Abstract

This study aims to identify and analyze factors determining the adoption of digital technologies in SMEs. Drawing on the technology–organization–environment framework, the study highlights enabling factors from three different contexts and hypothesizes their relationship with digital technology adoption. The data used were collected from 15 346 European Union and non-European Union SMEs to test an ordered logit regression model that highlights the factors associated with an increased level of digital technologies adoption in SMEs. The empirical results show that the technology context (IT infrastructure and digital tools) along with the existing level of innovation are the main drivers that act as stepping stones in digital technology adoption. Corporate regulation, available skills, and financial resources (as organizational variables) also play a significant role in the adoption decision. Unexpectedly, the influence of the environmental context is marginal. The implications of this study are emphasized for theory and practice, laying a foundation for further empirical studies in this field. Managerial relevance statement: This article reviews the empirical research on digital technologies adoption and examines the drivers of such adoption in SMEs. The factors identified provide guidance for practitioners adopting digital technologies in SMEs, by suggesting they assess the readiness of their firms before investing in digital technology. This research helps advance the conversation on digitalization drivers especially by bringing the discussion into the organization boundaries, as our findings highlight the predominance of organizational drivers over the technological and environmental ones. SMEs have to overcome the challenges associated with constructing an IT infrastructure capable of implementing new technologies. Indeed, while striving to adopt new digital technologies (e.g., AI, big data, IoT), many SMEs are still unprepared. Therefore, rather than adopting mimetic behaviors based on external pressure, SMEs that aim for digitalization should first assess their existing technologies, and further develop a meticulous technological roadmap that includes skills upgrades and investments in upskilling employees’ capabilities. Therefore, developing a fully integrated strategic approach is crucial before the adoption of digital technologies

Abstract

<jats:sec> <jats:title>Purpose</jats:title> <jats:p>Smart manufacturing promises operational efficiency and enhanced sustainability, yet SMEs frequently struggle to translate digital investments into tangible environmental outcomes. This study examines how organizational alignment, emergent socio-technical mechanisms and contextual factors influence the effectiveness of digital technologies in driving sustainability, with a focus on high-impact manufacturing sectors.</jats:p> </jats:sec> <jats:sec> <jats:title>Design/methodology/approach</jats:title> <jats:p>A qualitative multi-case research design was employed, drawing on in-depth semi-structured interviews with senior representatives from 16 manufacturing firms across diverse sectors and regions. Data were analyzed using thematic analysis in ATLAS.ti.</jats:p> </jats:sec> <jats:sec> <jats:title>Findings</jats:title> <jats:p>Digital technologies consistently improve operational efficiency, but their environmental impact is contingent on organizational alignment and socio-technical configuration. Governance maturity, digital accessibility, and sustainable agility emerged as key mediators, explaining why similar technologies produce divergent outcomes across firms. Sectoral and contextual differences further shape implementation trajectories, revealing that SMEs can achieve measurable sustainability gains through pilot-based, adaptive approaches even under resource constraints. The study highlights that sustainability outcomes are not an automatic by-product of technology adoption but require coordinated alignment of strategy, systems, culture and operational practices.</jats:p> </jats:sec> <jats:sec> <jats:title>Originality/value</jats:title> <jats:p>The research advances theory by extending the McKinsey 7S model into sustainability-driven digital contexts and integrating Lean and Agile practices into the concept of sustainable agility. It provides a novel socio-technical framework that explains how SMEs can convert digital adoption into measurable environmental outcomes, addressing gaps in literature dominated by analyses of large firms. By combining organizational, operational and contextual perspectives, the study offers both conceptual clarity and guidance for embedding sustainability into digital transformation initiatives in resource-constrained, high-impact manufacturing sectors.</jats:p> </jats:sec>

Abstract

<jats:p>This paper addresses the persistent failure of major digital investments to achieve sustained smart technology adoption in developing countries, limiting productivity and business growth. Although existing research identifies institutional weaknesses as a central barrier, it provides limited guidance on how progress can occur within such constraints. To address this gap, the Institutional Framework for Smart Technology Adoption (IFSTA), pronounced Eye-f-sta, is developed as a contingent institutional framework linking digital transformation theory with practical assessment tools. IFSTA argues that adoption success depends not on technology alone, but on strategic alignment with specific institutional contexts. The framework is built around three core pillars, governance architecture, socio-technical infrastructure, and adaptive capacity, and explains how their interactions generate differentiated adoption outcomes across five institutional contexts. Localization is conceptualized as a cross-cutting mediating mechanism through which governance arrangements, standards, platforms, and capabilities are adapted to domestic realities, shaping both current performance and future transformation potential. Three questions guide the analysis: how institutional contexts moderate the impact of infrastructure investment; what complementarities and compensatory mechanisms enable progress under institutional constraints; and how digital investments can be sequenced according to institutional starting points. To operationalize this logic, the Performance–Knowledge Index (PKI) is introduced as a context-sensitive diagnostic tool that identifies binding constraints and supports sequenced intervention design. The study contributes a contingent institutional model, a methodological bridge between diagnosis and implementation, and a structured, actionable framework for advancing sustainable digital adoption in developing economies.</jats:p>

Abstract

PurposeDigital transformation (DT) is a multidimensional process that encompasses significant technological, organizational and cultural shifts that aim to enhance business operations, fostering innovation and driving sustainable growth. While substantial research has explored DT in large organizations, the unique challenges and dynamics faced by micro and small-sized enterprises (MSEs), particularly in emerging economies, remain underexamined. This study addresses this gap by investigating the sociotechnical system (STS) factors that influence the capacity of MSEs to implement DT within the context of an emerging market.Design/methodology/approachA multiple case study involving 35 MSEs in southern Brazil was conducted over six months. Data were collected through a comprehensive digital check-up tool, questionnaires and in-depth interviews, all integrated into an innovation project strategically aimed at promoting DT. The study also involved the guidance of four DT experts to ensure analytical rigor.FindingsThe research identified 40 distinct factors that serve as both barriers and facilitators to DT. The results indicate that MSEs demonstrating improvements across multiple STS dimensions – technical, social, organizational and environmental – are significantly more likely to achieve sustainable digital transformation. The analysis underscores the importance of the interplay between these subsystems in shaping the success of DT initiatives. Practical implications: This study provides actionable insights for MSE managers, policymakers and DT service providers. By understanding the critical interdependencies among sociotechnical subsystems, stakeholders can develop targeted strategies to overcome barriers, enhance digital maturity and optimize technology adoption. These insights are particularly relevant for addressing the unique challenges faced by MSEs in resource-constrained environments.Practical implicationsThe study provides actionable insights for MSE managers, policymakers and DT service providers. Understanding STS interdependencies enables targeted strategies to overcome barriers, enhance digital maturity and optimize technology adoption, particularly in resource-constrained environments.Originality/valueThis research uniquely applies the STS framework to the DT process in MSEs, offering a holistic perspective on the complex interactions between technological, organizational and social factors. By focusing on an emerging market context, the study not only bridges a critical gap in the literature but also generates practical guidelines for fostering digital transformation in smaller enterprises. The findings contribute to both theoretical advancements in sociotechnical systems research and the development of context-sensitive strategies to support MSEs in their digitalization journeys.

Abstract

<jats:sec> <jats:title>Purpose</jats:title> <jats:p>This study aims to investigate how small and medium enterprises (SMEs) in developing countries can leverage customer relationship management (CRM) for business growth. It extends the Technology–Organization–Environment (TOE) framework by incorporating digital leadership and examining its role in moderating the effects of technological and organizational contexts on CRM adoption.</jats:p> </jats:sec> <jats:sec> <jats:title>Design/methodology/approach</jats:title> <jats:p>The research uses a quantitative, descriptive and cross-sectional approach, collecting data from 223 SMEs in Indonesia supported by Jadah Tempe Kaliurang Small and Medium Industries, which have already adopted CRM. Data analysis was conducted using SEM-PLS with SmartPLS.</jats:p> </jats:sec> <jats:sec> <jats:title>Findings</jats:title> <jats:p>The study finds that environmental factors and digital leadership are crucial for CRM adoption in SMEs, while technological and organizational factors have minimal impact. Notably, digital leadership negatively moderates the effect of organizational context on CRM adoption.</jats:p> </jats:sec> <jats:sec> <jats:title>Research limitations/implications</jats:title> <jats:p>The study emphasizes the need to integrate digital leadership into the TOE framework for a more comprehensive understanding of CRM adoption.</jats:p> </jats:sec> <jats:sec> <jats:title>Practical implications</jats:title> <jats:p>The results help SMEs identify key factors affecting CRM adoption and develop strategies for successful implementation, highlighting the importance of digital leadership.</jats:p> </jats:sec> <jats:sec> <jats:title>Social implications</jats:title> <jats:p>The study underscores that SME leaders in developing countries must enhance their digital skills to adopt CRM effectively.</jats:p> </jats:sec> <jats:sec> <jats:title>Originality/value</jats:title> <jats:p>This research contributes to the TOE framework by showing digital leadership’s critical, albeit unexpectedly negative, role in CRM adoption among SMEs.</jats:p> </jats:sec>

Abstract

<jats:sec><jats:title content-type="abstract-subheading">Purpose</jats:title><jats:p>This paper proposes adequate strategies that companies, public administrators and organisations in the education industry can undertake to successfully face the challenges of digital transformation in a regional innovation system. This research considers stakeholders that operate in the Tyrol–Veneto macroregion (the Tyrol, South Tyrol and Veneto areas), a significant case of moderately innovative European macroregion.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title><jats:p>This study undertakes explorative research based on a qualitative method. It adopts a place-based multi-stakeholder approach to emphasise the role of three categories of stakeholders (companies, educational system and regional governments) in facing digital changes. More precisely, interviews with 60 stakeholders from the Tyrol–Veneto macroregion were conducted and examined via both text mining analysis and content analysis. First, correspondence factor analysis was performed using IRaMuTeQ software to identify homogeneous subsets of concepts (pillars–i.e., macroareas of strategic actions). Second, two coding phases were implemented using NVivo software to detect strategic fields of action and specific strategic actions undertaken to address the challenges of digital transformation.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Findings</jats:title><jats:p>The results highlight that digital transformation is a pervasive challenge of regional innovative system that requires a multifaceted set of strategic actions falling into three main pillars. The first pillar, named “culture and skills”, includes three strategic fields of action as follows: digital education, talents and digital culture. The second pillar, named “infrastructures and technologies”, points out the need of information, interaction and artificial intelligence as key strategic fields of action. The third pillar, named “ecosystems”, highlights the importance of investing in medium- to long-term visions, partnerships and life quality. In brief, this study shows that standalone interventions are insufficient to tackle digital transformation from a systemic perspective. Moreover, this study outlines the potential contribution of each category of stakeholder to foster the digitalisation of the Tyrol–Veneto macroregion.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Practical implications</jats:title><jats:p>This study highlights the importance of developing digital culture and skills before investing in digital infrastructure and technology in a moderately innovative macroregion. Companies should alter their vision before reconfiguring their business models, invest in smart working and establish contacts with start-ups. In addition, this study recommends that public administration should mainly invest in digital education and partnerships, while, in terms of education and training organisations, it suggests providing digital skills to several cohorts of both students and workers. Policy implications call for the creation of new occasions of cooperation among stakeholders by fostering “table talks” as strategic and policy actions and by making more financial resources available to encourage the digital transformation processes.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Originality/value</jats:title><jats:p>The results of this study may be adapted to the characteristics of other regional innovative systems and used as a reference point in terms of the improvement of business, market and local development.</jats:p></jats:sec>