Influence of Digital Transformation Strategies on Competitive Advantage of Small and Medium Enterprises (SMES) in Emerging Economies
DOI:
https://doi.org/10.47672/ijbs.2885Keywords:
Digital Transformation Strategies, Competitive Advantage, Emerging EconomiesAbstract
Purpose: The aim of the study was to assess the influence of digital transformation strategies on competitive advantage of small and medium enterprises (SMES) in emerging economies.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: The findings reveal that digital transformation strategies, such as the adoption of AI, cloud computing, and digital marketing, significantly enhance the competitive advantage of SMEs in emerging economies by improving operational efficiency and market reach. SMEs that embrace digital tools experience increased innovation capability, cost efficiency, and customer engagement. Overall, digital transformation helps SMEs expand their market share and maintain a competitive edge in dynamic business environments.
Implications to Theory, Practice and Policy: The resource-based view (RBV) theory, dynamic capabilities theory & the technology-organization-environment (TOE) may be used to anchor future studies on assessing the influence of digital transformation strategies on competitive advantage of small and medium enterprises (SMES) in emerging economies. SME owners and managers should invest in capacity building and digital skills development to ensure effective adoption and utilization of digital tools. From a policy perspective, governments and regulatory bodies in emerging economies should develop supportive frameworks that promote digital transformation among SMEs.
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