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

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that pose barriers to digitalization, such as the risk-averse culture prevalent in many SMEs, and their reliance on outdated legacy systems.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.

The Digital Evolution Strategies for Overcoming Cybersecurity and Adoption Challenges in French SMEs

“…Examining scholarly works on this topic enables a complete understanding of the elements contributing to these challenges and formulating ways to solve them. Addressing French SMEs' challenges during their digital transformation necessitates integrating expertise from several disciplines, such as technology, business, cybersecurity, and organizational change [7]. This strategy is critical for identifying and synthesizing best practices and insights to assist these firms in navigating the complexity of digital and cybersecurity integration.…”

“…That could involve creating and implementing training programs for SME employees, designing comprehensive digital transformation strategies that include cybersecurity from the outset, and forming public-private partnerships to support SMEs. This collaborative approach will facilitate the translation of research findings into actionable solutions [7]. Testing such collaborative work in realworld contexts will provide vital feedback and allow for further development.…”

“…The uneven allocation of resources aggravates the existing digital divide, leaving resourceconstrained SMEs at a significant disadvantage. These SMEs struggle to keep up with their bettersupported peers, widening the gap between technologically proficient and less digitally prepared businesses [7]. This situation highlights the significance of creating legislative frameworks that protect and empower all SMEs, resulting in a more inclusive digital environment.…”

“…Comprehending and accepting these cultural elements is essential for creating a workplace that effectively integrates digital tools while prioritizing security. Therefore, small and medium-sized firms should prioritize the development of a supportive and forward-thinking corporate culture to leverage digital technology and manage associated risks with efficiency effectively [7]. The emphasis is on cultivating a setting that promotes continuous innovation and safely incorporates digital technologies.…”

“…Additionally, robust cybersecurity measures provide strong protection for digital systems against potential threats, ensuring that productivity enhancements achieved through digitalization are not only maintained but also secure over the long term. Therefore, it is imperative for SMEs adopting digitalization to continuously update their cybersecurity strategies to handle evolving threats and maintain a competitive edge in an increasingly unsafe digital world [7]. This integrative literature review attempts to tackle a crucial research question: What recommendations may be provided to assist French SMEs in efficiently leveraging digital technology while upholding robust cybersecurity measures to enhance their competitiveness and operational security?…”