Evaluating Digital Transformation Pathways an Their Influence on SME Market Outcomes: A PRISMA – Based Systematic Evidence
DOI:
https://doi.org/10.70062/globalmanagement.v2i4.474Keywords:
Digital Transformation, Market Outcome, Market Performance, MSMEs – Micro Small Medium Enterprises, Systematic Literature ReviewAbstract
Digital transformation has become a major driver in enhancing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in the era of global competition. However, scientific evidence regarding the pathway of digital transformation and its impact on market performance remains separately distributed and has not been systematically synthesized. This study conducts a Systematic Literature Review (SLR) based on PRISMA 2020 on international publications within the 2013–2024 range. The results of the analysis indicate that the digital transformation pathway encompasses digital capability, digital orientation, digital integration, digital strategy alignment, and the utilization of operational technology. Each pathway contributes differently to market outcomes such as sales growth, customer retention, market expansion, and competitive advantage. The study also found the presence of moderating and mediating roles through innovation capability, dynamic capability, organizational culture, and competition intensity. This research produces an integrated conceptual model and recommendations for a further research agenda to deepen strategic management theory in the context of MSMEs.
References
Akpe, O. E. E., Mgbame, A. C., Ogbuefi, E., Abayomi, A. A., & Adeyelu, O. O. (2023). Technology acceptance and digital readiness in underserved small business sectors. Journal of Frontiers in Multidisciplinary Research, 4(1), 252-268. https://doi.org/10.54660/.IJFMR.2023.4.1.252-268
Bhuiyan, M. R. I., Faraji, M. R., Rashid, M., Bhuyan, M. K., Hossain, R., & Ghose, P. (2024). Digital transformation in SMEs: Emerging technological tools and technologies for enhancing the SME’s strategies and outcomes. Journal of Ecohumanism, 3(4), 211–224. https://doi.org/10.62754/joe.v3i4.3594
Bi, R., Davison, R. M., & Smyrnios, K. X. (2017). E-business and fast growth SMEs. Small Business Economics, 48(3), 559-576. https://doi.org/10.1007/s11187-016-9788-8
Egodawele, M., Sedera, D., & Bui, V. (2022). A systematic review of digital transformation literature (2013-2021) and the development of an overarching apriori model to guide future research. arXiv Preprint arXiv:2212.03867. https://doi.org/10.48550/arXiv.2212.03867
Faruque, M. O., Chowdhury, S., Rabbani, G., & Nure, A. (2024). Technology adoption and digital transformation in small businesses: Trends, challenges, and opportunities. International Journal for Multidisciplinary Research, 6(10), 36948. https://doi.org/10.36948/ijfmr.v06i05.29207
Fillis, I., & Wagner, B. (2005). E-business development: An exploratory investigation of the small firm. International Small Business Journal: Researching Entrepreneurship, 23(6), 604-634. https://doi.org/10.1177/0266242605057655
Gilbert, W., & Suyanto, S. (2025). Improving digital marketing for micro enterprises in Segoro Tambak village: A community engagement. As-Sidanah: Journal of Community Service, 7(2), 387–405. https://doi.org/10.35316/assidanah.v7i2.387-405
Hokmabadi, H., Rezvani, S. M. H. S., & de Matos, C. A. (2024). Business resilience for small and medium enterprises and startups by digital transformation and the role of marketing capabilities—A systematic review. Systems, 12(6), 220. https://doi.org/10.3390/systems12060220
Ijomah, T. I., Idemudia, C., Eyo-Udo, N. L., & Anjorin, K. F. (2024). Harnessing marketing analytics for enhanced decision-making and performance in SMEs. World Journal of Advanced Science and Technology, 6(1), 1-12. https://doi.org/10.53346/wjast.2024.6.1.0037
Joensuu-Salo, S., & Viljamaa, A. (2024). The relationship between digital orientation, organizational ambidexterity, and growth strategies of rural SMEs in time of crisis. The International Journal of Entrepreneurship and Innovation, 25(2), 128-141. https://doi.org/10.1177/14657503241245560 (Original work published 2024)
Luz, A. (2025). The role of digital platforms in enhancing the market reach of small businesses in rural America. Preprints. https://doi.org/10.20944/preprints202502.1162.v1
Ma, J., Qian, Q. K., Visscher, H., & Song, K. (2021). Homeowners’ participation in energy efficient renovation projects in China’s northern heating region. Sustainability, 13(16), 9037. https://doi.org/10.3390/su13169037
Maycotte, S., Alvarez-Risco, A., Garcia-Valenzuela, E., & Kuljis, M. (2025). Digital capabilities in emerging market firms: Construct development, scale validation, and implications for SMEs. Journal of Open Innovation: Technology, Market, and Complexity, 11(2), 100513. https://doi.org/10.1016/j.joitmc.2025.100513
Mechman, A., Siti, O., Ghaffar, K., Jamal, B., & Moham, A. (2021). The effect of information technology business alignment factors on performance of SMEs. Management Science Letters, 11, 833–842. https://doi.org/10.5267/j.msl.2020.10.019
Nasiri, M., Saunila, M., & Ukko, J. (2022). Digital orientation, digital maturity, and digital intensity: Determinants of financial success in digital transformation settings. International Journal of Operations & Production Management, 42(13), 274-298. https://doi.org/10.1108/IJOPM-09-2021-0616
Omowole, B. M., Olufemi-Philips, A. Q., Ofadile, O. C., Eyo-Udo, N. L., & Ewim, S. E. (2024). Barriers and drivers of digital transformation in SMEs: A conceptual analysis. International Journal of Frontline Research in Multidisciplinary Studies, 5(2), 19-36. https://doi.org/10.56781/ijsrst.2024.5.2.0037
Omowole, B. M., Olufemi-Philips, A. Q., Ofadile, O. C., Eyo-Udo, N. L., & Ewim, S. E. (2024). Big data for SMEs: A review of utilization strategies for market analysis and customer insight. International Journal of Frontline Research in Multidisciplinary Studies, 5(1), 1-18. https://doi.org/10.56781/ijsrms.2024.5.2.0044
Parra-Sánchez, D. T., & Talero-Sarmiento, L. H. (2024). Digital transformation in small and medium enterprises: A scientometric analysis. Digital Transformation and Society, 3(3), 257–276. https://doi.org/10.1108/DTS-06-2023-0048
Pfister, P., & Lehmann, C. (2023). Measuring the success of digital transformation in German SMEs. Journal of Small Business Strategy, 33(1), 1-19. https://doi.org/10.53703/001c.39679
Rahman, S., & Hossain, M. Z. (2024). Cloud-based management information systems: Opportunities and challenges for small and medium enterprises (SMEs). Pacific Journal of Business Innovation and Strategy, 1(1), 28-37. https://doi.org/10.70818/pjbis.2024.v01i01.014
Ribau, P., & Moreira, C. (2017). SMEs innovation capabilities and export performance: An entrepreneurial orientation view. Entrepreneurship and Innovation, 18(5), 920–934. https://doi.org/10.3846/16111699.2017.1352534
Rupeika-Apoga, R., Petrovska, K., & Bule, L. (2022). The effect of digital orientation and digital capability on digital transformation of SMEs during the COVID-19 pandemic. Journal of Theoretical and Applied Electronic Commerce Research, 17(2), 669-685. https://doi.org/10.3390/jtaer17020035
Safiul Islam, E., Hossain, M., Rahman, M. S., Rahman, M. M., Khan, S. I., & Ashik, A. A. M. (2023). Digital transformation in SMEs: Unlocking competitive advantage through business intelligence and data analytics adoption. Journal of Business and Management Studies, 5(6), 177-186. https://doi.org/10.32996/jbms.2023.5.6.14
Sandu, R., Gide, E., & Karim, S. (2017). The impact of innovative strategies to influence the adoption of cloud-based service success in Indian small and medium enterprises (SMEs). International Journal of Arts & Sciences, 10(2), 403-413.
Shen, L., Zhang, X., & Liu, H. (2022). Digital technology adoption, digital dynamic capability, and digital transformation performance of the textile industry: Moderating role of digital innovation orientation. Managerial and Decision Economics, 43(6), 2038-2054. https://doi.org/10.1002/mde.3507
Singh, R. P., Mishra, M., & Singh, R. K. (2023). Digital transformation of MSMEs: A unified framework integrating RBV and institutional perspectives. Journal of Business Research, 166, 114092. https://doi.org/10.1016/j.jbusres.2023.114092
Soluk, J., & Kammerlander, N. (2021). Digital transformation in family-owned Mittelstand firms: A dynamic capabilities perspective. European Journal of Information Systems, 30(6), 676–711. https://doi.org/10.1080/0960085X.2020.1857666
Van Hoang, D., Thi Hien, N., Van Thang, H., Nguyen Truc Phuong, P., & Thi-Thuy Duong, T. (2025). Digital capabilities and sustainable competitive advantages: The case of emerging market manufacturing SMEs. Sage Open, 15(2), 21582440251329967. https://doi.org/10.1177/21582440251329967
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118-144. https://doi.org/10.1016/j.jsis.2019.01.003
Widayanto, M. T., & Nafis, R. W. (2025). Enhancing SME performance through entrepreneurial literacy, innovation, and market responsiveness: The mediating role of digital transformation. Journal of Management and Entrepreneurship Research, 6(3), 218-234. https://doi.org/10.34001/jmer.2025.9.06.3-71
Yoo, S. J., Kim, H. M., & Lee, Y. R. (2019). The effects of international entrepreneurial orientation and entrepreneurial activities on SMEs’ export performance. Journal of Korea Trade, 23(7), 156-172. https://doi.org/10.35611/jkt.2019.23.7.156
