Abstract
In the digital era, the landscape of business operations and innovation
processes is rapidly evolving, especially for Small and Medium-sized Enterprises (SMEs).
This study explores the critical role of digital capabilities in enhancing the innovation
output of SMEs. Drawing on the Dynamic Capabilities Theory and the Resource-Based
View, the research underscores how digital transformation can drive competitive advantage
through improved digital infrastructure, analytics, and strategic support. Through the
strategic application of digital tools and capabilities, SMEs can achieve substantial
innovation outcomes, securing a sustainable competitive position in an increasingly
competitive environment. The qualitative analysis, based on in-depth interviews with Swiss
SME employers, reveals that digital capabilities facilitate the integration and optimization of
data resources, supporting production, sales, and warehousing processes. The findings
highlight that digital transformation streamlines operations and fosters new product
development, business model innovation, and market expansion. By leveraging digital tools
and capabilities, SMEs can achieve significant innovation outcomes and maintain a
sustainable competitive edge in a highly competitive environment. However, the study also
notes the limitations of focusing on a small sample size and suggests that future research
should include a broader range of SMEs across different countries and industries. The
study provides valuable insights and practical recommendations for SMEs aiming to
harness digital transformation for enhanced innovation performance. It emphasizes the
necessity of investing in digital infrastructure and capabilities to not only improve
efficiency and productivity but also to foster new business models and expand market
reach. This study contributes to the existing body of knowledge on digital transformation
and innovation performance by focusing on small and medium-sized enterprises (SMEs).
processes is rapidly evolving, especially for Small and Medium-sized Enterprises (SMEs).
This study explores the critical role of digital capabilities in enhancing the innovation
output of SMEs. Drawing on the Dynamic Capabilities Theory and the Resource-Based
View, the research underscores how digital transformation can drive competitive advantage
through improved digital infrastructure, analytics, and strategic support. Through the
strategic application of digital tools and capabilities, SMEs can achieve substantial
innovation outcomes, securing a sustainable competitive position in an increasingly
competitive environment. The qualitative analysis, based on in-depth interviews with Swiss
SME employers, reveals that digital capabilities facilitate the integration and optimization of
data resources, supporting production, sales, and warehousing processes. The findings
highlight that digital transformation streamlines operations and fosters new product
development, business model innovation, and market expansion. By leveraging digital tools
and capabilities, SMEs can achieve significant innovation outcomes and maintain a
sustainable competitive edge in a highly competitive environment. However, the study also
notes the limitations of focusing on a small sample size and suggests that future research
should include a broader range of SMEs across different countries and industries. The
study provides valuable insights and practical recommendations for SMEs aiming to
harness digital transformation for enhanced innovation performance. It emphasizes the
necessity of investing in digital infrastructure and capabilities to not only improve
efficiency and productivity but also to foster new business models and expand market
reach. This study contributes to the existing body of knowledge on digital transformation
and innovation performance by focusing on small and medium-sized enterprises (SMEs).
| Original language | English |
|---|---|
| Title of host publication | Enhancing Innovation Output in SMEs through Digital Capabilities |
| Publisher | International Conference on Business Management and Entrepreneurship（ICBME） |
| Publication status | Published - 2024 |