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February 10, 2025Information Technology for Development

Digital driven success: the digitalization effect on SME performance

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Authors

SHSarah HönigsbergMMMunir Mandviwalla

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Overview

Mixed-methods analysis reveals enhanced performance through digital capability adoption in small- and medium-sized enterprises, indicating that strategic transformation drives economic gains.

Key Points

  • To examine the impact of digitalization on SME performance and evaluate whether dynamic capabilities mediate this relationship.
  • Conducted a mixed-methods study combining archival quantitative data from 61,054 U.S. small- and medium-sized enterprises with a survey of 45 SMEs.
  • Evaluated dynamic capability dimensions (sensing, seizing, and transforming) across multiple digital technologies, including analytics, mobile, IoT, digital platforms, and cloud computing.
  • Adoption of technologies that build dynamic capabilities—particularly analytics, mobile, IoT, platforms, and cloud computing—consistently improves enterprise performance.
  • Seizing market opportunities and transforming them into strategic business actions serve as the primary mechanisms translating digital investments into measurable performance gains.

Cite This Study

Hönigsberg et al. (2025) studied this question.

synapsesocial.com/papers/6a87a10ba9eb41bcdfc4d64bhttps://doi.org/10.1080/02681102.2025.2453213
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