Next Article in Journal
The Consequences of Indirect Taxation on Consumption in Nigeria
Previous Article in Journal
The Role of Natural and Human Resources on Economic Growth and Regional Development: With Discussion of Open Innovation Dynamics
Open AccessArticle

Identifying Digital Transformation Paths in the Business Model of SMEs during the COVID-19 Pandemic

Department of Management, Universitas Islam Indonesia, Yogyakarta 55283, Indonesia
*
Author to whom correspondence should be addressed.
J. Open Innov. Technol. Mark. Complex. 2020, 6(4), 104; https://doi.org/10.3390/joitmc6040104
Received: 10 September 2020 / Revised: 29 September 2020 / Accepted: 30 September 2020 / Published: 3 October 2020
The objective of this study was to analyze how small and medium enterprises (SMEs) cope with environmental changes due to the COVID-19 pandemic by pursuing the business model transformation with the support of digital technologies. To achieve the objective, this study used a multiple case study design with qualitative analysis to examine the data obtained from interviews, observation, and field visits. Seven manufacturing SMEs from Indonesia were selected using a theoretical sampling technique, with the purpose of achieving some degree of variation to allow us to undertake replication logic. Our analysis demonstrates that SMEs adopt a different degree of digital transformations, which can be summarized into three paths, depending on the firms’ contextual factors. First, SMEs with a high level of digital maturity who respond to the challenges by accelerating the transition toward digitalized firms; second, SMEs experiencing liquidity issues but a low level of digital maturity who decide to digitalize the sales function only; and, third, the SMEs that have very limited digital literacy but are supported by a high level of social capital. This last group of firms solves the challenges by finding partners who possess excellent digital capabilities. The qualitative case study method allows us to conduct in-depth and detailed analysis, but has thin generalizability. To address this limitation, future research can use a survey covering various industries to test the proposed theory that has resulted from this study, so that the generalizability can be assured. View Full-Text
Keywords: digital technology; business model innovation; digital transformation; dynamic capability; organizational agility; learning organization; open innovation digital technology; business model innovation; digital transformation; dynamic capability; organizational agility; learning organization; open innovation
Show Figures

Figure 1

MDPI and ACS Style

Priyono, A.; Moin, A.; Putri, V.N.A.O. Identifying Digital Transformation Paths in the Business Model of SMEs during the COVID-19 Pandemic. J. Open Innov. Technol. Mark. Complex. 2020, 6, 104.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop