Business Resilience for Small and Medium Enterprises and Startups by Digital Transformation and the Role of Marketing Capabilities—A Systematic Review

Abstract

This study investigates the intersection of digital transformation, business resilience, and marketing capabilities, focusing on small businesses and startups. The digital revolution has significantly transformed business operations, supply chain management, and overall organizational performance. Conducted following PRISMA guidelines, this systematic literature review used the Scopus database, refining an initial 247 documents to 51 relevant studies. Key trends include the vital role of digital transformation in enhancing resilience, the use of emerging technologies for sustainable supply chains, and the importance of digital skills and knowledge management. Research highlights the implications of digital marketing and e-commerce adoption for SMEs, revealing the need for firms to develop dynamic capabilities to thrive in turbulent environments. However, gaps remain, such as understanding the long-term impacts of digital transformation, the interactions between digital maturity, innovation, and sustainability, and the necessity for comparative studies across industries and regions. Additionally, investigating how marketing capabilities contribute to resilience is essential, enabling small businesses and startups to withstand and recover from disruptions. Addressing these trends and gaps will enhance our understanding of digital transformation’s multifaceted implications for SMEs and startups, helping them leverage marketing capabilities to navigate challenges and seize opportunities in the digital era.

1. Introduction

The digital revolution has fundamentally transformed the business landscape, disrupted traditional industry norms, and introduced new challenges and opportunities for organizations of all sizes [1]. The rapid pace of technological advancement, coupled with evolving customer expectations and competitive pressures, has compelled businesses to reexamine their strategies, operations, and value propositions [2].

At the core of this digital transformation is the integration of emerging technologies, such as big data analytics, cloud computing, artificial intelligence (AI), the Internet of Things (IoT), and blockchain, into the very fabric of business operations. These digital technologies have the potential to enhance operational efficiency, improve decision-making, foster innovation, and unlock new revenue streams [3,4].

However, the successful implementation of digital transformation goes beyond the mere adoption of technology. It requires a holistic, organization-wide approach that aligns digital initiatives with the firm’s strategic objectives, organizational capabilities, and cultural norms [5,6]. This transformation process often involves the redesign of business models, the reengineering of core processes, and the development of new skills and competencies within the workforce.

The implications of digital transformation are far-reaching, as businesses seek to navigate the complex interplay between technological advancements, evolving customer preferences, and shifting competitive landscapes [2]. Firms that can effectively leverage digital capabilities are often better equipped to anticipate and respond to market changes, enhance their operational resilience, and maintain a competitive edge.

While the digital transformation imperative applies to businesses of all sizes, small and medium enterprises (SMEs) and startups face unique challenges and opportunities in this rapidly evolving landscape. SMEs, typically defined as companies with fewer than 500 employees and limited revenue, often operate with a flat organizational structure and informal decision-making processes. Their focus is often on niche markets, and they often struggle with resource constraints, including limited access to capital, expertise, and technology. Startups, on the other hand, are characterized by their novelty, growth ambition, and agility. They focus on developing and launching innovative products or services, aiming to achieve rapid growth and a significant market share. Their success hinges on their ability to adapt quickly to changing market conditions and navigate significant risks and uncertainties associated with their unproven business models.

Despite their differences, both SMEs and startups share certain challenges in the digital age. Their limited resources can make it difficult to acquire and retain talented personnel, invest in cutting-edge technology, and scale their operations effectively. Moreover, they often face stiff competition from larger, established companies with greater resources and market power. Adding to these challenges, the rapid pace of technological advancements can leave SMEs and startups struggling to keep up with the latest trends and adapt their businesses accordingly.

However, digital transformation also presents significant opportunities for SMEs and startups. Emerging technologies can level the playing field, lowering barriers to entry and enabling smaller companies to compete with larger players. Digital tools and platforms provide SMEs and startups with increased agility, allowing them to respond quickly to market changes and customer demands. Furthermore, e-commerce and online platforms open up new markets and customer segments, enabling businesses to reach a global audience. By embracing digital transformation and leveraging these opportunities, SMEs and startups can overcome their limitations and thrive in the ever-evolving digital economy [7].

However, small businesses and startups also possess inherent strengths, such as agility, innovation, and customer-centricity, which can be leveraged to their advantage in the digital age [8]. By enhancing their resilience and adaptability, these organizations can not only survive but thrive in the face of digital disruptions, and potentially even disrupt established industry players.

The concept of business resilience has gained significant attention in the context of digital transformation. Resilience refers to an organization’s capacity to anticipate, adapt, and recover from unexpected events, disruptions, or environmental changes [9]. In the digital age, where market conditions can shift rapidly and technological advancements can quickly render traditional business models obsolete, the ability to build resilience has become a critical success factor.

For small businesses and startups, enhancing resilience is particularly crucial, as they often lack the financial resources, operational scale, and market power of larger corporations. By cultivating resilience, these organizations can better withstand unexpected shocks, quickly pivot their strategies, and leverage emerging opportunities to drive growth and innovation [10,11].

The development of resilience in the face of digital transformation involves the strategic deployment of a range of organizational capabilities, such as ambidexterity, agility, and adaptability. These capabilities enable small businesses and startups to balance the exploitation of their existing strengths with the exploration of new opportunities, ensuring their long-term viability and competitiveness [12].

Moreover, the integration of digital technologies can play a key role in enhancing the resilience of small businesses and startups [13]. By leveraging tools and platforms for digital marketing, e-commerce, data analytics, and supply chain optimization, these organizations can improve their operational efficiency, better understand and respond to customer needs, and diversify their revenue streams [14].

Information technology resources like IT advancement and alignment with business strategy are crucial for developing digital marketing capabilities, which, in turn, boost business performance [15]. However, two factors moderate these effects: a firm’s digital orientation and the technological turbulence in its market environment [15].

Companies deeply embedding digital technologies across operations, products, services, and strategies can better leverage IT advancement and alignment to build digital marketing prowess. The positive impact of both IT resources on digital marketing capabilities is amplified for firms with a strong digital orientation compared to those lacking it. Similarly, in markets with rapid technological changes, digital marketing capabilities yield greater performance benefits. Firms in such turbulent environments gain more from their digital marketing strengths [15].

In exploring the role of digital technologies in fostering antifragility within small and medium-sized enterprises (SMEs), Corvello et al. conducted a study analyzing the responses of six SMEs located in Calabria, southern Italy, to the COVID-19 pandemic crisis [16]. The research highlights how these enterprises transformed the crisis into an opportunity by developing new products, investing in marketing and communication, and initiating collaborations. Notably, the study identifies factors such as slack financial resources, strategic agility, and relations with research institutions as catalysts for antifragile behavior, with digital technologies playing a pivotal role in this process. This investigation underscores the positive impact of digital technologies in enhancing the antifragility of SMEs, offering valuable insights for both researchers and practitioners seeking to understand and leverage the intersection of digital transformation and business resilience in the face of crises.

In a complementary vein, Toufaily and Zalan delve into crisis management strategies employed by service organizations amidst humanitarian crises, particularly focusing on the lessons learned from the COVID-19 pandemic [17]. Employing a qualitative research design and drawing from Transformative Service Research (TSR) and the dynamic capabilities perspective, this study unveils an empirical framework emphasizing the co-creation of service ecosystem well-being and resilience. The findings illuminate various organizational responses to the crisis, including service redesign, digital servitization, and business model reconceptualization. Dynamic capabilities, such as strategic flexibility, market orientation, and technological prowess, emerge as critical enablers for navigating uncertainty and driving crisis management efforts. This research offers practical implications for service marketing practitioners, advocating for the integration of TSR principles and dynamic capabilities to foster well-being and resilience within service ecosystems, thus equipping organizations with the requisite strategies and capabilities to effectively manage crises.

Complementing this review, recent research on urban resilience enhancement processes offers valuable insights into mitigating risks posed by natural disasters. For instance, the Risk-Informed Asset-Centric (RIACT) process outlined by Rezvani et al. introduces a novel framework for fortifying urban infrastructures against seismic activities in Portuguese municipalities [18]. By integrating geographic information system (GIS) mapping and comprehensive risk assessments, this approach not only identifies vulnerabilities but also facilitates targeted interventions to enhance resilience. Similarly, the Urban Resilience Index for Critical Infrastructure proposed by the same authors offers a scenario-based approach to disaster risk reduction, focusing specifically on road networks [19]. Through a meticulous four-stage methodology and advanced flood Geospatial-AI models, this study underscores the importance of proactive resilience planning in mitigating the impact of floods on critical transportation arteries. By synthesizing insights from these diverse streams of research, policymakers, urban planners, and business leaders can develop holistic strategies to foster resilience and sustainability in both urban and commercial landscapes.

Aims

This systematic literature review aims to provide a comprehensive understanding of the current state of research on the digital transformation of businesses, with a particular focus on the influence of marketing capabilities and business resilience for small businesses and startups. The review seeks to achieve the following objectives:

• Identify and synthesize the key research trends and themes in the existing literature, highlighting the multifaceted impact of digital transformation on business operations, strategy, and performance.
• Identify the key research gaps and future directions in the literature, providing insights that can inform both academic research and practical solutions for small businesses and startups in the digital transformation era.
• Explore the critical role of organizational capabilities, such as ambidexterity, resilience, and agility, in enabling small businesses and startups to navigate the challenges and leverage the opportunities presented by digital transformation.
• Examine the strategic deployment of digital technologies, including digital marketing, e-commerce, and emerging technologies, as enablers of enhanced business resilience for small businesses and startups.
• Extract a roadmap of digitalization of SMEs and startups for being more resilient

By addressing these objectives, this systematic literature review aims to contribute to a deeper understanding of the complex interplay between digital transformation, organizational resilience, and the unique challenges and opportunities faced by small businesses and startups. The findings and insights presented can inform the development of effective strategies, support mechanisms, and policy interventions to help these organizations thrive in the digital age.

2. Methods

The systematic review in this work serves to provide a comprehensive overview of the relevant standards, regulations, and practical solutions for business resilience in the context of digital transformation, as shown in Figure 1. The first step was a broad keyword search to identify the key topics and themes, which yielded 247 initial results. This was then narrowed down to 51 more targeted results through further refinement of the search criteria.

The review of standards and regulations covers the EU’s Digitalization and Standards, ISOs, and other relevant frameworks that provide guidance and requirements for SMEs and startups undergoing digital transformation. This lays the foundational understanding of the regulatory landscape that businesses must navigate.

The review of practical solutions examines real-world case studies and best practices for enhancing business resilience in the digital age, including an analysis of 10 key research trends and 8 specific research gaps. Synthesizing these insights, the systematic literature review provides a holistic perspective on the challenges, enablers, and emerging approaches for SMEs and startups to build digital and marketing capabilities and organizational resilience, laying the groundwork for the development of a roadmap in subsequent sections. Overall, this systematic literature review serves as a critical foundation, distilling key knowledge from prior research to inform the roadmap’s phased approach to digitalization for SMEs and startups, ensuring that it is tailored to their real-world needs and constraints.

2.1. Search Strategy and Inclusion/Exclusion Criteria

This systematic literature review was conducted following the Preferred Reporting Criteria for Systematic Reviews and Meta-Analyses (PRISMA) guidelines to ensure a comprehensive and transparent search process. The search was performed using the Scopus database.

The initial search string used was as follows: TITLE-ABS-KEY (business AND digital* AND market* AND resili*). This broad search query returned 247 potentially relevant documents. To further refine the search and enhance the relevance of the included studies, a more targeted search string was developed:

TITLE-ABS-KEY (Business Digital* Market* Resili*) AND (LIMIT-TO (PUBSTAGE,“final”)) AND (LIMIT-TO (EXACTKEYWORD,“Digitalization”) OR LIMIT-TO (EXACTKEYWORD,“Resilience”) OR LIMIT-TO (EXACTKEYWORD,“Digital Transformation”) OR LIMIT-TO (EXACTKEYWORD,“Digitization”) OR LIMIT-TO (EXACTKEYWORD,“Digital Marketing”) OR LIMIT-TO (EXACTKEYWORD,“Decision Making”) OR LIMIT-TO (EXACTKEYWORD,“Marketing”) OR LIMIT-TO (EXACTKEYWORD,“Business”) OR LIMIT-TO (EXACTKEYWORD,“Business Models”) OR LIMIT-TO (EXACTKEYWORD,“Business Resilience”) OR LIMIT-TO (EXACTKEYWORD,“Business Model”) OR LIMIT-TO (EXACTKEYWORD,“Digital Storage”) OR LIMIT-TO (EXACTKEYWORD,“Digital Technology”) OR LIMIT-TO (EXACTKEYWORD,“Decisions Makings”) OR LIMIT-TO (EXACTKEYWORD,“Small Additionally, Medium-sized Enterprise”) OR LIMIT-TO (EXACTKEYWORD,“SME”) OR LIMIT-TO (EXACTKEYWORD,“Technological Change”) OR LIMIT-TO (EXACTKEYWORD,“Technological Innovation”) OR LIMIT-TO (EXACTKEYWORD,“Business Strategy”) OR LIMIT-TO (EXACTKEYWORD,“Business Opportunities”) OR LIMIT-TO (EXACTKEYWORD,“Business Development”) OR LIMIT-TO (EXACTKEYWORD,“Digitalisation”) OR LIMIT-TO (EXACTKEYWORD,“Business Process”) OR LIMIT-TO (EXACTKEYWORD,“Business Performance”) OR LIMIT-TO (EXACTKEYWORD,“Business Operation”) OR LIMIT-TO (EXACTKEYWORD,“Business Modeling”) OR LIMIT-TO (EXACTKEYWORD,“Business Environment”) OR LIMIT-TO (EXACTKEYWORD,“SMEs”) OR LIMIT-TO (EXACTKEYWORD,“Digital Technologies”)) AND (LIMIT-TO (DOCTYPE,“ar”) OR LIMIT-TO (DOCTYPE,“re”) OR LIMIT-TO (DOCTYPE,“ch”)) AND (EXCLUDE (SUBJAREA,“ENER”) OR EXCLUDE (SUBJAREA,“ENVI”) OR EXCLUDE (SUBJAREA,“MEDI”) OR EXCLUDE (SUBJAREA,“CENG”) OR EXCLUDE (SUBJAREA,“IMMU”) OR EXCLUDE (SUBJAREA,“PHAR”) OR EXCLUDE (SUBJAREA,“PHYS”) OR EXCLUDE (SUBJAREA,“PSYC”) OR EXCLUDE (SUBJAREA,“ARTS”) OR EXCLUDE (SUBJAREA,“AGRI”) OR EXCLUDE (SUBJAREA,“EART”)).

This refined search query resulted in 51 relevant documents that were included in the systematic literature review.

The inclusion criteria for the selected studies were as follows:

• Published in peer-reviewed journals, conference proceedings, or book chapters to ensure the quality and credibility of the included research.
• Focused on the topics of digital transformation, business resilience, and/or digital marketing in the context of small businesses and startups. This criterion ensured the relevance of the studies to the review’s objectives.
• Published in the English language to facilitate the review and synthesis process.
• Available in full-text format to enable a comprehensive analysis of the study content.
• The exclusion criteria were as follows:
• Studies from subject areas not directly relevant to the scope of the review, such as energy, environmental sciences, medicine, and arts. This step helped to maintain the focus on the core research domains.
• Studies that did not provide empirical findings or in-depth discussions on the research topic, as they would not contribute significantly to the review’s objectives.
• Duplicate or redundant publications to avoid biasing the synthesis of the literature.

2.2. Data Extraction and Synthesis

The 51 selected studies were thoroughly reviewed, and the following key information was extracted:

• Bibliographic details (author, year of publication, journal/conference, etc.) to contextualize the research.
• Research objectives and methodologies employed to understand the study design and approach.
• Key findings and insights related to digital transformation, business resilience, and digital marketing to identify the core themes and trends.
• Limitations and future research directions to inform the research gaps and potential avenues for further investigation.

The extracted data were synthesized using a thematic analysis approach to identify the overarching research trends, emerging themes, and areas requiring further exploration. This process enabled the development of a comprehensive and coherent understanding of the current state of knowledge in the field.

3. Results of Bibliometric Analysis

The bibliometric analysis of the research literature on digital transformation, business resilience, and the implications for small businesses and startups revealed several interesting trends and insights.

The bibliometric analysis reveals a significant increase in the volume of research publications related to digital transformation, business resilience, and the implications for small businesses and startups over the past decade. The first search query, which used the broad term “business AND digital* AND market* AND resili*”, returned 33 publications in 2024 (over the first five months) and 87 publications in 2023, indicating a growing academic and practical interest in this field. The second, more refined search query, which incorporated specific keywords like “Digitalization”, “Resilience”, and “Digital Transformation”, also showed a consistent upward trend, with 22 publications in 2023 and 7 publications in 2022. This consistent increase in research output across both search strategies suggests that the topic of digital transformation and business resilience has become increasingly prominent in the scholarly literature, reflecting the critical importance of these issues for small businesses and startups navigating the rapidly evolving digital landscape (see Figure 2).

The bibliometric analysis of the subject area distribution reveals that the research publications related to digital transformation, business resilience, and the implications for small businesses and startups span a diverse range of academic disciplines.

The dominant subject area is Business, Management, and Accounting, with 113 publications in the broader search and 35 publications in the more refined search. This finding is not surprising, as the core focus of this research is on the strategic and operational aspects of how businesses, particularly small enterprises and startups, navigate the challenges and opportunities presented by digital transformation.

The strong representation of Computer Science, with 77 publications in the broader search and 13 publications in the refined search, underscores the technological underpinnings of digital transformation and the need for research to address the technical enablers and implications of adopting emerging technologies.

The significant presence of publications in the Social Sciences, with 62 and 12 publications, respectively, suggests a growing recognition of the human and organizational factors involved in successful digital transformation, such as the impact on employee attitudes, skills, and job-related factors.

The subject areas of Economics, Econometrics, and Finance, as well as Engineering, also feature prominently, with 56 and 15 publications, and 56 and 6 publications, respectively. These findings indicate the interdisciplinary nature of this research field, which encompasses the economic and financial implications of digital transformation, as well as the engineering and technological aspects of implementing digital solutions.

The inclusion of other subject areas, such as Decision Sciences, Environmental Science, Energy, Mathematics, and Earth and Planetary Sciences, albeit to a lesser extent, further highlights the diverse perspectives and potential applications of this research, ranging from decision-making frameworks to sustainability and energy-related considerations.

This broad subject area distribution reflects the multifaceted nature of digital transformation and the need for a holistic, interdisciplinary approach to understanding its impact on small businesses and startups. By drawing on expertise from various academic disciplines, researchers can develop a more comprehensive understanding of the challenges and solutions for enhancing the resilience of these organizations in the digital age (see Figure 3).

The bibliometric analysis reveals a diverse global representation in the research publications related to digital transformation, business resilience, and the implications for small businesses and startups. The United Kingdom, Italy, and the United States are the top three countries in terms of research output, with 27, 25, and 25 publications, respectively, in the broader search, and 8, 9, and 7 publications, respectively, in the more refined search (see Figure 4).

Several emerging economies are also well-represented in the research, with India, Malaysia, China, and Indonesia each contributing a significant number of publications. These findings suggest that the challenges and opportunities presented by digital transformation and the need for enhancing business resilience are of global concern, transcending geographical and economic boundaries.

The presence of other European countries, such as France, Germany, Spain, Portugal, Finland, and Romania, further highlights the widespread interest in these topics across the continent. Meanwhile, the inclusion of countries like Pakistan, Russia, Iran, Nigeria, and Norway demonstrates the truly global nature of this research field.

This diverse geographical distribution of research publications underscores the universal relevance of digital transformation and business resilience, as scholars and practitioners from around the world seek to address the unique challenges faced by small businesses and startups in the digital age. The broad international representation also suggests that effective solutions and best practices are likely to emerge from a variety of cultural and economic contexts, enriching the understanding and applicability of this research domain.

The bibliometric analysis reveals a dynamic research landscape, underscoring the pressing need to comprehend the intricate challenges and opportunities confronting small businesses and startups amid digital transformation. This global focus, coupled with interdisciplinary collaboration and widespread institutional involvement, underscores the topic’s relevance to academia and industry practitioners alike.

These findings are instrumental in shaping future research agendas and crafting tailored support mechanisms and policy interventions. By grasping the present research landscape, scholars, policymakers, and industry stakeholders can collaboratively tackle crucial gaps, propelling advancements in the field and empowering small businesses and startups to fortify their resilience and competitiveness in the digital era.

To better understand the landscape of research in digital transformation and business resilience, we conducted a bibliometric analysis. This analysis reveals the complex relationships between various themes and identifies prominent areas of study. Figure 5 and Figure 6 present a network and density visualization of these themes, highlighting their interconnections and the relative importance of each within the research domain.

The network visualization shows several significant clusters, each representing a different aspect of the research domain. The centrality and size of nodes like “digital transformation”, “COVID-19”, “resilience”, and “commerce” underscore their prominence and interconnectivity within the field. The thematic clusters are distinguished by different colors, reflecting distinct yet interconnected areas of research. For instance, the red cluster centers around themes related to “resilience”, “digitalization”, and “industry 4.0”, indicating a strong focus on how digital transformation aids organizational resilience and technological advancement. The blue cluster, featuring nodes like “digital technologies”, “supply chain resilience”, and “digital marketing”, points to the technological and operational aspects of digital transformation. The green cluster, with nodes such as “commerce”, “supply chains”, and “sustainable development”, highlights the economic and environmental dimensions. Other notable nodes include “innovation”, “cybersecurity”, and “entrepreneurship”, which are scattered across different clusters, showing their broad relevance across various aspects of digital transformation.

The visualization reveals several distinct clusters. The red cluster focuses on resilience, digitalization, and Industry 4.0, reflecting the urgent need for businesses to adapt and remain resilient in the face of technological changes and disruptions. The blue cluster highlights the role of digital technologies, supply chain resilience, and digital marketing, emphasizing the technological backbone required for effective digital transformation. The green cluster pertains to commerce, supply chains, and sustainable development, showing the economic and environmental implications of digital transformation. Other clusters include themes related to innovation, cybersecurity, and entrepreneurship, underscoring the diverse facets of digital transformation and business resilience.

Network visualization underscores the interconnected nature of digital transformation themes and their relevance across different contexts and industries. Future research should continue to explore these interconnections, particularly how digital transformation can enhance business resilience through improved marketing capabilities and innovative practices. Additionally, comparative studies across industries and geographical contexts can provide deeper insights into the effectiveness of different digital transformation strategies.

In conclusion, network visualization serves as a valuable tool for identifying research gaps and guiding future studies in the dynamic field of digital transformation and business resilience. By understanding these interconnected themes, researchers and practitioners can better navigate the challenges and opportunities presented by the digital era.

4. Academic Research on Digital Transformation and Business Resilience

4.1. Research Trends

To ensure a rigorous and comprehensive analysis, an initial pool of 247 studies was identified using Scopus advanced search criteria focused on digital transformation, business resilience, and digital marketing in the context of small businesses and startups. This initial selection was refined through a systematic screening process based on relevance, methodological quality, and thematic focus. The screening process involved reading abstracts and, where necessary, full texts to ensure alignment with the review’s objectives. As a result, the pool was narrowed down to 51 studies that met the stringent inclusion criteria. These 51 studies were then thoroughly reviewed and synthesized to extract key information, including bibliographic details, research objectives, methodologies, findings, and limitations. This systematic approach allowed for the identification of core themes and trends, providing a robust foundation for understanding the role of business resilience and marketing capabilities in the digital transformation environment.

In this section, as illustrated in Figure 7, we delve into current research trends that highlight the transformative impact of digital technologies across various business domains. Digital transformation stands out for its ability to optimize operations, while emerging technologies like blockchain, IoT, and AI are revolutionizing supply chain management. Digital marketing plays a crucial role in empowering small and medium enterprises (SMEs) to overcome traditional barriers and compete effectively in the digital marketplace. Additionally, organizational flexibility and digital skills are recognized as key factors in maintaining competitiveness and supporting resilient operations. The evolving landscape also emphasizes the growing importance of cyber risk management and the adoption of agile strategies to navigate market uncertainties. Ultimately, technology not only boosts operational efficiency but also drives sustainable business practices.

4.1.1. Digital Transformation and Its Impact on Business Operations, Resilience, and Performance

The digital transformation of businesses has emerged as a prominent research trend, with scholars exploring its multifaceted impact on various organizational aspects. A key focus of this research stream is understanding how the adoption of digital technologies can reshape business operations, enhance organizational resilience, and influence overall performance [21].

Studies have highlighted the critical role of digital transformation in enabling businesses to adapt to rapidly changing market conditions and external disruptions [22]. Researchers have found that the strategic integration of digital technologies, such as cloud computing, data analytics, and automation, can help organizations become more agile, flexible, and responsive to dynamic environments. By leveraging digital capabilities, firms can streamline their internal processes, improve decision-making, and enhance their ability to sense and respond to market shifts [23].

A growing body of literature has also examined the relationship between digital transformation and organizational resilience. Researchers argue that the implementation of digital technologies can strengthen a firm’s capacity to anticipate, adapt, and recover from disruptive events, such as the COVID-19 pandemic. Digital platforms, advanced analytics, and integrated supply chain systems can provide real-time visibility, facilitate rapid response, and enable business continuity, thereby enhancing an organization’s overall resilience [24].

Furthermore, studies have explored the impact of digital transformation on business performance, exploring how the strategic deployment of digital capabilities can contribute to improved financial, operational, and market outcomes [25]. Researchers have found that digital transformation can lead to cost savings, increased productivity, enhanced customer experience, and the development of new revenue streams. However, the relationship between digital transformation and performance is complex, and researchers have highlighted the importance of aligning digital initiatives with the firm’s strategic objectives and organizational resources [26].

4.1.2. Leveraging Digital Technologies for Supply Chain Management and Circular Economy

The integration of digital technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and blockchain, has emerged as a key research trend in the context of supply chain management and circular economy practices.

Scholars have explored how these technologies can enhance supply chain resilience, sustainability, and transparency. For example, blockchain-enabled supply chains can provide secure and immutable record-keeping, enabling better traceability of materials and products, which is crucial for implementing circular economy principles [27]. IoT sensors and analytics can also improve real-time visibility, predictive capabilities, and automated decision-making across the supply chain, contributing to enhanced responsiveness and adaptability [28].

Furthermore, researchers have investigated the potential of digital technologies to support the transition towards a more circular economy. Studies have examined how data-driven supply chain management, powered by technologies like AI and machine learning, can optimize resource utilization, reduce waste, and enable the recirculation of materials [29]. This integration of digital capabilities and circular economy principles can help businesses enhance their environmental sustainability, operational efficiency, and long-term resilience [30].

4.1.3. Adoption and Implications of Digital Marketing and e-Commerce for SMEs

The widespread adoption of digital marketing and e-commerce strategies has been a prominent research area, particularly in the context of small and medium-sized enterprises (SMEs). Scholars have examined the opportunities and challenges faced by SMEs as they navigate the digital transformation of their marketing and sales activities.

Research has highlighted the significant potential of digital marketing and e-commerce for SMEs, as these approaches can help overcome traditional constraints, such as limited resources and geographic reach, and enable them to compete more effectively in the digital marketplace [31]. Studies have found that the adoption of digital marketing tools, such as social media, search engine optimization, and online advertising, can help SMEs enhance their brand visibility, better understand customer preferences, and engage more effectively with their target audiences [32].

Moreover, the shift towards e-commerce has been a crucial enabler for SMEs, allowing them to expand their customer base, access new markets, and improve their operational efficiency [33]. Researchers have explored various factors that influence the successful implementation of e-commerce by SMEs, including technological readiness, organizational capabilities, and entrepreneurial orientation [34].

However, the literature also highlights the challenges faced by SMEs in fully embracing digital marketing and e-commerce, such as resource constraints, technological barriers, and the need for developing digital skills and capabilities [35]. Scholars have emphasized the importance of developing tailored strategies and support mechanisms to help SMEs navigate the digital transformation of their marketing and sales activities [36,37].

4.1.4. Role of Organizational Capabilities (e.g., Ambidexterity, Resilience) in Navigating Disruptions

The role of organizational capabilities, particularly ambidexterity and resilience, has emerged as a crucial research trend in the context of digital transformation and business survival.

Organizational ambidexterity, the ability to simultaneously explore new opportunities and exploit existing capabilities, has been recognized as a key dynamic capability that enables firms to navigate disruptive changes effectively [38,39]. Studies have found that ambidextrous organizations, which can balance exploration and exploitation activities, are better equipped to adapt to technological shifts, rapidly changing customer demands, and competitive pressures [40].

In the context of digital transformation, researchers have examined how firms can develop and leverage ambidextrous capabilities to thrive in turbulent environments. This includes understanding the organizational structures, processes, and leadership approaches that can foster ambidexterity and allow firms to simultaneously pursue incremental innovations and radical, disruptive innovations [38,40].

Organizational resilience, the ability to anticipate, adapt, and bounce back from disruptive events, has also emerged as a critical capability for firms navigating the digital transformation landscape [41]. Researchers have explored how organizations can build resilience through the development of slack resources, flexible processes, and collaborative networks, enabling them to withstand and recover from unexpected shocks [42].

Studies have highlighted the interplay between organizational ambidexterity and resilience, suggesting that firms that can balance exploration and exploitation activities are better equipped to adapt and recover from crises [43]. This dynamic capability perspective underscores the importance of developing organizational structures, processes, and mindsets that can help firms navigate the challenges and seize the opportunities presented by digital transformation [39].

4.1.5. Digitalization and Its Influence on Employee Attitudes, Psychology, and Job-Related Factors

The impact of digitalization on the workforce has garnered significant research attention, as scholars explore the ways in which digital transformation can influence employee attitudes, psychology, and job-related factors.

One key area of focus is the impact of digital technologies on employee well-being and job satisfaction. Researchers have examined how the introduction of new digital tools, remote work arrangements, and increased use of automation can affect employee stress levels, work–life balance, and overall job satisfaction [44]. Studies have highlighted the importance of developing effective change management strategies, employee training, and supportive organizational cultures to mitigate the potential negative impacts of digitalization on the workforce [45].

Another research trend in this domain explores the influence of digitalization on employee self-efficacy, resilience, and adaptability. Scholars have investigated how the adoption of digital technologies can shape employee skills, knowledge, and mindsets, enabling them to navigate the changing work environment more effectively [5]. This includes understanding the role of digital leadership in fostering a culture of continuous learning and development, as well as the strategies organizations can employ to support their employees’ digital transformation journey [46].

Furthermore, researchers have examined the impact of digitalization on job-related factors, such as job design, task allocation, and performance management. Studies have explored how the integration of digital technologies can alter job responsibilities, redefine work processes, and create new forms of job-related demands and resources [47]. This line of research emphasizes the importance of aligning digital transformation initiatives with the needs and capabilities of the workforce to ensure positive outcomes for both the organization and its employees [12,48].

4.1.6. Importance of Digital Skills and Knowledge Management in Supporting Business Operations

The development and management of digital skills and knowledge have emerged as critical research areas in the context of digital transformation and business resilience.

Scholars have emphasized the growing importance of digital skills, such as data analytics, programming, and digital marketing, in enabling organizations to effectively leverage digital technologies and compete in the modern business landscape [49]. Studies have explored the strategies organizations can employ to attract, develop, and retain employees with the necessary digital competencies, as well as the role of digital training and education in upskilling the workforce [50].

Moreover, researchers have examined the linkages between digital skills and organizational performance, highlighting how the cultivation of a digitally skilled workforce can contribute to improved operational efficiency, innovation, and responsiveness [49]. This research emphasizes the strategic importance of aligning digital skill development with the organization’s overall business objectives and digital transformation initiatives.

In parallel, the role of knowledge management in supporting digital transformation has gained significant attention. Studies have explored how organizations can effectively capture, share, and leverage digital knowledge to enhance decision-making, innovation, and adaptability [24]. This includes understanding the technological, organizational, and cultural factors that enable effective knowledge management practices in the context of digital transformation [5].

Researchers have also examined the interplay between digital skills, knowledge management, and organizational resilience. They have investigated how the integration of digital capabilities and the effective management of digital knowledge can help organizations anticipate, adapt, and respond to disruptive events more effectively [51,52]. This research underscores the strategic importance of developing and maintaining a digitally enabled, knowledge-driven organization to enhance business resilience in the face of technological and market changes [22].

4.1.7. Emergence of New Business Models and Revenue Streams Driven by Digital Transformation

The digital transformation of businesses has also led to the emergence of new business models and revenue streams, which have been a prominent focus of research in this domain.

Scholars have explored how organizations are leveraging digital technologies to create innovative business models that unlock new sources of value and revenue [53]. This includes the development of platform-based business models, servitization strategies, and the integration of digital capabilities into traditional business operations [25,54].

For example, researchers have examined how the rise of digital platforms has enabled businesses to create new revenue streams through data monetization, subscription-based models, and the facilitation of multi-sided markets [55]. Studies have also explored the implications of servitization, where organizations integrate digital technologies to offer product–service bundles, thereby diversifying their revenue sources and enhancing customer value [56].

Furthermore, scholars have investigated how businesses are integrating digital capabilities, such as data analytics, artificial intelligence, and automation, into their core operations to drive operational efficiencies, improve customer experiences, and create new revenue streams [57]. This research highlights the strategic importance of business model innovation in the context of digital transformation, as organizations seek to adapt to rapidly changing market conditions and evolving customer preferences.

4.1.8. Cyber Risk Management and the Development of the Cyber Insurance Market

The growing prominence of digital technologies has also led to an increased focus on cyber risk management and the development of the cyber insurance market as a research trend.

Scholars have examined the various types of cyber threats and vulnerabilities that organizations face in the digital age, including data breaches, ransomware attacks, and system vulnerabilities [58]. This research has explored the organizational, technological, and regulatory factors that influence the effectiveness of cyber risk management strategies, as well as the role of emerging technologies, such as blockchain and AI, in enhancing cybersecurity [59].

In parallel, researchers have investigated the development and evolution of the cyber insurance market, which has become an increasingly important tool for organizations to transfer and manage their cyber risks [60]. Studies have explored the challenges faced by the cyber insurance industry, such as the lack of historical data, difficulties in accurately assessing and pricing cyber risks, and the need for standardized policies and regulations [59].

Furthermore, researchers have examined the interplay between cyber risk management, cyber insurance, and organizational resilience. They have investigated how the adoption of comprehensive cyber risk management strategies, combined with the use of cyber insurance, can enhance an organization’s ability to anticipate, respond, and recover from cyber incidents [34,61,62]. This research trend underscores the strategic importance of cyber risk management in the digital transformation landscape, as organizations seek to protect their critical assets, maintain business continuity, and build long-term resilience.

4.1.9. Agility and Adaptability as Key Strategic Responses to Market Uncertainties

The ability to maintain agility and adaptability in the face of market uncertainties has emerged as a crucial research trend in the context of digital transformation and business resilience.

Scholars have explored how organizations can develop and leverage agile capabilities to respond effectively to rapidly changing market conditions, customer preferences, and technological advancements [63]. This includes understanding the organizational structures, processes, and leadership approaches that can foster agility, such as the use of cross-functional teams, iterative development cycles, and flexible resource allocation [5].

In the context of digital transformation, researchers have examined how the integration of digital technologies can enhance an organization’s agility and adaptability. Studies have found that the use of cloud computing, big data analytics, and automation can enable businesses to quickly sense and respond to market changes, rapidly develop and deploy new products or services, and adapt their operations to evolving customer needs [64].

Furthermore, researchers have explored the role of organizational culture and mindsets in supporting agility and adaptability. They have investigated how the cultivation of an entrepreneurial, risk-taking, and learning-oriented culture can empower organizations to experiment, innovate, and quickly pivot in response to market disruptions [9,65,66,67].

This research trend highlights the strategic importance of developing agile and adaptive capabilities as a means of navigating the uncertainties and complexities of the digital transformation era. By fostering organizational agility and adaptability, businesses can enhance their resilience, seize new opportunities, and maintain a competitive edge in rapidly evolving markets.

4.1.10. Interplay between Digital Technologies, Innovation, and Sustainability in Business Practices

The interconnections between digital technologies, innovation, and sustainability have emerged as a prominent research trend, as scholars explore the ways in which these elements can be leveraged to drive business resilience and long-term success.

Researchers have examined how the strategic deployment of digital technologies, such as the Internet of Things, blockchain, and artificial intelligence, can enable organizations to enhance their sustainability practices and transition towards more circular business models [68]. Studies have found that the integration of these technologies can improve resource efficiency, enable greater traceability and transparency in supply chains, and facilitate the reuse, recycling, and repurposing of materials [69].

This research highlights the potential for digital technologies to act as enablers of sustainable innovation, empowering organizations to develop new products, services, and business models that are environmentally and socially responsible [70]. By leveraging digital capabilities, firms can gain deeper insights into their environmental footprint, optimize their resource consumption, and explore innovative solutions that address sustainability challenges [71].

Furthermore, scholars have investigated the strategic implications of aligning digital transformation initiatives with sustainability goals. They have explored how organizations can develop dynamic capabilities that enable them to simultaneously pursue technological innovation and environmental sustainability, creating a synergistic relationship between these two critical business imperatives [72].

This research trend underscores the importance of a holistic, integrated approach to digital transformation, where organizations leverage digital technologies to drive not only operational efficiency and business performance but also environmental and social responsibility. By fostering this interplay between digital innovation and sustainability, firms can enhance their long-term resilience, competitiveness, and positive impact on the broader ecosystem.

Overall, the research trends identified in this systematic literature review highlight the multifaceted impact of digital transformation on business operations, strategy, and performance. The synthesis of these trends provides a comprehensive understanding of the key areas of focus in the academic literature, which can inform the development of practical solutions and guide future research directions.

4.2. Research Gaps

In this section, as illustrated in Figure 8, we explore the current research gaps in the field of digital transformation. The long-term implications of digital transformation on organizational structures and business models remain unclear, highlighting a critical gap in understanding. Limited research exists on the dynamic interactions between digital capabilities, organizational resilience, and financial performance, while the role of digital leadership in driving successful transformations is underexplored. Furthermore, there is a notable scarcity of studies investigating the societal and environmental impacts of digital technologies. The linkage between digital maturity, knowledge management, and innovation in SMEs requires further exploration, along with the need for comparative studies to analyze digital transformation experiences across different industries and geographical contexts. Additionally, research is needed to better understand the challenges and barriers faced by firms in adopting emerging digital technologies, as well as the role of digital ecosystems in enhancing supply chain resilience.

4.2.1. Long-Term Implications of Digital Transformation on Organizational Structures and Business Models

Digital transformation profoundly impacts organizational structures and business models. While short-term effects like improved operations are well studied, there is a need for research on long-term impacts. Understanding these changes requires comprehensive empirical studies and case examples. Practical insights can show how sustained digital adoption reshapes structures, hierarchies, and decision-making, evolving business models over time [25].

Companies like General Electric and Netflix illustrate this transformation. GE’s move to a software-centric model and Netflix’s shift from DVD rentals to streaming demonstrate how digital innovation leads to flatter structures and decentralized decisions. These examples highlight the importance of real-world applications in understanding digital transformation’s broader implications.

Digital transformation also evolves business models by enabling new revenue streams, enhancing customer engagement, and improving operational efficiencies. However, challenges like resistance to change, cultural shifts, and the need to upskill employees arise [22,25]. Longitudinal studies are essential in capturing these dynamics, providing insights into how digital transformation affects corporate culture and employee roles over time. Expanding research to include these aspects helps businesses prepare for sustained digital impacts, ensuring success in an increasingly digital landscape [39,73].

4.2.2. Dynamic Interactions between Digital Capabilities, Organizational Resilience, and Financial Performance

The literature emphasizes the importance of digital capabilities and organizational resilience in managing disruptions, yet their combined impact on financial performance is underexplored. Digital capabilities like advanced data analytics, cloud computing, and AI help organizations adapt swiftly and maintain continuity during crises. Similarly, organizational resilience, which includes a firm’s ability to anticipate and recover from disruptions, is crucial for sustaining operations and long-term viability. However, the interplay between these elements and their effect on financial performance needs further investigation.

Research should explore how digital capabilities enhance resilience through real-time decision-making, innovation, and supply chain management. For example, during COVID-19, companies with strong digital infrastructures adapted better to remote work, e-commerce, and supply chain disruptions, maintaining financial stability. Conversely, resilience can boost digital maturity by fostering continuous improvement and technology adoption.

Empirical and longitudinal studies can provide insights into how these dynamics evolve across industries, identifying patterns and developing models to predict how digital capabilities and resilience influence financial outcomes like revenue growth, profitability, and market share. Understanding these relationships can guide strategic investments in digital technologies and resilience-building, helping organizations thrive in a volatile business landscape [37,74].

4.2.3. Role of Digital Leadership in Driving Successful Digital Transformation

Digital leadership is crucial for successful digital transformation in organizations. These leaders understand the transformative potential of digital technologies and envision how they can achieve strategic goals. They foster innovation by encouraging employees to experiment and embrace change. Effective digital leaders excel in communication, ensuring stakeholders understand the purpose and benefits of transformation. They align digital initiatives with organizational strategy, making strategic investments.

Moreover, digital leaders prioritize upskilling employees to navigate the digital landscape. They implement training programs to develop necessary digital skills and mindset, overcoming resistance to change. Ultimately, the presence of adept digital leaders is pivotal in navigating complexity, fostering innovation, and aligning technology with strategic objectives for successful transformation within organizations [75].

4.2.4. Societal and Environmental Impact of Digital Technologies

While current research predominantly focuses on the organizational and economic implications of digital transformation, there exists a significant gap in understanding its broader societal and environmental impacts. While digital technologies have undoubtedly enhanced efficiency and innovation within organizations, their effects on society require deeper investigation. Future studies should broaden their scope to comprehensively analyze how digital transformations influence societal dynamics and environmental sustainability [76,77].

Key areas requiring scrutiny include the impact of digital technologies on employment patterns, addressing both job creation and displacement across various sectors. Furthermore, it is crucial to examine how these technologies contribute to income inequality, given the increasing importance of digital skills and access to technology in shaping economic opportunities. Additionally, rigorous exploration is needed on the implications for data privacy and security in an increasingly digitized world to uphold individual rights and maintain societal trust in digital systems. Lastly, the environmental footprint of digital technologies, encompassing aspects from energy consumption to electronic waste management, necessitates attention to mitigate potential ecological impacts and promote sustainable practices in technological development and deployment.

Expanding research efforts to encompass these dimensions will enable scholars to provide a more holistic understanding of the implications of digital transformation. Such knowledge is vital for policymakers, businesses, and society at large to navigate the complexities of digital advancements responsibly, ensuring that benefits are equitably distributed while minimizing risks to societal well-being and environmental sustainability.

4.2.5. Linkages between Digital Maturity, Knowledge Management, and Innovation in SMEs

The existing literature underscores the significance of digital skills and knowledge management for supporting business operations, particularly within small and medium-sized enterprises (SMEs). However, there remains a notable gap in understanding the specific interrelationships among digital maturity, knowledge management practices, and innovation capabilities in this context. Researchers are encouraged to delve deeper into how SMEs can effectively harness their digital capabilities and knowledge assets to foster innovative business practices and bolster their competitiveness [78].

Exploring these relationships is crucial as SMEs often face unique challenges in adopting and integrating digital technologies compared to larger enterprises. Understanding how SMEs can optimize their digital maturity alongside effective knowledge management strategies could illuminate pathways for enhancing innovation. By identifying best practices and success factors, such research could offer practical insights that enable SMEs to leverage their inherent agility and responsiveness to drive sustainable growth and competitive advantage in dynamic market environments.

4.2.6. Comparative Studies Analyzing Digital Transformation Experiences across Industries and Geographical Contexts

Current research predominantly examines digital transformation within specific industries or geographical regions, which restricts the ability to draw comprehensive insights and discern commonalities or variations in organizational experiences. To advance understanding in this field, future studies should embrace a comparative methodology. This approach would involve analyzing digital transformation across a spectrum of industries, sectors, and global regions to uncover contextual factors that shape the adoption and outcomes of digital technologies [79,80,81,82].

By adopting a comparative lens, researchers can identify patterns and differences in how organizations from diverse backgrounds navigate digital transformation. Such insights can illuminate best practices, challenges, and strategies that are applicable across different contexts. Additionally, comparative studies can offer nuanced perspectives on how regulatory environments, cultural norms, market conditions, and technological infrastructure influence the digital transformation journey. Ultimately, a comparative approach not only enriches scholarly understanding but also provides practical guidance for organizations seeking to optimize their digital strategies and achieve sustainable competitive advantage in an increasingly digitalized world.

4.2.7. Challenges and Barriers in Adopting Emerging Digital Technologies

Although considerable attention has been given to the potential benefits of emerging digital technologies like blockchain, artificial intelligence, and the Internet of Things (IoT), there remains a significant gap in understanding the practical challenges and barriers organizations encounter when trying to adopt and integrate these innovations into their business operations. Future research should focus on investigating the technical, organizational, and regulatory hurdles that often obstruct the widespread adoption of these technologies.

Technical challenges may include issues related to scalability, interoperability, and the complexity of implementation. Organizational barriers could involve resistance to change, lack of expertise, or the need for substantial investment in infrastructure and training. Regulatory hurdles, such as compliance with data protection laws or industry-specific regulations, can also pose significant obstacles to adoption.

Furthermore, scholars should explore strategies and support mechanisms that organizations can employ to overcome these challenges effectively. This may involve developing frameworks for assessing readiness and maturity in adopting new technologies, creating guidelines for regulatory compliance, or establishing partnerships with technology providers and industry peers to share knowledge and resources.

By addressing these critical gaps in research, scholars can provide valuable insights and practical recommendations to help organizations navigate the complexities of adopting emerging digital technologies. This knowledge is essential for fostering innovation, improving operational efficiencies, and maintaining competitiveness in an increasingly digitalized global economy [57,83,84].

4.2.8. Role of Digital Ecosystems and Stakeholder Collaboration in Enhancing Supply Chain Resilience

Research into leveraging digital technologies for supply chain management and circular economy practices has underscored their potential benefits. However, there is a notable gap in understanding the specific role of digital ecosystems and collaborative networks in enhancing supply chain resilience. Future studies should explore how organizations can cultivate digital ecosystems and strategic partnerships to bolster the transparency, agility, and responsiveness of their supply chains, especially when confronting disruptions [85,86].

Digital ecosystems encompass interconnected networks of stakeholders, technology providers, and customers that collaborate to enhance supply chain efficiency and resilience. By fostering these ecosystems, organizations can leverage shared data insights, real-time visibility, and collaborative decision-making capabilities. Strategic partnerships further enhance resilience by pooling resources, capabilities, and expertise to proactively address supply chain vulnerabilities and adapt swiftly to market changes or disruptions.

Moreover, studying successful examples of digital ecosystem development and stakeholder collaboration across industries and regions can provide valuable insights and best practices. This research can elucidate how organizations can strategically integrate digital technologies, cultivate trust among partners, and build adaptive supply chains that thrive in dynamic and uncertain environments. Ultimately, advancing knowledge in this area will empower businesses to strengthen their supply chain resilience and sustain competitive advantage in today’s complex global marketplace.

By addressing these research gaps, scholars can contribute to a more comprehensive understanding of the multifaceted implications of digital transformation, particularly in the context of small businesses and startups. This knowledge can inform the development of practical solutions and support mechanisms to help organizations navigate the challenges and leverage the opportunities presented by the digital era, ultimately enhancing their long-term resilience and competitiveness.

5. Standards and Regulations

5.1. Overview of Digital Transformation Standards and Guidelines

The digital transformation of businesses has led to the development of various standards and guidelines to support organizations, particularly small and medium-sized enterprises (SMEs), in their journey towards digitalization. These standards and guidelines provide a framework for the effective integration of digital technologies, ensuring quality, interoperability, and compliance with regulatory requirements.

One of the key standards organizations in this domain is the International Organization for Standardization (ISO). ISO has developed several standards that are particularly relevant for SMEs undergoing digital transformation:

• ISO 9001:2015—Quality Management System: This standard specifies the requirements for a quality management system, helping SMEs to consistently provide products and services that meet customer and regulatory requirements [87,88,89].
• ISO 50001—Energy Management: This standard provides a framework for SMEs to establish energy management systems, improve energy efficiency, and reduce energy-related costs [90].
• ISO 14046—Water Footprint: This standard specifies the principles, requirements, and guidelines for quantifying the water footprint of products, processes, and organizations, supporting sustainability efforts [91].
• ISO 20121—Event Sustainability Management: This standard offers guidance on implementing sustainable practices in event management, which can be applied by SMEs for various events and activities [92].

These ISO standards help SMEs build customer confidence, meet regulatory requirements, reduce costs, and gain better access to global markets by aligning their operations with internationally recognized best practices.

In addition to the ISO standards, the European Union has also recognized the pivotal role of standards in supporting the digital transformation of industry. The European Parliamentary Research Service (EPRS) has published a briefing highlighting the economic implications and policy developments related to the digitalization of EU industry, including the importance of standards [93].

The EPRS briefing emphasizes that the timely and harmonized adoption of standards is crucial for the ongoing digitalization of industry. Standards can facilitate interoperability, promote innovation, and ensure the successful implementation of digital solutions on a global scale. The briefing identifies several priority domains for standardization, including 5G communications, cloud computing, the Internet of Things (IoT), big data technologies, and cybersecurity.

Furthermore, the European Commission has introduced specific policy measures to deliver on the digital single market strategy, including a two-pillar plan to address the challenges of ICT standards-setting. The first pillar focuses on setting standards for core digital technologies, while the second pillar aims to improve the efficiency and collaboration of the standards-setting process in Europe and internationally.

These standards and guidelines provide a comprehensive framework for SMEs and startups to navigate the digital transformation landscape. By aligning their operations with these internationally recognized standards, small businesses can enhance their competitiveness, improve their operational efficiency, and build trust with customers and partners.

5.2. ISO 55000 Series and SME Digitalization for Building Resilience

The ISO 55000 series of standards provides a comprehensive framework for organizations to effectively manage their physical assets and enhance overall organizational resilience. While these standards were initially developed with larger enterprises in mind, they hold significant relevance and potential for small and medium-sized enterprises (SMEs) as they undergo digital transformation [94].

The ISO 55000 series, which includes ISO 55001 (Asset Management Systems) and ISO 55002 (Guidelines for the Application of ISO 55001), offers a structured approach to aligning an organization’s asset management strategies with its broader business objectives. This alignment is particularly crucial for SMEs navigating the digital transformation landscape, as it can help them optimize the utilization and maintenance of their technological assets, ensuring continuous operations and adaptability [94].

The ISO 55000 series can serve as a valuable framework to support SMEs in their digital transformation journey, particularly in enhancing organizational resilience. By aligning their asset management strategies with the requirements of the ISO 55000 standards, SMEs can ensure that their digital assets, infrastructure, and processes are effectively managed, maintained, and optimized for continuous operations [94].

For example, the guidelines in ISO 55002 on risk management, performance evaluation, and continual improvement can help SMEs proactively identify and mitigate potential threats to their digital systems, ensuring their resilience in the face of disruptions. Additionally, the emphasis on cross-functional collaboration and the integration of asset management with overall business objectives can facilitate a more holistic approach to digital transformation, where technology is leveraged to support the organization’s strategic goals and enhance its overall resilience.

5.3. Maturity Levels for SME Digitalization and Resilience

• Reactive Maturity (Firefighter Approach):

In this initial stage, SMEs respond to the immediate need for digital adoption, often in a reactive manner, such as implementing a new e-commerce platform or adopting a cloud-based communication tool. The organization’s focus is on addressing pressing operational necessities without a comprehensive, long-term strategy. This reactive approach can be likened to a “firefighter” mentality, where the organization simply reacts to the high-priority digital needs as they arise [95,96,97].

2.

Top–Down Approach (Expert Team):

In the next stage, SMEs may take a more proactive, top–down approach to digital transformation. This involves a team of experts, often including senior management, who assess the organization’s digital needs and develop a strategic plan for implementation. This method allows for a more holistic and coordinated approach to digitalization, aligning it with the overall business objectives. However, there is a risk of this approach failing to fully engage and empower the entire organization, potentially leading to resistance or limited adoption [95,96,97].

3.

Bottom–Up Method (Continuous Feedback Loop):

The most mature approach to SME digitalization for resilience is the bottom–up method, which involves continuously collecting and analyzing data from the market, sales, and customer interactions. This data-driven approach enables SMEs to identify emerging trends, understand evolving customer needs, and simulate potential scenarios to determine the optimal digital solutions. By maintaining this continuous feedback loop, SMEs can maximize the efficiency and responsiveness of their digital initiatives, ensuring that they remain aligned with the market and customer demands [95,96,97].

Furthermore, the maturity levels outlined earlier can provide a roadmap for SMEs to navigate their digital transformation journey, starting from a reactive, firefighter-like approach and gradually transitioning towards a more strategic, data-driven, and resilient bottom–up method. By aligning this digital maturity model with the principles of the ISO 55000 series, SMEs can develop a comprehensive and structured framework for building organizational resilience through effective asset management and digital capabilities.

5.4. Regulatory Frameworks Governing Digital Technologies and Cybersecurity

Alongside the development of standards, the digital transformation of businesses has also given rise to various regulatory frameworks governing the use of digital technologies and the management of cybersecurity risks.

• Data Protection and Privacy Regulations:

  a.

  The General Data Protection Regulation (GDPR) in the European Union establishes a comprehensive framework for the protection of personal data and the rights of individuals [98].

  b.

  Similar data protection regulations, such as the California Consumer Privacy Act (CCPA) in the United States, have also been implemented to ensure the privacy and security of consumer data [99].

• Cybersecurity Regulations:

  a.

  The EU Directive on Security of Network and Information Systems (NIS Directive) requires Member States to establish national cybersecurity strategies and designate operators of essential services to implement appropriate security measures [100].

  b.

  The Network and Information Security (NIS) Regulations in the UK, based on the NIS Directive, mandate the implementation of cybersecurity measures for operators of essential services and digital service providers [101].

• Emerging Regulations for Specific Technologies:

  a.

  The EU’s proposed Artificial Intelligence Act aims to establish a comprehensive regulatory framework for the development, deployment, and use of AI systems, including requirements for risk assessment and human oversight [102].

  b.

  The EU’s Digital Services Act and Digital Markets Act seek to address the challenges posed by large digital platforms, such as content moderation, transparency, and fair competition [103].

  c.

  These regulatory frameworks have significant implications for small businesses and startups as they undergo digital transformation. Compliance with these regulations can help organizations mitigate cybersecurity risks, protect customer data, and build trust with stakeholders.

5.5. Compliance Requirements for Small Businesses and Startups

Small businesses and startups face unique challenges in navigating the compliance requirements associated with digital transformation. Often operating with limited resources and expertise, these organizations must carefully balance the adoption of digital technologies with the need to comply with relevant regulations and standards.

Key compliance requirements for small businesses and startups include the following:

• Data Protection and Privacy:

  a.

  Ensuring compliance with data protection regulations, such as GDPR or CCPA, by implementing appropriate data management practices, securing customer data, and obtaining necessary consent.

  b.

  Developing and implementing data protection policies and procedures, as well as designating a data protection officer or responsible individual.

• Cybersecurity Measures:

  a.

  Implementing robust cybersecurity controls, such as access controls, encryption, and incident response plans, to protect against cyber threats.

  b.

  Complying with sector-specific cybersecurity regulations, such as the NIS Directive or NIS Regulations, if the business is deemed an operator of essential services or a digital service provider.

• Emerging Technology Regulations:

  a.

  Adhering to regulations governing the development and use of emerging technologies, such as the proposed EU AI Act, which may require risk assessments, human oversight, and transparency measures.

  b.

  Staying informed about the evolving regulatory landscape and adapting business practices accordingly.

• Conformity with Standards and Certifications:

  a.

  Aligning business operations with relevant international standards, such as ISO 9001, ISO 50001, or ISO 20121, to demonstrate compliance and gain market access [87,90,92].

  b.

  Obtaining industry-specific certifications or seals of approval to build trust and credibility with customers and partners.

To support small businesses and startups in meeting these compliance requirements, policymakers, industry associations, and entrepreneurial support networks can play a crucial role. This may include the following:

• Providing guidance, training, and resources on regulatory compliance and standards adoption.
• Facilitating access to affordable compliance solutions and cybersecurity services.
• Establishing regulatory sandboxes or testing environments to help small businesses experiment with new technologies while ensuring compliance.
• Advocating for regulatory frameworks that are proportionate and tailored to the needs of small businesses and startups.

By navigating the complex landscape of standards and regulations, small businesses and startups can build a solid foundation for their digital transformation journey, mitigate risks, and enhance their competitiveness in the broader market.

5.6. EU Digitalization and Standards

The European Union has recognized the critical role that standards play in the ongoing digital transformation of industry and the economy. As the briefing by Ioannis Zachariadis outlines, standards can facilitate compatibility, interoperability, and information transfer between economic agents and connected technologies like the Internet of Things, big data, robotics, and AI [93]. Moreover, standards can act as accelerators of change by promoting the widespread adoption of these innovative digital technologies.

However, the briefing notes that the development of new standards in digital domains is increasingly taking place outside of Europe, which could undermine the EU’s future competitiveness [93]. In response, the European Commission has outlined a two-pronged strategy to strengthen the EU’s standardization capabilities for the digital single market:

• Focusing standardization efforts on priority digital technology areas such as 5G communications, cloud computing, IoT, big data, and cybersecurity. This is intended to align standards development with the EU’s strategic interests in realizing the digital single market and accelerating progress in key digitalization domains.
• Enhancing the efficiency and responsiveness of the EU standardization system itself. This involves better planning of standards, improved collaboration between standards bodies in Europe and internationally, and stronger linkages between research and standards development [93].

At the same time, the briefing highlights several challenges that the EU must navigate in the context of digitalization and standards. These include keeping pace with the rapid technological changes, addressing fragmentation and proprietary solutions, and ensuring standards account for user rights, safety considerations, and the implications for the future of work [93].

To support these efforts, the EU’s 2021–2027 program for the single market and competitiveness specifically includes funding to strengthen European standardization as a key enabler of the digital transformation [93]. This suggests a concerted policy focus on leveraging standards to unlock the growth potential of the EU’s digital single market.

6. Practical Solutions for Business Resilience in the Digital Transformation Era

6.1. Enhancing Business Resilience through Marketing Capabilities

As businesses navigate the challenges and uncertainties of the digital transformation era, the development and strategic deployment of marketing capabilities have emerged as a crucial factor in enhancing organizational resilience. Research has highlighted the potential for marketing capabilities to help small businesses and startups adapt, respond, and thrive in the face of disruptive market changes and technological advancements.

One of the key aspects of leveraging marketing capabilities for enhanced business resilience is the ability to better understand and anticipate customer needs and preferences. In the digital age, where customer behavior and expectations are rapidly evolving, firms that can effectively harness marketing insights and data analytics can gain a competitive edge [104,105]. By closely monitoring customer trends, proactively identifying emerging needs, and tailoring their offerings accordingly, organizations can position themselves to be more responsive and adaptive to market shifts.

The adoption of digital marketing strategies and tools, such as social media, search engine optimization, and e-commerce platforms, has been particularly transformative in enabling small businesses and startups to enhance their resilience [106,107]. These digital marketing capabilities can help firms overcome traditional resource constraints, expand their customer reach, and engage more effectively with their target audiences, even in the face of disruptions.

For example, studies have shown that the strategic use of social media platforms can allow small businesses to build stronger customer relationships, gather real-time market intelligence, and quickly pivot their marketing activities in response to changing circumstances [108]. Similarly, the integration of e-commerce capabilities can enable firms to maintain business continuity, diversify their revenue streams, and reach new customer segments, even during periods of physical disruption, such as the COVID-19 pandemic [109].

Moreover, the development of innovative marketing capabilities, such as the use of augmented reality, virtual reality, and personalized digital experiences, can help small businesses and startups differentiate themselves, enhance customer engagement, and create new revenue streams [110,111,112]. By leveraging these emerging marketing technologies, firms can not only strengthen their competitive position but also build resilience through the creation of unique, hard-to-replicate customer value propositions.

In addition to digital marketing capabilities, research has also highlighted the importance of cultivating marketing agility and adaptability as a means of enhancing business resilience. This involves the ability to quickly sense and respond to changing market conditions, customer preferences, and competitive dynamics through the rapid development and deployment of marketing strategies and tactics [35,113].

Agile marketing approaches, such as the use of iterative planning, real-time feedback loops, and cross-functional collaboration, can enable small businesses and startups to experiment, learn, and pivot their marketing initiatives in a more nimble and responsive manner [114]. This agility can be particularly crucial in times of uncertainty, as it allows firms to quickly adjust their marketing activities, reallocate resources, and seize emerging opportunities.

Furthermore, the integration of marketing capabilities with other organizational functions, such as product development, operations, and customer service, can contribute to the development of a more holistic and resilient business model [64]. By aligning marketing strategies with broader organizational capabilities and resources, firms can create a more cohesive and adaptive value proposition that can better withstand disruptions.

For example, the incorporation of customer insights and feedback into the product development process can help small businesses and startups create offerings that are more closely aligned with evolving market needs, thereby enhancing their resilience and competitiveness [115,116]. Similarly, the integration of marketing and supply chain functions can enable firms to better anticipate and respond to fluctuations in demand, ensuring the continuous availability of products and services.

In the context of small businesses and startups, the development of marketing capabilities can also play a crucial role in enhancing their ability to access and leverage external resources and partnerships. By effectively communicating their value proposition, building strong brand recognition, and establishing collaborative networks, these organizations can attract investment, secure strategic alliances, and tap into new markets and distribution channels.

This access to external resources and partnerships can, in turn, bolster the firm’s resilience by providing additional sources of support, knowledge, and capabilities during times of disruption. Furthermore, the collaborative nature of these relationships can foster the co-creation of innovative marketing solutions and the sharing of best practices, further enhancing the firm’s adaptive capacity.

To effectively leverage marketing capabilities for enhanced business resilience, small businesses and startups must adopt a strategic and integrated approach. This involves aligning marketing initiatives with the organization’s overall digital transformation strategy, ensuring the development of the necessary digital skills and technological infrastructure, and fostering a culture of innovation, experimentation, and continuous learning.

Additionally, the provision of targeted support, training, and resources from policymakers, industry associations, and entrepreneurial support networks can play a crucial role in empowering small businesses and startups to develop and deploy their marketing capabilities effectively, particularly in the face of disruptive challenges.

By prioritizing the strategic development and integration of marketing capabilities, small businesses and startups can enhance their ability to anticipate, adapt, and respond to the dynamic and uncertain challenges of the digital transformation era. This, in turn, can contribute to their long-term resilience, competitiveness, and success in navigating the increasingly complex and rapidly evolving business landscape.

6.2. Leveraging Digital Transformation for Small Businesses and Startups

The digital transformation of businesses has presented both opportunities and challenges for small businesses and startups. On the one hand, the adoption of digital technologies can enable these organizations to overcome traditional resource constraints, enhance their operational efficiency, and compete more effectively in the marketplace [117]. On the other hand, the rapid pace of technological change and the need to develop new digital capabilities can pose significant barriers for small businesses and startups, which often have limited resources and expertise.

To effectively leverage digital transformation, small businesses and startups must adopt a strategic and holistic approach that aligns their digital initiatives with their broader business objectives and organizational capabilities. This requires a deep understanding of the available digital technologies, the specific needs and challenges of their target market, and the development of a roadmap for digital implementation that is tailored to their unique circumstances [12].

One key aspect of leveraging digital transformation for small businesses and startups is the strategic deployment of digital marketing and e-commerce capabilities. As discussed in the previous section, the adoption of digital marketing tools, such as social media, search engine optimization, and online advertising, can enable these organizations to enhance their brand visibility, reach new customer segments, and engage more effectively with their target audiences [5].

Similarly, the integration of e-commerce platforms can allow small businesses and startups to expand their sales channels, diversify their revenue streams, and improve their operational efficiency. By leveraging the reach and scalability of digital channels, these organizations can overcome geographic barriers and compete on a more level playing field with larger competitors [42].

However, the successful implementation of digital marketing and e-commerce strategies requires the development of specialized digital skills and knowledge within the organization. Small businesses and startups must invest in the training and upskilling of their employees, ensuring that they have the necessary competencies to effectively utilize and manage digital tools and platforms [118,119].

In addition to digital marketing and e-commerce, small businesses and startups can also leverage other emerging digital technologies to enhance their operational resilience and adaptability. For instance, the integration of cloud computing, data analytics, and automation can help these organizations streamline their internal processes, improve decision-making, and reduce their reliance on physical infrastructure [48].

Furthermore, the adoption of technologies such as the Internet of Things (IoT), blockchain, and artificial intelligence can enable small businesses and startups to improve the transparency and traceability of their supply chains, optimize resource utilization, and develop innovative product and service offerings. By leveraging these digital capabilities, small businesses and startups can enhance their resilience, sustainability, and competitiveness in the face of market disruptions [118].

However, the successful integration of these digital technologies often requires significant investments in infrastructure, training, and organizational change management. Small businesses and startups may face challenges in accessing the necessary financial resources, technical expertise, and support systems to implement these transformative initiatives effectively [5].

To address these challenges, policymakers, industry associations, and entrepreneurial support networks can play a crucial role in providing targeted assistance and guidance to small businesses and startups. This may include the development of digital transformation programs, the facilitation of access to funding and financing options, and the creation of collaborative platforms for knowledge sharing and best practice exchange [5].

Furthermore, the establishment of digital innovation hubs, incubators, and accelerators can help small businesses and startups gain access to the necessary resources, mentorship, and networking opportunities to accelerate their digital transformation journey. These support structures can also foster the development of collaborative ecosystems, where small businesses and startups can leverage the expertise and resources of larger organizations, research institutions, and technology providers [120].

In parallel, small businesses and startups must also cultivate a culture of innovation, adaptability, and continuous learning to effectively navigate the digital transformation landscape. This may involve the adoption of agile work practices, the empowerment of employees to experiment and take calculated risks, and the institutionalization of feedback loops and knowledge-sharing mechanisms.

By fostering this innovative and adaptive mindset, small businesses and startups can enhance their ability to anticipate and respond to emerging digital trends, quickly pivot their business models, and seize new opportunities as they arise. This, in turn, can contribute to their long-term resilience and success in the digital age [120].

Overall, the effective leveraging of digital transformation for small businesses and startups requires a multifaceted approach that combines strategic planning, targeted support, and the development of organizational capabilities. By strategically integrating digital technologies, cultivating digital skills, and fostering a culture of innovation and adaptability, these organizations can enhance their competitiveness, unlock new growth opportunities, and strengthen their resilience in the face of a rapidly evolving business landscape [55].

6.3. Strategies for Developing Organizational Capabilities and Dynamic Skills

As small businesses and startups navigate the challenges and opportunities presented by digital transformation, the development of robust organizational capabilities and dynamic skills has emerged as a critical success factor. In order to enhance their resilience and competitiveness in the digital age, these organizations must focus on building a range of capabilities that can enable them to adapt, innovate, and thrive in the face of rapid technological and market changes [121].

One of the key organizational capabilities that small businesses and startups must cultivate is ambidexterity—the ability to simultaneously explore new opportunities and exploit existing strengths. In the context of digital transformation, ambidextrous organizations are better equipped to balance incremental improvements to their current operations with the development of disruptive, innovative business models and solutions [122].

Strategies for developing organizational ambidexterity may include the implementation of dedicated innovation teams or “skunkworks” that operate with a high degree of autonomy and freedom to experiment, coupled with the institutionalization of structured processes for knowledge sharing and the integration of innovative ideas into the core business [123].

Small businesses and startups can also leverage the strategic deployment of digital technologies to enhance their ambidextrous capabilities. For example, the use of cloud-based collaboration tools, virtual workspaces, and agile project management methodologies can enable remote teams to quickly ideate, prototype, and scale new digital products and services, while simultaneously maintaining the efficiency of their existing operations [70].

In addition to ambidexterity, the development of organizational resilience is another critical capability that small businesses and startups must focus on. Resilience, the ability to anticipate, adapt, and recover from disruptive events, is crucial for navigating the uncertainties and complexities of the digital transformation landscape [123].

Strategies for building organizational resilience may include the cultivation of slack resources, the establishment of flexible and adaptable business processes, and the fostering of collaborative networks and partnerships [70]. By developing these organizational capabilities, small businesses and startups can enhance their capacity to withstand and recover from unexpected shocks, such as market disruptions, supply chain interruptions, or global crises.

Furthermore, the development of dynamic skills within the organization is essential for supporting the effective implementation of digital transformation initiatives and the ongoing adaptation to changing market conditions. These dynamic skills include, but are not limited to, digital literacy, data analytics, customer-centricity, and cross-functional collaboration [121].

Strategies for developing dynamic skills may involve the implementation of comprehensive training and upskilling programs, the recruitment of specialized talent, and the creation of knowledge-sharing platforms that facilitate the exchange of expertise and best practices across the organization [124]. Small businesses and startups may also consider partnering with educational institutions, industry associations, or digital transformation service providers to leverage external resources and expertise in skill development [125].

In addition to building individual-level skills, small businesses and startups must also focus on cultivating organizational-level capabilities for effective knowledge management. This includes the development of systems, processes, and cultural norms that enable the capture, storage, and dissemination of critical digital knowledge within the organization [57].

Strategies for enhancing knowledge management capabilities may include the implementation of cloud-based document management systems, the establishment of cross-functional communities of practice, and the integration of knowledge-sharing activities into the organization’s performance management and talent development processes. By effectively managing their digital knowledge assets, small businesses and startups can enhance their ability to learn, adapt, and innovate in the face of changing market conditions [79].

To support the development of these organizational capabilities and dynamic skills, small businesses and startups may also benefit from engaging with external support systems and collaborative networks. This may include partnerships with larger organizations, participation in accelerator or incubator programs, and collaboration with research institutions or technology providers [1,124].

These collaborative arrangements can provide access to specialized expertise, resources, and technologies, as well as opportunities for knowledge exchange and joint innovation. By leveraging these external support systems, small businesses and startups can accelerate the development of their organizational capabilities and dynamic skills, ultimately enhancing their resilience and competitiveness in the digital age [51,79].

In summary, the development of organizational capabilities and dynamic skills is a critical component of successful digital transformation for small businesses and startups. By developing ambidexterity, resilience, and specialized digital skills, these organizations can improve their capacity to foresee and react to market fluctuations, capitalize on emerging opportunities, and sustain a competitive advantage in the swiftly changing business environment.

6.4. Collaborative Approaches and Digital Ecosystems

As small businesses and startups navigate the challenges of digital transformation, the importance of collaborative approaches and the development of digital ecosystems has emerged as a key strategy for enhancing resilience and competitiveness [126].

Collaboration and the formation of strategic partnerships can provide small businesses and startups with access to a wider range of resources, capabilities, and knowledge that may be beyond their individual reach. This can be particularly beneficial in the context of digital transformation, where the pace of technological change and the breadth of required expertise can be daunting for smaller organizations [127].

One key collaborative approach that has gained traction is the formation of digital ecosystems. Digital ecosystems refer to the interconnected networks of organizations, institutions, and individuals that work together to create, deliver, and capture value through the integration of digital technologies [128].

In the context of small businesses and startups, participation in digital ecosystems can offer several benefits:

• Access to complementary capabilities and resources: by collaborating with larger organizations, technology providers, research institutions, and other ecosystem partners, small businesses and startups can gain access to specialized expertise, infrastructure, and resources that can help them accelerate their digital transformation efforts.
• Shared risk and reward: digital ecosystems often facilitate the co-creation and sharing of innovative solutions, allowing small businesses and startups to distribute the risks and investments associated with digital initiatives across multiple stakeholders.
• Enhanced resilience and adaptability: the collaborative and interconnected nature of digital ecosystems can enhance the overall resilience of the network, as members can leverage each other’s strengths and work together to address disruptions or market changes.
• Improved access to markets and customers: participation in digital ecosystems can provide small businesses and startups with increased visibility, credibility, and access to new customer segments, both domestically and globally.

To effectively leverage digital ecosystems, small businesses and startups must focus on developing the necessary capabilities to engage with and contribute to these collaborative networks. This may involve building skills in areas such as digital platform integration, data sharing and management, and cross-organizational collaboration [129].

Furthermore, small businesses and startups may need to explore new business models and revenue streams that are aligned with the dynamics of digital ecosystems, such as platform-based models, subscription services, or data-driven offerings.

In addition to digital ecosystems, small businesses and startups can also benefit from collaborating with other external partners, such as academic institutions, industry associations, and government agencies. These partnerships can provide access to specialized knowledge, research, and support programs that can help small businesses and startups navigate the complexities of digital transformation [130].

For example, collaborations with academic institutions can enable small businesses and startups to leverage the latest research and development in emerging digital technologies, as well as gain access to a pool of talented graduates and researchers who can contribute to their digital transformation efforts [131].

Similarly, partnerships with industry associations and government agencies can provide small businesses and startups with valuable resources, such as training programs, funding opportunities, and policy support, which can help them overcome some of the barriers they face in adopting and implementing digital technologies [132].

To foster these collaborative approaches and digital ecosystems, small businesses and startups must be proactive in identifying potential partners, building trust-based relationships, and actively participating in the co-creation and sharing of value. This may involve the development of formal partnership agreements, the establishment of joint innovation initiatives, and the investment in shared infrastructure and platforms [133].

Furthermore, policymakers and industry support organizations can play a crucial role in facilitating the development of collaborative networks and digital ecosystems by providing the necessary regulatory frameworks, incentives, and support mechanisms. This can include the creation of innovation hubs, the facilitation of matchmaking events, and the development of collaborative funding programs that enable small businesses and startups to engage with a wider range of ecosystem partners [134].

By embracing collaborative approaches and actively participating in digital ecosystems, small businesses and startups can enhance their access to resources, knowledge, and market opportunities, ultimately strengthening their resilience and competitiveness in the face of digital transformation challenges.

6.5. Evaluating In-House Digitalization versus Outsourcing

When deciding between developing digital capabilities in-house or outsourcing, organizations are faced with a critical decision that can have significant implications for their competitiveness, efficiency, and long-term success. To navigate this complex choice, a structured decision-making approach can be employed to carefully evaluate the various factors at play (see Figure 9).

One such method is a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, which can help organizations assess their internal capabilities and external market conditions. By thoroughly examining the organization’s own strengths and weaknesses, as well as the opportunities and threats presented by the broader business environment, decision-makers can gain valuable insights to inform their choice [135,136].

In addition to SWOT analysis, comprehensive cost–benefit analysis can provide a crucial financial perspective on the decision. This involves a detailed examination of the various cost elements associated with in-house digitalization versus outsourcing, as well as the potential benefits and returns that each option may generate [135].

When evaluating these two pathways, there are several key parameters and indicators that organizations should consider, including the following:

Core Competencies: Assessing whether digitalization aligns with the organization’s core competencies is crucial. This involves determining whether the in-house team possesses the necessary skills and expertise to effectively drive digital transformation, or if external expertise would be more suitable.

Cost: A thorough comparison of the costs associated with developing digital capabilities in-house versus outsourcing is essential. This should encompass not only short-term expenses but also consider long-term implications, such as the costs of training, hiring, and sustaining the required technological investments.

Quality: Evaluating the potential impact on product or service quality is paramount. Organizations must carefully assess whether in-house digitalization or outsourcing would better maintain or enhance the quality standards that are fundamental to their offerings.

Control: The level of control and oversight that the organization wishes to maintain over digital processes is a significant factor. In-house operations typically offer greater control, while outsourcing may involve ceding some level of control to the external provider.

Scalability and Flexibility: Determining the organization’s ability to scale up or down its digital capabilities in response to fluctuating demand is crucial. Outsourcing may provide more flexibility in adjusting resource levels as needed, while in-house operations may face greater constraints.

Speed to Market: Assessing the time-to-market for implementing digitalization is an important consideration. Outsourcing may enable faster implementation due to the specialized expertise and resources of the service provider.

Risk Management: Evaluating the risks associated with in-house digitalization, such as technological obsolescence, is essential. Outsourcing can help mitigate certain risks by leveraging the provider’s expertise and resources.

Innovation: Analyzing the potential for innovation in-house versus through an outsourcing partner is crucial. Outsourcing may provide access to more innovative technologies, practices, and industry insights.

Data Security and Privacy: The implications for data security and privacy must be carefully considered, as in-house operations may offer better control and oversight over sensitive information.

Customer Experience: The impact on the customer experience is a critical factor, as organizations must ensure that any digitalization efforts enhance, rather than detract from, the overall customer journey.

Long-term Strategic Goals: Aligning the decision with the organization’s long-term strategic objectives is paramount, as the choice between in-house digitalization and outsourcing should support the organization’s broader vision and growth plans.

By thoroughly evaluating these parameters and indicators, organizations can develop a comprehensive understanding of the trade-offs and make a more informed decision that best aligns with their specific needs, resources, and risk tolerance. It is important to note that this decision-making process should be iterative, as both internal capabilities and external market conditions can evolve over time, necessitating regular reviews and adjustments to the chosen approach.

7. Roadmap for Digitalization of SMEs and Startups

As small and medium-sized enterprises (SMEs) and startups navigate the challenges and opportunities presented by the digital transformation era, the need for a comprehensive, practical roadmap to guide their digitalization efforts has become increasingly critical. This roadmap must address the unique constraints, capabilities, and growth trajectories of these organizations, empowering them to leverage digital technologies and build long-term resilience (see Figure 10).

The proposed roadmap outlines a structured, multi-phased approach that SMEs and startups can adopt to digitalize their operations, enhance their competitiveness, and strengthen their ability to withstand and adapt to market disruptions efficiently and effectively.

7.1. Phase 1: Assess and Strategize

Phase 1 of the roadmap is dedicated to assessing the organization’s current digital maturity and formulating a strategic plan for digitalization.

Firstly, the Digital Maturity Assessment involves a comprehensive evaluation of the organization’s existing digital capabilities, infrastructure, and processes across various functional areas such as operations, finance, marketing, and customer service. This assessment uses recognized digital maturity models like the IMPULS Industrie 4.0 Readiness Model or the European Commission’s Digital Transformation Scoreboard to benchmark the organization’s current state and identify areas for improvement. Employee engagement at all levels is essential to gather insights into digital adoption, skills, mindsets, and the challenges faced. Analyzing the competitive landscape, market trends, and customer expectations helps understand external digital drivers and their implications.

Strategic planning is a key component of Phase 1, aligning digitalization efforts with the organization’s overarching business objectives, growth strategies, and long-term vision. Clear, measurable goals and key performance indicators (KPIs) are established to guide the digital transformation, focusing on improving operational efficiency, enhancing customer experience, or diversifying revenue streams. Digital initiatives are prioritized based on potential impact, feasibility, and alignment with strategic priorities. A comprehensive roadmap outlines the phased implementation of prioritized digital initiatives, including timelines, resource requirements, and key milestones. Buy-in and commitment from the organization’s leadership team are secured to ensure active sponsorship and involvement throughout the digitalization process.

Organizational Readiness Assessment evaluates the organization’s current structure, culture, and change management capabilities to identify barriers or enablers for successful digital transformation. Existing digital skills and competencies are assessed to identify critical skill gaps that need to be addressed. Financial resources and investment capacity for digitalization initiatives, including potential funding sources, are analyzed. Any regulatory, legal, or compliance requirements impacting digital initiatives are identified and aligned with organizational considerations.

Completing this assessment and strategic planning phase enables SMEs and startups to establish a solid foundation for digitalization efforts, ensuring subsequent initiatives are aligned with overall business goals and the organization is prepared to manage change and challenges effectively. This groundwork is essential for successful digital transformation and sets the stage for subsequent phases of the roadmap.

7.2. Phase 2: Prioritize and Pilot

In Phase 2 of the roadmap, SMEs and startups prioritize digital initiatives identified during strategic planning and implement pilot projects to validate feasibility and impact.

Digital Initiative Prioritization begins with a comprehensive cost–benefit analysis for each initiative, considering ROI, implementation costs, and resource requirements. Organizational readiness and necessary skills, infrastructure, and support systems are assessed for each initiative. A prioritization matrix is developed, weighing initiatives based on strategic alignment, potential impact, feasibility, and organizational readiness. Cross-functional teams validate prioritization, gathering insights for decision-making.

Pilot Project Implementation focuses on selecting high-priority digital initiatives and designing pilot projects to test feasibility, scalability, and impact within the organization. Clear objectives, success metrics, and timelines are established, aligned with overall strategic goals. Dedicated, cross-functional teams lead pilot project implementation, fostering collaboration and knowledge-sharing. Robust change management practices, including communication, training, and resistance management, facilitate successful adoption. Continuous monitoring, user feedback collection, and implementation adjustments optimize outcomes.

Pilot Project Evaluation and Scaling involves a comprehensive evaluation of pilot project results, analyzing outcomes, lessons learned, and challenges encountered. Key stakeholders, including employees, customers, and external partners, provide perspectives on impact and improvement areas. The feasibility of scaling successful pilot projects across the organization is determined, considering resources, infrastructure, and change management requirements. A scaling plan outlines phased rollout, integration with existing systems, and resource allocation to support scaling efforts.

By prioritizing and implementing successful pilot projects, SMEs and startups gain insights, build buy-in, and establish a solid foundation for broader digitalization efforts. This phase mitigates risks associated with digital transformation by validating initiative feasibility and impact before organization-wide scaling.

7.3. Phase 3: Build Digital Capabilities

The third phase of the roadmap emphasizes the development of essential digital capabilities, both at the individual and organizational levels, to support the successful implementation and sustained adoption of digitalization initiatives.

Digital skill development is prioritized through a comprehensive assessment of required digital skills and competencies, considering both technical and non-technical aspects. Identified skill gaps within the existing workforce are addressed through targeted training and upskilling programs. Collaboration with educational institutions, industry associations, or digital transformation service providers leverages external expertise and resources for employee development. Job rotation, shadowing, and cross-functional collaboration opportunities are implemented to foster digital skill development and knowledge-sharing across the organization, promoting a culture of continuous learning and professional growth.

Organizational Capability Building involves assessing existing capabilities in critical areas such as data management, process automation, digital marketing, and customer experience to identify improvement opportunities. Digital infrastructures are developed or enhanced, including cloud-based systems, enterprise software, and connectivity solutions, to support digital transformation initiatives effectively. Robust data management and analytics capabilities enable data-driven decision-making, predictive insights, and business process optimization. A culture of innovation, experimentation, and agility is fostered, empowering employees to explore new digital solutions and adapt to evolving market conditions. Cross-functional teams and collaborative platforms facilitate knowledge-sharing, best practices, and lessons learned across the organization.

Digital leadership development focuses on identifying and nurturing digital leaders within the organization to champion digitalization efforts and inspire workforce transformation. Targeted training and coaching equip existing leaders with the necessary skills and mindsets for leading digital transformation, such as strategic foresight, change management, and digital innovation. Digital leadership competencies are integrated into talent management and succession planning processes to ensure a steady pipeline of future digital leaders. Distributed leadership models empower digital expertise and decision-making at various levels of the organization, fostering a culture of digital-first thinking where leaders actively seek and champion new digital initiatives for driving business value and competitive advantage.

By investing in digital skills, organizational capabilities, and digital leadership development, SMEs and startups establish a strong foundation for implementing and sustaining digitalization initiatives. This phase ensures that the organization possesses the necessary resources, mindsets, and support systems to effectively navigate the digital transformation journey, fostering innovation, growth, and long-term success.

7.4. Phase 4: Implement and Optimize

In the fourth phase of the roadmap, SMEs and startups focus on implementing and optimizing their digitalization initiatives, leveraging the capabilities and insights developed in previous phases.

Phased implementation involves developing a detailed plan outlining timelines, resource requirements, and key milestones for digital initiatives. Clear communication channels and change management strategies ensure effective engagement and buy-in from employees throughout the process. Initiatives are implemented in phases, allowing for incremental deployment and the incorporation of feedback and lessons learned. Dedicated implementation teams oversee execution and manage interdependencies or cross-functional dependencies, continuously monitoring progress, addressing challenges, and making necessary adjustments.

Integration and optimization ensure the seamless integration of new digital solutions with existing systems, processes, and workflows. Performance data and user feedback are analyzed to identify opportunities for optimization, such as improving user experience or enhancing process efficiency. Agile, iterative approaches are employed to refine and enhance digital solutions in response to changing market conditions and evolving customer needs. Data analytics and process mining uncover insights to drive further optimization and process improvements, with feedback loops fostering ongoing innovation and adaptation within the organization.

Change Management and Adoption strategies are developed and implemented to facilitate the successful adoption of digital initiatives by employees, customers, and stakeholders. Ongoing training, support, and coaching ensure employees have the necessary skills and knowledge to utilize new digital solutions effectively. Continuous communication of benefits, progress, and learnings associated with digital transformation builds and sustains organizational buy-in. Successful digital initiatives are recognized and celebrated, fostering a culture of digital success, while resistance or concerns related to digital transformation are proactively addressed through open dialogue and targeted interventions.

Performance Monitoring and Optimization establish a comprehensive framework that aligns digital initiatives with overall business objectives and KPIs. Robust data collection and analytics track impact and effectiveness at operational and strategic levels. Regular performance reviews identify areas for improvement and inform necessary adjustments to digital solutions and implementation approaches. Engagement with customers, suppliers, and stakeholders gathers feedback and insights to inform ongoing optimization efforts. Continuous benchmarking against industry peers and best practices identifies opportunities for further enhancement.

By focusing on phased implementation, integration, change management, and performance monitoring, SMEs and startups ensure successful execution and sustained impact of digitalization initiatives. This phase enables adaptation and optimization of digital solutions in response to changing market conditions and evolving customer needs, enhancing long-term resilience and competitiveness.

7.5. Phase 5: Collaborate and Ecosystems

The final phase of the roadmap emphasizes the importance of collaboration and the development of digital ecosystems to further strengthen the organization’s digitalization efforts and resilience. Ecosystem engagement involves identifying and engaging with potential partners such as technology providers, industry associations, research institutions, and complementary businesses to explore collaboration opportunities and co-innovation. This includes assessing partners’ capabilities, resources, and value propositions to evaluate their contribution to digital transformation initiatives. Establishing formal or informal collaboration agreements like strategic partnerships, joint ventures, or technology licensing arrangements aligns with the organization’s digital transformation goals. Participation in industry-wide digital platforms, marketplaces, or consortiums provides access to a wider range of digital solutions, shared resources, and collaborative opportunities. Continuously monitoring the evolving digital landscape helps identify new potential ecosystem partners that can assist in adapting to changing market conditions and unlocking growth opportunities.

Knowledge-sharing and co-innovation involve actively engaging with ecosystem partners to exchange knowledge, best practices, and lessons learned related to digitalization efforts. Collaborating on the co-development of innovative digital solutions, products, or services that leverage partners’ complementary capabilities and resources enhances the ecosystem’s effectiveness. Participation in joint research and development initiatives, hackathons, or pilot projects facilitates the exploration and validation of new digital concepts and technologies. Facilitating the exchange of talent, skills, and expertise among ecosystem partners enables cross-pollination of digital knowledge and the development of a shared talent pool. Establishing dedicated forums, platforms, or events fosters continuous learning, idea-sharing, and problem-solving within the digital ecosystem.

Regulatory and policy engagement involve monitoring the evolving regulatory landscape and engaging with policymakers, industry bodies, and standards organizations to ensure compliance and alignment of digital initiatives with relevant regulations and guidelines. Advocating for the development of policies, incentives, and support mechanisms helps SMEs and startups overcome barriers to digital transformation and enhances competitiveness. Contributing to industry-wide standards, frameworks, or best practices promotes interoperability, data sharing, and overall maturity of the digital ecosystem. Leveraging the collective voice and influence of the digital ecosystem shapes the regulatory environment to foster innovation, entrepreneurship, and growth. Collaboration with policymakers and regulatory authorities to pilot and validate new digital solutions or business models leverages supportive frameworks like regulatory sandboxes.

Resilience and risk management involve assessing risks and vulnerabilities associated with the digital ecosystem, including cybersecurity threats, supply chain disruptions, and regulatory changes. Implementing robust risk management strategies like diversifying supplier networks, data backup, and recovery systems and enhancing cybersecurity measures strengthens the overall resilience of the digital ecosystem. Establishing clear communication and coordination protocols among ecosystem partners ensures a coordinated response to disruptive events or crises. Leveraging collective resources, expertise, and adaptability of the digital ecosystem enables the quick identification and implementation of solutions to address emerging challenges or disruptions. Continuously monitoring and assessing the evolving risk landscape allows adjustments to digital ecosystem strategies and risk management practices accordingly.

By actively engaging with digital ecosystems, SMEs and startups access a wider range of resources, capabilities, and collaborative opportunities to accelerate digitalization efforts and strengthen long-term resilience. This phase also emphasizes the importance of regulatory engagement and risk management to ensure digital transformation initiatives align with industry landscape and regulatory environment evolution.

7.6. Final Thoughts

The proposed roadmap provides a comprehensive, practical framework for SMEs and startups to efficiently navigate the digital transformation journey and build long-term resilience. By addressing the key phases of assessment, strategic planning, capability building, implementation, and ecosystem engagement, this roadmap empowers these organizations to leverage digital technologies, develop robust organizational capabilities, and collaborate with a broader network of partners to thrive in the digital age.

The successful implementation of this roadmap requires a dedicated, cross-functional effort within the organization, with the active involvement and support of leadership, the IT department, functional teams, and frontline employees. Additionally, engagement and collaboration with external stakeholders, such as industry associations, technology providers, and policymakers, can further enhance the effectiveness and impact of digitalization initiatives.

As SMEs and startups continue to face the challenges and opportunities presented by the digital transformation era, the adoption of this comprehensive roadmap can serve as a powerful tool to help these organizations efficiently digitalize their operations, enhance their competitiveness, and build the resilience necessary to navigate an increasingly complex and rapidly evolving business landscape.

8. Research Proposal Initiative

Continuing this study, we will delve into the research questions outlined to comprehensively understand the impact of digitalization on SME startups. Our investigation will focus on how digitalization influences these startups and the key digital technologies driving transformative changes within this sector. Furthermore, we will examine the specific challenges that SME startups encounter in adopting digital technologies and explore effective strategies for integrating digital tools into their operations. Additionally, this study aims to uncover how digitalization contributes to enhancing the resilience of SME startups and identify critical organizational capabilities required for their success in the digital age (see Figure 11).

To achieve these research objectives, we will employ a mixed-methods approach, combining both qualitative and quantitative techniques. This will involve conducting surveys among SME startup founders and managers to gather quantitative data on digitalization impacts, challenges in technology adoption, and factors related to resilience. In-depth interviews with SME stakeholders will provide qualitative insights into integration strategies, organizational capabilities, and real-world experiences with digitalization. Concurrently, a comprehensive literature review will be conducted to supplement empirical findings and establish a solid research framework.

The expected outcomes of this research include a detailed analysis of how digitalization shapes SME startup operations, growth trajectories, and resilience. We aim to identify specific digital technologies that play pivotal roles in transforming SMEs and offer insights into the challenges hindering the effective adoption and integration of digital tools. Ultimately, the study will generate practical recommendations for policymakers, business owners, and stakeholders to facilitate SME digital transformation and foster innovation in this critical sector of the economy.

Understanding the nuances of digitalization’s impact on SME startups is imperative for shaping informed policies, refining industry practices, and nurturing sustained growth within this dynamic business landscape. Through this research, we aspire to contribute valuable insights that will guide strategic decision-making and drive positive outcomes for SMEs in the digital era.

9. Conclusions

9.1. Summary of Key Research Trends and Gaps

This literature review has identified several key research trends and gaps in the context of digital transformation, business resilience, and the unique challenges faced by small businesses and startups.

Research Trends:

• The critical role of digital transformation in enhancing business operations, resilience, and overall performance.
• The leveraging of emerging digital technologies, such as blockchain, IoT, and AI, to improve supply chain management and enable circular economy practices.
• The significant potential of digital marketing and e-commerce strategies for SMEs to overcome traditional constraints and compete more effectively in the digital marketplace.
• The importance of organizational capabilities, such as ambidexterity and resilience, in navigating disruptions and maintaining competitiveness.
• The influence of digitalization on employee attitudes, skills, and job-related factors, underscoring the need for effective change management and talent development.
• The strategic importance of digital skills and knowledge management in supporting business operations and enhancing organizational resilience.
• The emergence of new business models and revenue streams driven by digital transformation.
• The growing focus on cyber risk management and the development of the cyber insurance market.
• The recognition of agility and adaptability as key strategic responses to market uncertainties.
• The interplay between digital technologies, innovation, and sustainability in driving business resilience and long-term success.

Research Gaps:

• Lack of understanding of the long-term implications of digital transformation on organizational structures and business models.
• Limited research on the dynamic interactions between digital capabilities, organizational resilience, and financial performance.
• Scarcity of studies exploring the role of digital leadership in driving successful digital transformation.
• Insufficient research on the societal and environmental impact of digital technologies.
• Underexplored linkages between digital maturity, knowledge management, and innovation in SMEs.
• Dearth of comparative studies analyzing digital transformation experiences across different industries and geographical contexts.
• Limited insights into the challenges and barriers faced by firms in adopting emerging digital technologies.
• Lack of research on the role of digital ecosystems and stakeholder collaboration in enhancing supply chain resilience.

9.2. Contributions of the Literature Review

This literature review enhances the existing body of knowledge by offering a thorough understanding of the diverse effects of digital transformation on small businesses and startups, particularly highlighting the crucial role of strengthening business resilience. The review synthesizes the key research trends and gaps, offering a structured framework for academics, policymakers, and practitioners to navigate the complex landscape of digital transformation.

By pinpointing the essential organizational capabilities, strategic approaches, and collaborative mechanisms that empower small businesses and startups to succeed in the digital era, this review can guide the creation of practical solutions and support systems to help these organizations overcome challenges and capitalize on the opportunities brought by digital transformation.

9.3. Limitations and Future Research Directions

While this literature review offers a robust synthesis of the current research, it is not without limitations. The review is based on a focused set of academic publications and regulatory standards; it may not capture the entire breadth of research in this rapidly evolving field. Additionally, the review is predominantly focused on the context of small businesses and startups, and the findings may not be directly generalizable to larger organizations.

The scope of the review can be expanded to incorporate a broader range of publications, including industry reports, policy documents, and practitioner-oriented literature. Comparative studies can be conducted to examine the digital transformation experiences and resilience-building strategies of small businesses and startups across different industries and geographical regions. The long-term organizational and financial impacts of digital transformation can be explored, including longitudinal studies that track the evolution of business models and performance metrics. The role of digital leadership and its influence on the successful implementation of digital transformation initiatives can be investigated. The societal and environmental implications of digital technologies and the development of sustainable digital transformation strategies can be addressed. The challenges and barriers faced by small businesses and startups in adopting emerging digital technologies can be examined, such as blockchain, AI, and IoT, and the strategies to overcome these barriers.

9.4. Final Remarks on the Importance of Enhancing Business Resilience in the Digital Age

In conclusion, this literature review underscores the critical importance of enhancing business resilience for small businesses and startups navigating the digital transformation landscape. The rapid pace of technological change, evolving customer expectations, and volatile market conditions have created a pressing need for these organizations to develop the necessary capabilities, strategies, and collaborative mechanisms to anticipate, adapt, and thrive in the face of disruptions.

By leveraging digital technologies, cultivating organizational ambidexterity and resilience, and fostering innovative and agile mindsets, small businesses and startups can not only survive but also seize the opportunities presented by digital transformation. This, in turn, can contribute to their long-term competitiveness, growth, and positive impact on the broader economic and social ecosystem.

As the digital transformation of businesses continues to accelerate, the need for a comprehensive understanding of the challenges and solutions faced by small businesses and startups has never been more critical. This literature review serves as a valuable resource for academics, policymakers, and practitioners, guiding them towards the development of effective strategies, support mechanisms, and policy interventions that can empower small businesses and startups to build resilience and thrive in the digital age.