TO DIGITALIZE OR NOT? COVID EFFECT IN MEDIUM SIZED COMPANIES BASED ON THREE CASES

Abstract

The aim of this exploratory study is to evaluate the level and methods of adaptation of small and medium sized enterprises (SMEs) to the rapid and unforeseen changes during COVID-19 era through digitization and digital transformation. Although the whole world has been affected by the COVID-19 pandemic in general, its impact on the business environment does not show a homogeneous distribution among countries, sectors, and companies. Even if the reasons are variable, the challenges and costs in front of the digitalization of SMEs all over the world are higher than that of large companies. In this context, it is aimed to reveal the knowledge and lessons learned which will form the basis for innovative, managerial, and entrepreneurial practices related to digital transformation initiatives in SMEs. In this study, a series of semi-structured interviews were conducted with the chief information officers and executives responsible for information technologies and digital transformation in three purposively selected small and medium-sized companies in the Aegean region of Türkiye, namely Bakioğlu, Norm, and Ürper respectively. Results for the decision-making processes and practices of the executives regarding the leadership characteristics of information technologies and the decisions taken regarding internal digitalization applications and adaptation to the new work environment during the covid pandemic period are presented. Within the framework of the literature, policy recommendations are provided by analyzing the interaction of their compliance with digital transformation, information management, and corporate governance principles with their strategic management and leadership characteristics. In particular, the interaction between digital maturity levels and digitalization and digital transformation practices is evaluated. In this way, we try to contribute to the advancement of the existing literature by proposing a digital maturity model taking into account the cultural, communication and technological business context.