Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs
This study focused on the factors enabling digital transformation and the digitization of management functions in small- and medium-sized enterprises (SMEs). Empirical evidence was derived from case studies involving 22 incumbent SMEs. The findings indicate that while employee capabilities and digit...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-06-01
|
| Series: | Digital Business |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666954425000018 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849699520276856832 |
|---|---|
| author | Sami Seppänen Juhani Ukko Minna Saunila |
| author_facet | Sami Seppänen Juhani Ukko Minna Saunila |
| author_sort | Sami Seppänen |
| collection | DOAJ |
| description | This study focused on the factors enabling digital transformation and the digitization of management functions in small- and medium-sized enterprises (SMEs). Empirical evidence was derived from case studies involving 22 incumbent SMEs. The findings indicate that while employee capabilities and digital know-how are essential enablers of digital transformation, they also present challenges, including skill gaps, resistance to change, and reliance on legacy systems. To facilitate effective digital transformation, we propose that SMEs enhance technological skills within their workforce, cultivate innovation-friendly cultures, and address the disconnect between public discourse and actual digital tool adoption. Companies should adopt a cautious approach when integrating new technologies, emphasizing sustainable and human-centric transition. Furthermore, developing leadership skills that promote data-driven decision-making, collaborative problem-solving, and adaptive management is crucial. This study provides valuable insights into the dual role of employee capabilities in both facilitating and obstructing digital transformation within SMEs, offering guidance on strategies to successfully overcome the challenges that this transformation brings. |
| format | Article |
| id | doaj-art-56ce3a19dee744cc9c0dbcd6948021f3 |
| institution | DOAJ |
| issn | 2666-9544 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Digital Business |
| spelling | doaj-art-56ce3a19dee744cc9c0dbcd6948021f32025-08-20T03:18:34ZengElsevierDigital Business2666-95442025-06-015110010610.1016/j.digbus.2025.100106Understanding determinants of digital transformation and digitizing management functions in incumbent SMEsSami Seppänen0Juhani Ukko1Minna Saunila2Corresponding author.; LUT University, School of Engineering Science, Department of Industrial Engineering and Management, Mukkulankatu 19, FI-15210 Lahti, FinlandLUT University, School of Engineering Science, Department of Industrial Engineering and Management, Mukkulankatu 19, FI-15210 Lahti, FinlandLUT University, School of Engineering Science, Department of Industrial Engineering and Management, Mukkulankatu 19, FI-15210 Lahti, FinlandThis study focused on the factors enabling digital transformation and the digitization of management functions in small- and medium-sized enterprises (SMEs). Empirical evidence was derived from case studies involving 22 incumbent SMEs. The findings indicate that while employee capabilities and digital know-how are essential enablers of digital transformation, they also present challenges, including skill gaps, resistance to change, and reliance on legacy systems. To facilitate effective digital transformation, we propose that SMEs enhance technological skills within their workforce, cultivate innovation-friendly cultures, and address the disconnect between public discourse and actual digital tool adoption. Companies should adopt a cautious approach when integrating new technologies, emphasizing sustainable and human-centric transition. Furthermore, developing leadership skills that promote data-driven decision-making, collaborative problem-solving, and adaptive management is crucial. This study provides valuable insights into the dual role of employee capabilities in both facilitating and obstructing digital transformation within SMEs, offering guidance on strategies to successfully overcome the challenges that this transformation brings.http://www.sciencedirect.com/science/article/pii/S2666954425000018Digital transformationSmall and medium-sized enterprisesIncumbent SMEDigitizing management functionsEnabling factorsHindering factors |
| spellingShingle | Sami Seppänen Juhani Ukko Minna Saunila Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs Digital Business Digital transformation Small and medium-sized enterprises Incumbent SME Digitizing management functions Enabling factors Hindering factors |
| title | Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs |
| title_full | Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs |
| title_fullStr | Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs |
| title_full_unstemmed | Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs |
| title_short | Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs |
| title_sort | understanding determinants of digital transformation and digitizing management functions in incumbent smes |
| topic | Digital transformation Small and medium-sized enterprises Incumbent SME Digitizing management functions Enabling factors Hindering factors |
| url | http://www.sciencedirect.com/science/article/pii/S2666954425000018 |
| work_keys_str_mv | AT samiseppanen understandingdeterminantsofdigitaltransformationanddigitizingmanagementfunctionsinincumbentsmes AT juhaniukko understandingdeterminantsofdigitaltransformationanddigitizingmanagementfunctionsinincumbentsmes AT minnasaunila understandingdeterminantsofdigitaltransformationanddigitizingmanagementfunctionsinincumbentsmes |