# Towards Understanding Enablers of Digital Transformation in Small and Medium-Sized Enterprises

**Authors:** Sachithra Lokuge, Sophia Xiaoxia Duan  
**arXiv:** [2111.05989](https://arxiv.org/abs/2111.05989)  
**Date:** 2021-11-10  
**Summary page:** https://www.summarizepaper.com/en/paper/2111.05989v1/

## Key points

- SMEs have unique characteristics that distinguish them from larger firms, such as lack of technical expertise, poor infrastructure, inadequate capital, limited resources, and greater external uncertainty.
- There has been a limited number of studies investigating the digital transformation process in SMEs.
- The paper aims to identify key enablers that facilitate the digital transformation process in SMEs by conducting a comprehensive literature review in information systems, management, and business disciplines.
- The research methodology involved an extensive literature review using databases such as AIS Library, INFORM, ProQuest, Wiley, Emerald and EBSCOhost.
- The findings suggest that SMEs require specific enablers to support their digital transformation journey including leadership commitment to digital transformation; employee training and development; strategic alignment with business goals; customer-centric approach; technology infrastructure readiness; data-driven decision-making culture; collaboration with partners; government support policies; financial resources availability.
- This study contributes to filling a gap in knowledge about how SMEs can leverage digital technologies to enhance their competitiveness and sustainability.

## Summary

Small and medium-sized enterprises (SMEs) have unique characteristics that distinguish them from larger firms, such as lack of technical expertise, poor infrastructure, inadequate capital, limited resources, and greater external uncertainty. Despite the increasing popularity of digital transformation initiatives in businesses, there has been a limited number of studies investigating the digital transformation process in SMEs. Therefore, this paper aims to identify key enablers that facilitate the digital transformation process in SMEs by conducting a comprehensive literature review in information systems, management, and business disciplines. The research methodology involved an extensive literature review using databases such as AIS Library, INFORM, ProQuest, Wiley, Emerald and EBSCOhost. The initial search identified 93 papers which were then screened for relevance. From the remaining 46 articles analyzed in their entirety by two independent researchers who identified key themes emerging through the analysis. They discussed and refined relationships between enablers that were identified independently. The findings suggest that SMEs are more responsive, flexible and agile in response to digital disruption but require specific enablers to support their digital transformation journey. These include leadership commitment to digital transformation; employee training and development; strategic alignment with business goals; customer-centric approach; technology infrastructure readiness; data-driven decision-making culture; collaboration with partners; government support policies; financial resources availability. In conclusion, this paper provides a comprehensive understanding of the enablers of digital transformation in SMEs by synthesizing existing literature across different disciplines. Future research could explore how these enablers interact with each other or investigate how contextual factors influence their effectiveness. Limitations include the exclusion of non-English language publications or grey literature sources due to resource constraints. Nonetheless, this study contributes to filling a gap in knowledge about how SMEs can leverage digital technologies to enhance their competitiveness and sustainability.