Abstract
Purpose. This study aims to investigate the digital transformation (DT) of internationalizing SMEs from an evolutionary perspective, highlighting the factors that facilitate or impede this journey.
Design/methodology/approach. This study adopts a longitudinal single-case study methodology. Primary data were collected through semi-structured interviews with top management of an Italian internationalizing SME. To ensure comprehensive analysis, primary data was augmented by secondary sources, employing triangulation techniques. Subsequently, content analysis was carried out using Nvivo 14 software.
Findings. The study identifies the enabling and hindering factors of DT. The findings highlight the enabling role of digital dynamic capabilities to succeed in different DT stages. Adopting data-driven decision-making models is crucial to reduce environmental complexity and derive actionable insights to support business strategy. In addition, the findings reveal the evolution from an efficiency-centered to a differentiation-centered approach to achieve a more structured international positioning. Organizational inertia and cybersecurity risks represent the main hindering factors an SME must cope with in the initial and mature stages of DT. Ensuring effective knowledge management mechanisms is a prominent challenge throughout the DT journey.
Practical and social implications. The study is rich in theoretical and managerial implications. Theoretically, the study contributes to the evolutionary theory of DT of SMEs. From the managerial standpoint, this research offers valuable recommendations for managers to take advantage of positive factors and limit the ongoing downsides of the DT process.
Originality of the study. This study’s originality lies in adopting an evolutionary perspective to observe the DT of SMEs. The relevance and significance of this case study are further enriched by the dense and SME-concentrated Italian landscape.
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