Resilience and digital transformation : a small to medium enterprise resilience framework

Abstract

Purpose Globalisation, financial crises, technology disruption and the recent COVID-19 pandemic have escalated competition and market uncertainty that threaten the survival of small and medium-sized enterprises (SMEs). Related to this issue, scholars indicate that digital transformation could help SMEs to generate their resilience. However, the benefits of digital transformation on SMEs’ resilience still need to be identified to provide a clear understanding for SMEs’ stakeholders and researchers. This study aims to investigate the critical role of digital transformation in gaining SME resilience and identify the antecedents of digital transformation that aim to generate SME resilience. Design/methodology/approach To achieve the objectives, we used a systematic literature review (SLR) with thematic analysis and proposed a new conceptual framework for the relationship between digital transformation and SME resilience. Findings We found that digital transformation is a critical enabler of SME resilience. Digital transformation enables SMEs to leverage their existing resources and business capabilities to work better and stimulate innovation, which improves business value. In this situation, SMEs can create business agility, which is the ingredient of resilience. Originality/value This study contributes to reorganise the literature to identify the theoretical basis regarding the importance of digital transformation in developing SME resilience. This study also suggests critical factors for successful digital transformation including leadership, strategic planning, strategic alignment, collaboration, and learning and digital capability development.