Digital Transformation Journey for Small and Medium Enterprises in Growth Economies - Antecedents and Consequences

Small and Medium Enterprises (SMEs) are critical to emerging/growth economies around the world. They are essential for growth and employment generation and have been the focus of recent government policy in growth markets such as India. Digital transformation is critical for companies gearing themselves for the future and remaining competitive. Although existing research provides insights on the importance of digital transformation and its benefits for a firm’s competitiveness and growth, there is a limited understanding of the antecedents and consequences of digital transformation in SMEs situated in growth markets (g-SMEs). The study examines this specific area and through extensive interviews with owners of SMEs and proposes a decision-making model used by SMEs to evaluate and implement digital transformation. The model includes the triggers for embarking on a digital journey, the constraints, and the benefits sought and gained as outcomes. The study focuses on traditional SMEs and not born-digitals or digital-natives as traditional SMEs form the largest proportion of the current SME population.