Digital business transformation adoption in SMEs and large firms during COVID-19

Abstract

ABSTRACT The COVID-19 pandemic has presented significant challenges for businesses worldwide. Those who recognised the importance of an online presence and transformed their traditional business model into a digital one were better equipped to mitigate the pandemic's negative impacts. However, there is a lack of research on the differences in digital transformation between small and medium-sized enterprises (SMEs) and large firms, as well as the main factors driving this transformation. This paper aims to address this gap by examining the successful digital transformation among these groups (SMEs and Large firms) in the province of New Brunswick, Canada, as a case study. The study uses secondary data from the TechImpact survey to explore the primary factors of this shift for both SMEs and large firms. The study confirms the critical factors identified in the literature, while also revealing new factors specific to each group. For SMEs, these include adopting a digital business model, investing in low-budget social media and e-marketing, recruiting young digital experts, and accessing government grants and subsidies. For large firms, the factors include implementing mass customisation through online channels, providing remote work incentives, using a comprehensive content management system, and prioritising electronic customer relationship management and e-loyalty.