MDOI › International Journal of Multidisciplinary Studies and Innovative Researchs › 110.0241/INT.2026.00215
110.0241/INT.2026.00215
Article

Understanding determinants of digital transformation and digitizing management functions in incumbent SMEs

Sami Seppanen, Juhani Ukko , Minna Saunila 2025 International Journal of Multidisciplinary Studies and Innovative Researchs
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Abstract

This study focused on the factors enabling digital transformation and the digitization of management functions in small- and medium-sized enterprises (SMEs). Empirical evidence was derived from case studies involving 22 incumbent SMEs. The findings indicate that while employee capabilities and digital know-how are essential enablers of digital transformation, they also present challenges, including skill gaps, resistance to change, and reliance on legacy systems. To facilitate effective digital transformation, we propose that SMEs enhance technological skills within their workforce, cultivate innovation-friendly cultures, and address the disconnect between public discourse and actual digital tool adoption. Companies should adopt a cautious approach when integrating new technologies, emphasizing sustainable and human-centric transition. Furthermore, developing leadership skills that promote data-driven decision-making, collaborative problem-solving, and adaptive management is crucial. This study provides valuable insights into the dual role of employee capabilities in both facilitating and obstructing digital transformation within SMEs, offering guidance on strategies to successfully overcome the challenges that this transformation brings.

Identifier Metadata

Identifier 110.0241/INT.2026.00215
Canonical mdoi:110.0241/INT.2026.00215
Resolver URL https://mdoi.org/110.0241/INT.2026.00215
Resource URL Open resource
Document URL Open document
Content Type Article
Authors Sami Seppanen, Juhani Ukko , Minna Saunila
Year 2025
Depositor International Journal of Multidisciplinary Studies and Innovative Researchs Organisation
Prefix 110.0241
Registered June 19, 2026
Updated June 19, 2026
Status Active
Visibility Public

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