Digital Innovation and Business Model Transformation in Small- and Medium-Sized Enterprises

A special issue of Systems (ISSN 2079-8954). This special issue belongs to the section "Systems Practice in Social Science".

Deadline for manuscript submissions: 31 May 2025 | Viewed by 2841

Special Issue Editor


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Guest Editor
1. CISE—Electromechatronic Systems Research Centre, University of Beira Interior, 6201-001 Covilhã, Portugal
2. CIGEST—Centre for Research in Management, Lisbon Business School, 1000-002 Lisboa, Portugal
Interests: digital innovation; business model transformation; strategic management; technology-driven strategies; coopetition; service ecosystems; value co-creation; organizational resilience; sustainable growth and competitiveness

Special Issue Information

Dear Colleagues,

The rapid advancement of digital technologies has significantly transformed the business landscape, offering both opportunities and challenges for small- and medium-sized enterprises (SMEs). Digital innovation is no longer just a competitive advantage; it is a necessity for SMEs aiming to thrive in an increasingly digital economy. This Special Issue aims to explore the ways in which digital innovation drives business model transformation in SMEs, examining how new technologies, such as artificial intelligence, big data, cloud computing, and the Internet of Things (IoT), enable these companies to enhance their agility, efficiency, and value creation processes. By investigating various strategies, frameworks, and case studies, this Special Issue seeks to provide a comprehensive understanding of the impact of digital transformation on business models and offer insights into best practices for leveraging digital technologies to sustain growth and competitiveness in the SME sector.

The journal Systems aims to publish research that advances the understanding and application of systems theory, methodologies, and practices across various fields. The proposed Special Issue on "Digital Innovation and Business Model Transformation in Small- and Medium-Sized Enterprises" aligns well with this scope, as it addresses the systemic changes brought about by digital technologies in the business environment.

Digital innovation in SMEs involves complex interactions between technological, organizational, and environmental factors, making it a highly relevant topic for systems research. The transformation of business models requires a systems approach to understand the dynamics of digital integration, process optimization, and value co-creation. This Special Issue will explore the systemic effects of digital transformation on SMEs, including changes in organizational structures, decision-making processes, and external ecosystems.

By focusing on how SMEs can navigate the digital landscape through innovative business model adaptations, this Special Issue aims to contribute to the broader discussion of systems thinking, digital systems design, and adaptive strategies. It will provide insights into the interconnected nature of digital technologies and business processes, promoting a holistic view that is central to the field of systems research.

Dr. Agostinho Da Silva
Guest Editor

Manuscript Submission Information

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Keywords

  • digital transformation
  • business model innovation
  • small- and medium-sized enterprises (SMEs)
  • digital technologies
  • Industry 4.0
  • organizational agility
  • value creation
  • digital strategy
  • technology adoption
  • innovation management

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Published Papers (3 papers)

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Research

30 pages, 2851 KiB  
Article
Modernizing Small and Medium-Sized Enterprises: A Lean Audit Model for Digital Integration
by María Jesús Ávila-Gutiérrez, Antonio Córdoba-Roldán, Pablo Morato-Huerta and Juan Ramón Lama-Ruiz
Systems 2025, 13(4), 304; https://doi.org/10.3390/systems13040304 - 21 Apr 2025
Viewed by 282
Abstract
This study proposes an audit model to modernize artisanal manufacturing companies and facilitate their transition to Industry 4.0. Based on Lean Manufacturing, Lean Thinking, and Lean Management principles, the model enhances operational efficiency and competitiveness while considering the resource constraints of Small and [...] Read more.
This study proposes an audit model to modernize artisanal manufacturing companies and facilitate their transition to Industry 4.0. Based on Lean Manufacturing, Lean Thinking, and Lean Management principles, the model enhances operational efficiency and competitiveness while considering the resource constraints of Small and Medium-Sized Enterprises (SMEs). It provides a structured approach to identifying key improvement areas and guiding digital transformation. The research follows a four-phase methodology: (1) a company assessment questionnaire to diagnose the current state, (2) a method matrix to analyze improvement strategies, (3) a dimension map to structure key transformation areas, and (4) prioritization of improvement dimensions to define a tailored action plan. A case study in an SME validated its applicability. Findings show that the model helps identify critical improvement factors and implement targeted Lean interventions, enhancing Industry 4.0 readiness. It enables a progressive adoption of digital enablers while optimizing traditional manufacturing processes. The originality of this study lies in its integrated auditing framework, structured around four dimensions and twelve key factors. It introduces a 48-question assessment tool, methods matrices, and prioritization mechanisms. Additionally, it defines four strategic development stages—Readiness, Start-up, In-transition, and Advanced—providing a roadmap for continuous improvement in SMEs. Full article
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19 pages, 348 KiB  
Article
The Role of Digital Infrastructure and Skills in Enhancing Labor Productivity: Insights from Industry 4.0 in the European Union
by Ofelia Ema Aleca and Florin Mihai
Systems 2025, 13(2), 113; https://doi.org/10.3390/systems13020113 - 12 Feb 2025
Viewed by 1260
Abstract
The adoption of Industry 4.0 technologies supports the digital transformation of production processes, making them more efficient. This study examines how digital infrastructure, digital skills, and the use of cloud technologies influence labor productivity in European Union countries. Using econometric methods, including linear [...] Read more.
The adoption of Industry 4.0 technologies supports the digital transformation of production processes, making them more efficient. This study examines how digital infrastructure, digital skills, and the use of cloud technologies influence labor productivity in European Union countries. Using econometric methods, including linear regressions and fixed-effects panel regressions, the analysis highlights the important role digital skills play in boosting productivity. It also identifies the adoption of cloud solutions as a catalyst for process efficiency, while widespread high-speed internet coverage supports the connectivity of smart systems. However, variations in the development of digital infrastructure and workforce readiness across EU member states present challenges to overall labor productivity. The study concludes that strategic investments in automation and digital infrastructure, along with improving the workforce’s digital skills, are essential to making Industry 4.0 a key pillar of economic competitiveness. By examining how workforce digital skills and certain Industry 4.0 technologies affect labor productivity, this research adds valuable insights to the specialized literature. Full article
21 pages, 1173 KiB  
Article
Systemic Approaches to Coopetition: Technology and Service Integration in Dynamic Ecosystems Among SMEs
by Agostinho da Silva and Antonio J. Marques Cardoso
Systems 2025, 13(2), 97; https://doi.org/10.3390/systems13020097 - 5 Feb 2025
Viewed by 688
Abstract
In the globalized, technologically advanced landscape, coopetition—simultaneously cooperating and competing—has become a key strategy for innovation and enhanced value creation. This research focuses on the impact of technology-driven coopetition networks in the Portuguese ornamental stone sector, using a framework based on Service-Dominant Logic [...] Read more.
In the globalized, technologically advanced landscape, coopetition—simultaneously cooperating and competing—has become a key strategy for innovation and enhanced value creation. This research focuses on the impact of technology-driven coopetition networks in the Portuguese ornamental stone sector, using a framework based on Service-Dominant Logic (S-D Logic). It emphasizes the importance of resource integration, service exchange, and institutional arrangements in successful coopetition. Employing a two-phase experimental approach with selected small and medium enterprises (SMEs), this study assesses customer perceptions of product quality under traditional best practices versus those enabled by technology-driven coopetition networks. The results indicate a notable improvement in the customer-perceived quality and outcome consistency. The statistical analysis shows that these networks allow firms to better align with customer expectations, optimize resource allocation, and improve operational coordination. The findings highlight the strategic potential of coopetition networks, particularly when augmented by advanced technologies like IoT-based systems. These networks facilitate sustainable value co-creation and operational resilience by enabling firms to share expertise, distribute tasks, and synchronize efforts. This research contributes to the coopetition and S-D Logic literature by offering a practical framework for firms aiming to boost competitiveness and sustain growth in dynamic service ecosystems. Full article
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