Digital Empowerment: How Small B to B Companies Remodel the Value Chain Through Digital Platforms

Abstract

ABSTRACT Purpose Digital platforms represent a major technological change that affects the entire value chain of a company and requires digital resources and a flexible organizational structure. Given the resource limitations that SMEs have, it is interesting to find out to what extent they have adopted digital platforms. The aim of this paper is to explore the level of SMEs’ digitalization and how sophisticated these businesses are in using various digital platforms in primary and secondary value creation activities. Additionally, we set out to identify clusters with different needs and behaviors when considering digital platforms. Methodology/Approach To address these research questions, we conducted a survey using a quota sampling procedure to reflect the SMEs’ structure in size and industry. We analyzed the data collected from 194 respondents using a two-step clustering procedure to identify different groups of SMEs with respect to the use of digital platforms. For business activities, we used Porter’s value chain and for assessing the adoption rate, we applied the Moore and Benbasat scale to measure adopters’ perceptions of the technology. Findings Most SMEs use general digital platforms while less than 20% have developed their own platforms or use the platforms of business partners. Organizations with a hybrid structure use the largest number of digital platforms, while enterprises with a fluid structure use the fewest. Companies are using their own platforms or partners’ platforms for primary activities while for support activities are employing general platforms. The most important factor which influences the adoption rate of digital platforms is the image and then comes the advantages they bring. Regarding the clusters, four distinct groups were identified with specific value creation behaviors Digital Pathfinders, Basic Techies, Tech Blend, and Flexible Adopters. Practical implications Practical implications concern both the companies that use digital platforms and the companies that develop them. From the user perspective, this study sets a benchmark for different industries and presents the most common practices Regarding the companies that develop digital platforms, it is important to know the main deterrence factors, namely the lack of testing possibilities and the difficulty in choosing the most suitable solution. Taking into account the specific needs of the four clusters, developers can adapt their product and value proposition to stimulate the adoption of the digital platform. Originality/Value/Contribution This paper contributes to research on digital platforms in the context of transformational entrepreneurship related to crisis or catastrophic events such as pandemics or wars. Furthermore, it adds to existing literature on digital transformation by providing recommendations considering specific value chain activities. Although there are numerous studies on digital platforms, most of them come from developed countries, which makes them less relevant for developing/underdeveloped ones.