A Systematic Review of Factors Influencing Digital Transformation of SMEs

Abstract

With the development of Information and communication technology in recent years, digital transformation and technology adoption have become crucial factors for small and medium business sustainability (SMEs). Though large multinational companies are well advanced in the early adoption of digital technologies, SMEs are relatively slow in adopting new technologies for various reasons. However, they are either in the early majority or in the late majority stage of the technology adoption life cycle. Such digital transformation of SMEs is significantly different from the large multinational enterprises due to various internal-external, micro-macro, and socio-economic factors. The researcher's view also broadly differs. Hence, understanding the factors influencing the SMEs' digital transformation is crucial in strategic decision making of digital companies, developing digital policies, and free trade agreements of International trade in services by Nations. Therefore, this study presents a systematic review of research conducted in the past 20 years and identifies the factors influencing SMEs' digital transformation. One hundred seventy-eight research articles published in academic databases of SCOPUS and Web of Science were identified and reviewed using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach. Managerial implications and further research directions in this domain were recommended from the research findings.