University|02-06-2026

Digitalization in SMEs

Our co-authored chapter „Decoding Digitalization: Insights from Small and Mid-Sized Enterprises“ (with Nicolás Bustillos Rivadeneira and Darius-Aurel Frank) has been published in the Routledge edited volume „Exploring Commercial, Social, and Digital Innovation from the Customer Perspective.“

Based on interviews with 124 SME executives in Germany, we unpack what “digitalization” means in practice, and where managers see the biggest upside and downside: process optimization and better connectivity on the one hand, and information, data, and cybersecurity risks on the other.

Abstract:

Digitalization is fundamental for SMEs aiming to enhance competitiveness and performance amid today’s rapidly evolving technological landscape. However, research on SME digitalization remains limited, with scarce theoretical frameworks and empirical studies. Employing an inductive approach, this study addresses this gap through qualitative content analysis (QCA) of interviews with 124 SME executives spanning diverse industries in Germany. The results show that SME managers’ major understandings of digitalization cover the conversion of analog into digital data, data processing, storage, and transfer, as well as process optimization. The respondents see process optimization and enhancements in communication and interconnection as the main opportunities of digitalization. By contrast, information, data, and cyber security risks are seen as the most pressing risks. SME managers mention big data and AI and enterprise application software as typical digital technologies.

Reference:

Bustillos Rivadeneira, N., Frank, D.-A., & Tiberius, V. (2026). Decoding digitalization: insights from small- and mid-sized enterprises. In: Kurtmollaiev, S. Lervik-Olsen, L., & Andreassen, T. W. (Eds.): Exploring commercial, social, and digital innovation from the customer perspective. London (Routledge), pp. 216-234, doi:10.4324/9781003492047.