Towards Industry 4.0: A Guide to Digital Transformation for Food Sector SMEs in Brazil

It has been widely recognized that Small and Medium size Enterprises(SMEs) not only play an important role in the economy of a country, but are crucial to the country’s economic stability. This article reviews UN and World Economic Forum ICT indicators for assessing the adoption of Information and Communication Technologies (ICT) in Gulf Cooperation Countries (GCC). Also, it presents the results of an exploratory study carried out to learn about the adoption of ICT in SMEs in Oman. The study investigates infrastructure, software used, driver for ICT investment, perceptions about business benefits of ICT and outsourcing trends of SMEs. The study provides an insight on the barriers for the adoption of ICT. Data on these aspects of ICT was collected from 51 SMEs through a survey questionnaire. The results of the study show that only a small number of SMEs in Oman are aware of the benefits of ICT adoption. The main driving forces for ICT investment are to provide better and faster customer service and to stay ahead of the competition. A majority of surveyed SMEs have reported a positive performance and other benefits by utilizing ICT in their businesses. A number of SMEs outsource most of their ICT activities. Lack of internal capabilities, high cost of ICT and lack of information about suitable ICT solutions and implementation were some of the major barriers in adopting ICT. These findings are consistent with other studies. There is a need for more focus and concerted efforts on increasing awareness among SMEs on the benefits of ICT adoption. The results of the study recognize the need for more training facilities in ICT for SMEs, measures to provide ICT products and services at an affordable cost, availability of free professional advice and/or consulting services at reasonable cost to SMEs. Our findings can help policy makers focusing on ICT adoption by SMEs. Also, the findings of this research will provide a foundation for future research and will help policy makers in understanding the current state of affairs of the usage and impact of ICT on SMEs in Oman and other GCC countries.

Information systems research lacks a validated scale for assessing and measuring the adoption of information and communication technologies (ICTs) by small- and medium-sized enterprises (SMEs). The relevant literature is limited in studies mainly concentrating on developing country settings. Furthermore, the emergence of new technological elements and increasing digitalization and digital transformation efforts in the last two years have changed how an organization utilizes and adopts ICTs. Therefore, it is inevitable that the conceptual dimensions proposed in the previous literature and the definitions of these dimensions will also alter. Hence, it is essential to revisit and validate the prior work and enhance it based on current vitality and developments. This study developed and validated a scale for measuring ICT adoption and digitalization for SMEs in a developing country context. The researchers followed an eight-step scale development procedure: (1) comprehensive literature review on ICT adoption and digitalization; (2) identification of dimensions of the level of ICT adoption and digitalization; (3) generation of items; (4) item refinement through focus group; (5) pretest of the measurement; (6) scale purification; (7) data collection; and (8) measurement evaluation. Within the Turkish setting, the ICT adoption scale was determined to have sufficient reliability and validity. Data for this study were gathered from 421 respondents of 219 Turkish SMEs. Supporting the multidimensionality of ICT adoption, 14 items and five dimensions (communication, internal integration, integration with customers, interorganizational integration, and strategic integration) constituted the ICT adoption construct. Considering the dominance of conceptual frameworks that were proposed based on developed countries and the prevalence of unidimensional constructs in the field, the developed multidimensional scale is expected to contribute significantly. Practitioners and policymakers can utilize the suggested scale to discover areas where specific changes are required for the digital transformation in SME utilization efforts that need attention. The outcomes can be applied to industrial sectors and different geographic contexts. By considering stage-based integration, the developed scale can also be used in future studies to investigate the effects of different variables on the extent of ICT adoption and the impact of ICTs on several organizational outcomes.

In this paper, the impact of leadership on the digital transformation process in small and medium-sized enterprises (SMEs) is measured. They focus on uncovering the leadership practices that contribute to successful digital transformations. The research is quantitative in nature through a survey of leaders and employees in SMEs. It served as a gateway for SMEs to deep insights that could be used in navigating your way around the current digital transformation. Transformational leadership is highlighted as a critical factor in driving successful digital transformation, emphasizing the importance of visionary and motivational leadership in fostering a culture of innovation and adaptability. The study also addresses significant challenges such as limited financial resources, resistance to change, lack of digital skills, and inadequate infrastructure. While this paper does not yet present the final results, it outlines the expected outcomes based on the hypotheses and literature review. It is anticipated that transformational leadership will lead to improvements in efficiency, innovation, and competitive advantage, thereby demonstrating the value of strong leadership in digital transformation initiatives. Overall, this research contributes significantly to the field of digital transformation by providing valuable insights into effective leadership styles, understanding challenges and strategies, demonstrating the expected impact of leadership on organizational performance, and proposing a comprehensive framework for SMEs. These contributions will provide practical guidance for SMEs and enrich the academic literature on digital transformation.

This paper analyses the factors that determine the process of digital transformation of small and medium-sized enterprises (SMEs). To this end, digital transformation is conceptually approached as an innovation process in a company that affects its products and processes. The proposed theoretical framework integrates, from a holistic perspective, three dimensions in the digital transformation process in SMEs: (1) the technological dimension; (2) the human capital dimension; and (3) the organizational/relational dimension. Furthermore, these dimensions manifest themselves at three levels of analysis: (a) the entrepreneur/manager; (b) the firm; and (c) the environment external to the firm. The empirical research presented in this paper is based on a representative survey of SMEs in Spain. The results highlight that both internal skills and external sources of knowledge regarding information and communication technology (ICT) through consultants, suppliers, universities and technological centers constitute critical and complementary drivers for digital innovation in SMEs. The analysis also reveals the importance of an explicit digital transformation strategy in the company and the distribution of responsibilities regarding digitalization beyond the leadership of the entrepreneur/manager. Likewise, the complex use of the Internet by entrepreneurs/managers is observed to favor digital product innovation, whereas their growth ambition stimulates digital process innovation. The results also indicate that the relevance of the aforementioned determinants varies somewhat for microenterprises compared to other SMEs.

Purpose This paper aims to assess information and communication technologies (ICT) policies for digital transformation in Colombia to determine their effectiveness in technology readiness for Internet of Things (IoT) adoption in small and medium enterprises (SMEs) in the trading sector. Design/methodology/approach The authors conducted a longitudinal study using the ICT module of the Annual Trade Survey (2017–2018) to determine the relationship between SMEs in the trading sector adopting ICT applications and ICT policy enforcement. In this sense, this study applied a chi-square test for independence and addressed a descriptive analysis to determine SMEs’ causes for adopting or rejecting ICT applications. Findings This study presents the state of ICT adoption in Colombian SMEs in the trading sector between 2017 and 2018, highlighting that technology readiness is crucial for adopting technological trends. Research limitations/implications The data source used for the study is only available for analysis one year after implementing ICT policies focused on digital transformation. Practical implications The results support the need for the National Government to formulate IoT policies that favor the adoption of e-commerce based on IoT technologies in SMEs in the trading sector. Social implications IoT adoption can mitigate e-commerce problems strengthening SMEs’ competitiveness in the trading sector leading the digital transformation in Colombia. Originality/value This study presents the need to formulate IoT policies in Colombia focused on deploying IoT applications to strengthen e-Commerce in SMEs in the trading sector.

Purpose A strong digital strategy is crucial for guiding digital innovation and ensuring successful digital transformation for small and medium-sized enterprises (SMEs) in today’s environment. This study investigates the relationship between digital strategy and digital transformation, emphasizing the serial mediation of big data analytics capability and data-driven insight. Design/methodology/approach We collected survey data from a sample of 192 SMEs operating in Korea. This research examined the mediating role of big data analytics capability and the further mediating effect of data-driven insight using the Partial Least Squares Structural Equation Modeling technique. Findings The empirical results demonstrate that (1) digital strategy had a positive impact on digital transformation; (2) big data analytics capability played a mediator in the relationship between digital strategy and digital transformation; (3) data-driven insight plays an additional mediating role, reinforcing the impact of big data analytics capability on digital transformation; and (4) the relationship between digital strategy and digital transformation is sequentially mediated by big data analytics capability and data-driven insight. Originality/value This study contributes to the present digital innovation and strategy literature by illustrating how SMEs can leverage big data analytics capability and data-driven insight to maximize the effectiveness of their digital strategy. The findings provide theoretical contributions to digital strategy research and offer practical insights for (SMEs aiming to accelerate digital transformation in competitive markets.

Purpose: Digital transformation has emerged as a strategic priority fostering the advancement of high-quality small and medium-sized enterprises (SMEs). However, existing research provides only limited and fragmented insights into the underlying components that determine digital success within SMEs. The purpose of this study is to identify the key factors shaping the digital transformation process in SMEs and to explore effective paths for their successful digital adaptation. Design/methodology/approach: The study was conducted using the fuzzy-set Qualitative Comparative Analysis (fsQCA) method, which was applied to a sample of 56 small and medium-sized enterprises (SMEs) in order to identify the key configurational paths leading to successful digital transformation. Findings: The findings indicate that the success of digital transformation in SMEs is not driven by a single factor but rather emerges from the adaptive interplay of multiple variables. Five main paths to successful digital transformation in SMEs were identified. A comparative analysis of these paths reveals substitutive effects among certain drivers of digital transformation. Originality/value: This study advances the understanding of the antecedents of digital transformation in SMEs by uncovering the complex causal relationships among influencing factors. At the same time, it provides practical insights and guidance for enterprises pursuing digital transformation initiatives.

Digital transformation refers to technological application with a comprehensive shift in corporate governance's mindset, structure, and strategy. In particular, digital transformation project management is key in ensuring that digital transformation initiatives are implemented on schedule and achieve the set goals. This study investigates the importance of a leader's project management competence and other internal factors in successfully implementing digital transformation projects. Through Partial Least Squares Structural Equation Modeling (PLS-SEM), data collected from questionnaires administered to 436 small and medium-sized enterprises (SMEs) in Thanh Hoa, Vietnam shows that all four internal factors included in the model directly affect the transform digital ability and indirectly affects the level of digital transformation of SMEs, in which the most decisive influence comes from digital transformation strategy, followed by the influence of corporate culture, technology platform and finally workforce competence. More specifically, this study has demonstrated that an enterprise's digital transformation can be considered a project, and the leader's project management competence determines the project's success. The project management capacity of the enterprise leaders not only directly affects the digital transformation results but also plays a positive moderator in the association between digital transformation capability and the digital transformation level of SMEs. The results suggest several recommendations for leaders of SMEs in Thanh Hoa Province to improve project management capacity, thereby promoting the digital transformation process.

Small and medium-sized enterprises (SMEs) operating in Thailand’s food manufacturing sector face increasing pressure to embrace digital transformation. This study explores the critical factors influencing digital transformation in SMEs, focusing on digital organizational culture, knowledge acquisition, and organizational readiness. Drawing upon the Technology–Organization–Environment (TOE) framework, we investigate the relationships between digital organizational culture, knowledge acquisition, organizational readiness, and digital transformation. Data were collected from 198 food manufacturing SMEs using purposive sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Our findings underscore the pivotal role of digital organizational culture and knowledge acquisition in facilitating digital transformation within Thai SMEs. We also reveal that organizational readiness acts as a full mediator, significantly impacting the success of digital transformation initiatives. Practically, this study highlights the importance of fostering a robust digital organizational culture through collaborative efforts and advocating for knowledge exchange from external sources. Additionally, it emphasizes the need for SMEs to allocate resources and prioritize readiness for change to ensure seamless digital transformation. Theoretically, our research contributes to a deeper understanding of the digital transformation journey within the context of SMEs in the food manufacturing industry. By aligning with the TOE framework, we provide valuable insights tailored to SMEs, offering guidance for navigating the complexities of digital transformation in today’s rapidly evolving business landscape.

Recently, digital transformation has attracted much attention of both academics and practitioners. With the advent of digital technologies, small-and-medium-sized enterprises (SMEs) have the capacity to initiate digital transformation initiatives in a similar fashion as the large-sized organizations. The innate characteristics of digital technologies too favor SMEs in initiating digital transformation initiatives. However, the existing the findings on digital transformation in SMEs are limited and remain fragmented. Considering the important financial contribution SMEs can offer to nations and economies, it is timely and relevant to conduct a profound analysis on digital transformation in SMEs. By conducting a comprehensive review of related literature in information systems, management, and business disciplines, this book chapter aims to understand enablers of the digital transformation process in SMEs. The findings introduce internal and external enablers that lead to the success of digital transformation process in SMEs.

Small and Medium Size Enterprises (SMEs) are major sources of employment and value creation, as it plays a key role in Sri Lankan livelihood. It is evident that the SME sector in Sri Lanka does not provide the expected results and this sector lacks innovation. Thus, it is important to identify opportunities to improve the SME’s innovative capacity and business performance. This study was designed to investigate the impact of Information and Communication Technology (ICT) on innovations of SMEs in the Western Province of Sri Lanka, and to identify the existing level of ICT usage among the SMEs in the Western Province of Sri Lanka. This study used a quantitative research method. The population of the study was SMEs with less than 500 employees in the Western Province. The sample frame was derived from the two main listings of organizations: the Ceylon Chamber of Commerce and the Ministry of Industries and Industrial Development Board. Accordingly, 350 respondents were selected by using the simple random sampling method. Data were analyzed using the SPSS statistical tool with descriptive and inferential statistics. This study identified four main types of innovations namely: product, process, market, and organizational, and found that there is a significant effect of ICT usage on SMEs innovations. Future research could be undertaken to examine the mediating effect of ICT-based innovations and ICT usage on business performance. Keywords: Entrepreneur, Innovation, Small and Medium size Enterprises, Information and Communication Technology

Small and medium-sized enterprises (SMEs) are regarded as the backbone of most economies worldwide. They are key role players in job creation, economic growth and poverty alleviation. SMEs face many challenges such as resource constraints; a lack of skills, innovation, digital skills and finances; and continuous changes in the business environment. One such change is the Fourth Industrial Revolution, also referred to as Industry 4.0. SMEs lag in the adoption of digital technologies and are still using conventional methods as part of their business models, which poses a threat to their survival and competitiveness. Industry 4.0 comprises many constructs, including digitalisation and digital transformation. While digitalisation and digital transformation require a business to make changes to its business model, and business model innovation (BMI) offers such an opportunity, no study has combined the BMI process with digital transformation to determine if SMEs are digitally transforming their business models. The overall aim of the study was to determine the degree to which South African and Dutch SMEs are digitally transforming their business models. To achieve the overall objective, the study aimed to (1) review existing literature in the field of digitalisation, digital transformation, and business model innovation, (2) review the current state of the use of digitalisation and business model innovation in South African and Dutch SMEs, (3) develop a conceptual model to assess if South African and Dutch SMEs are achieving business model innovation through digital transformation and determine how this affects their overall business performance and (4) assess whether South African and Dutch SMEs are achieving business model innovation through digital transformation and determine the impact this has on their overall business performance. This study followed a five-stage approach. The first stage consisted of a preliminary literature review to explore current research and debates on digitalisation, digital transformation and BMI, with a particular focus on SMEs. In the second stage, a narrative review was conducted to examine the literature with the aim of identifying and analysing the constructs underlying the three concepts of digitalisation, digital transformation and BMI. The third stage was a Delphi study conducted with South African and Dutch SMEs and scholarly experts in the closely related fields of entrepreneurship, technology, business management and innovation to identify the main and sub-factors that enable digital transformation for BMI in SMEs. The fourth stage was a systematic review to identify the dimensions that are included in digital maturity models and to determine ways in which BMI is achieved. The last stage consisted of developing and empirically testing a research model based on the results of stages 3 and 4. The findings of the aforementioned studies led to the development of a research model. This research model was developed and empirically tested on South African and Dutch SMEs. The results indicate that BMI through digital transformation has a positive impact on the overall business performance of SMEs. In addition, the flexibility of the organisational structure and strategic renewal acts as moderator between the relationship of BMI through digital transformation and business performance. The proposed framework that resulted from this study guides SME owners and managers in ways to achieve BMI through identifying potential areas to integrate digital technologies, which is unique in its nature. This study is also one of the first to conduct an empirical research study to assess the degree to which South African and Dutch SMEs are digitally transforming their business models. SME owners and managers can therefore use the measuring instrument to assess the degree to which their business model has been digitally transformed. The instrument could also highlight areas of concern and for improvement.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity). The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance. This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Aim/Purpose: The study explores Information and Communication Technologies (ICTs) application in terms of social media usage to promote businesses with emphasizes on SMMEs in underdeveloped regions in the information age era. Background: The application of ICTs platform in terms of Social Media in the information age economies era by Small Medium and Micro Enterprises (SMMEs) especially those operating in an underdeveloped regions, opens up the global markets to them without much hindrances but as noted by Buhalis (2003), SMMEs especially those in developing countries are not utilizing ICTs in their business to its full potential. And even though Internet access and ICTs devices are becoming more common in South Africa (Goldstuck, 2012), literature of the application of Social Media to support SMMEs business activities in underdeveloped regions are limited. Methodology: Quantitative and purposive methods were used to collect data through. Findings: The major findings of the study are although in the area of access to ICTs and Internet connectivity the results was encouraging as all respondents (100%) do have one or more means to ICTs and internet, but the results in terms of application of Social Media to project their businesses to the rest of the world and consequently accessing the global market opportunities that ICTs present in the information age is lacking among the respondents. Impact on Society: As explained by Hargittai and DiMaggio (2001) that in order to achieve proper ICTs usage by users, the user will first have to realized the need and what the usage of ICTs will accomplish for them. Therefore, the study recommends that agencies tasked with helping SMMEs needs to come up with educational programmes to educate SMMEs entrepreneurs in the selected regions about the need for integration and benefits of ICTs to businesses in the information age global economies era to encourage the application of ICTs.

In today’s rapidly evolving business landscape, digital transformation has become synonymous with the strategic integration of cloud computing, mobile internet, social media, and big data. This paradigm shift has reshaped traditional business models, presenting organizational challenges and opportunities. Small and medium-sized enterprises (SMEs), in particular, face a unique set of obstacles as they navigate the complexities of this digital revolution. This research paper delves into the intricacies of digital transformation within the SME context. It acknowledges the significance of this transformation for enhancing core competencies and sustainable development, emphasizing the convergence of business strategy and technological advancement. To provide a comprehensive understanding, this study employs bibliometric analysis using CiteSpace, shedding light on underappreciated procedures, steps, and data related to SMEs’ digital transformation. A systematic literature review extracts a theoretical framework, offering valuable insights and guidance for SMEs operating in an increasingly digitalized business environment. The research contributes to the ongoing global discussion on digital transformation and highlights differences and similarities across various research domains. It identifies thematic clusters such as “Digital transformation of SMEs,” “Industry 4.0,” “Adoption paths,” and “Business model,” revealing trends, themes, and shifts in studying digital transformation in SMEs worldwide. This paper provides a valuable synthesis of previous research accomplishments, offering theoretical implications for academia and practical managerial insights. It emphasizes the importance of collaborative mechanisms and research networks, fostering knowledge exchange and driving innovation in the field of digital transformation for SMEs, both nationally and internationally.