategic interplay of these elements for effective digitization within SMEs. This study sheds light on the intricacies of the digitalization process, while also providing valuable insights into the factors influencing its adoption and the resulting performance outcomes in the SME context.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:rvmgts:v:19:y:2025:i:7:d:10.1007_s11846-024-00744-2
    DOI: 10.1007/s11846-024-00744-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Digitalization; SMEs; Digital orientation; Digital transformation; Business performance; Digital skills; Digitalization competencies;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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