Opportunities and threats of digital transformation of business models in SMEs

Abstract

The importance of business models for small and medium-sized enterprises (SMEs) in terms of their competitiveness and sustainability is undoubtedly growing. The global Covid-19 pandemic even strengthens this trend. The degree of digitalization of corporate processes becomes the SME stability and development limitation. The paper submitted presents the results of research focused on the issue of digital transformation of business models on a test sample of 496 SMEs (out of which 214 operate in the manufacturing sector and industry and 218 are included in the services sector) using the method of dimensionality reduction and logit regression. The main output from the solution valid for both tested sectors is considered insufficient setting, management and evaluation of corporate processes. This applies to the main value-creating processes (input and output logistics, production, marketing and sales, service and other ancillary services) and supporting processes (purchase, scientific and technological development, human resources management and company infrastructure). In terms of the achieved degree of process digitization, an imbalance was found between the main value-creating processes and supporting processes. Investment in value-creating and supporting corporate processes are not considered an important factor for any of the sectors due to the high sensitivity of investments to the size and specialization of companies. In contrast, the higher perceived need for value chain digitization in both tested sectors, especially in the case of manufacturing and industry, is considered a very positive output. This proves the need for the digital transformation of companies and its positive impact on their profitability and competitiveness.