CoChat
Sign Up
Cited by 702SMEs Development and Digital MarketingDigital Innovation in IndustriesBusiness Strategies and Innovation

Identifying Digital Transformation Paths in the Business Model of SMEs during the COVID-19 Pandemic

Open access
Priyono, Anjar, Moin, Abdul, Putri, Vera Nur Aini Oktaviani·2020·Journal of Open Innovation: Technology, Market, and Complexity
DOI 10.3390/joitmc6040104PMC PMC9906477
Open this paper in CoChat — free account

Abstract

The objective of this study was to analyze how small and medium enterprises (SMEs) cope with environmental changes due to the COVID-19 pandemic by pursuing the business model transformation with the support of digital technologies. To achieve the objective, this study used a multiple case study design with qualitative analysis to examine the data obtained from interviews, observation, and field visits. Seven manufacturing SMEs from Indonesia were selected using a theoretical sampling technique, with the purpose of achieving some degree of variation to allow us to undertake replication logic. Our analysis demonstrates that SMEs adopt a different degree of digital transformations, which can be summarized into three paths, depending on the firms' contextual factors. First, SMEs with a high level of digital maturity who respond to the challenges by accelerating the transition toward digitalized firms; second, SMEs experiencing liquidity issues but a low level of digital maturity who decide to digitalize the sales function only; and, third, the SMEs that have very limited digital literacy but are supported by a high level of social capital. This last group of firms solves the challenges by finding partners who possess excellent digital capabilities. The qualitative case study method allows us to conduct in-depth and detailed analysis, but has thin generalizability. To address this limitation, future research can use a survey covering various industries to test the proposed theory that has resulted from this study, so that the generalizability can be assured.

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Integrity signals

Registry

Crossref · 10.3390/joitmc6040104

Cites

4 of 4 references verified0 citation errors · 0 not checkable

Statistics

Claims the paper makes

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

  • The transformation of organizations can be achieved more effectively through public resources.

    “we found that the transformation of organizations can be achieved more effectively through public resources.”

    From Business Model Innovation of Exponential Organizations: The Case of Xiaomi (2023) · cites this paper as [52]

    The Empirical Findings (section 4.2; page unavailable) say that SMEs used assets belonging to parties outside the firm to improve efficiency during digitalization. The paper does not identify those assets as public resources or establish that public resources make organizational transformation more effective. (LLM, conf=0.77)

    Experimental — accuracy not yet measured

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

The self-check needs the paper’s full text.

Cites

Flagged first, then by citations

Research works printed but not linked: 46

  1. [1]Björkdahl J. Strategies for digitalization in manufacturing firms Calif. Manag. Rev. 2020 1 20 10.1177/0008125620920349 · DOI
  2. [2]Sein M.K. The serendipitous impact of Covid-19 pandemic: A rare opportunity for research and practice Int. J. Inf. Manag. 2020 in press 10.1016/j.ijinfomgt.2020.102164 32836630 PMC7261442 32836630 · DOI
  3. [3]Li F. Leading digital transformation: Three emerging approaches for managing the transition Int. J. Oper. Prod. Manag. 2020 ahead-of-print 10.1108/IJOPM-04-2020-0202 · DOI
  4. [4]Li F. The digital transformation of business models in the creative industries: A holistic framework and emerging trends Technovation 2018 102012 10.1016/j.technovation.2017.12.004 · DOI
  5. [5]Doern R. Williams N. Vorley T. Special issue on entrepreneurship and crises: Business as usual? An introduction and review of the literature Entrep. Reg. Dev. 31 2019 400 412 10.1080/08985626.2018.1541590 · DOI
  6. [6]Warner K.S. Wäger M. Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal Long Range Plan. 52 2019 326 349 10.1016/j.lrp.2018.12.001 · DOI
  7. [7]Dubey R. Gunasekaran A. Childe S.J. Blome C. Papadopoulos T. Big data and predictive analytics and manufacturing performance: Integrating institutional theory, resource-based view and big data culture Br. J. Manag. 30 2019 341 361 10.1111/1467-8551.12355 · DOI · Paper page
  8. [8]Gupta G. Bose I. Digital transformation in entrepreneurial firms through information exchange with operating environment Inf. Manag. 2019 103243 10.1016/j.im.2019.103243 · DOI
  9. [9]Richter A. Locked-down digital work Int. J. Inf. Manag. 2020 102157 10.1016/j.ijinfomgt.2020.102157 PMC7263207 32836629 · DOI · Paper page
  10. [10]Kuckertz A. Brändle L. Gaudig A. Hinderer S. Reyes C.A.M. Prochotta A. Steinbrink K. Berger E.S. Startups in times of crisis—A rapid response to the COVID-19 pandemic J. Bus. Ventur. Insights 13 2020 e00169 10.1016/j.jbvi.2020.e00169 · DOI
  11. [12]Remane G. Hanelt A. Nickerson R.C. Kolbe L.M. Discovering digital business models in traditional industries J. Bus. Strat. 38 2017 41 51 10.1108/JBS-10-2016-0127 · DOI
  12. [13]Seetharaman P. Business models shifts: Impact of Covid-19 Int. J. Inf. Manag. 54 2020 102173 10.1016/j.ijinfomgt.2020.102173 32834338 PMC7323683 32834338 · DOI · Paper page
  13. [14]Snihur Y. Wiklund J. Searching for innovation: Product, process, and business model innovations and search behavior in established firms Long Range Plan. 52 2019 305 325 10.1016/j.lrp.2018.05.003 · DOI
  14. [15]Fletcher G. Griffiths M. Digital transformation during a lockdown Int. J. Inf. Manag. 2020 in press 10.1016/j.ijinfomgt.2020.102185 32836642 PMC7333595 32836642 · DOI · Paper page
  15. [17]Egfjord K.F.H. Sund K.J. Do you see what I see? How differing perceptions of the environment can hinder radical business model innovation Technol. Forecast. Soc. Chang. 150 2020 119787 10.1016/j.techfore.2019.119787 · DOI
  16. [18]Leih S. Linden G. Teece D.J. Business model innovation and organizational design: A dynamic capabilities perspective Foss N.J. Saebi T. 1st ed. Business Model Innovation: The Organizational Dimension 2015 Oxford University Press Oxford, UK 1 19
  17. [20]Teece D.J. Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance Strat. Manag. J. 28 2007 1319 1350 10.1002/smj.640 · DOI · Paper page
  18. [21]Winterhalter S. Zeschky M.B. Gassmann O. Managing dual business models in emerging markets: An ambidexterity perspective R&D Manag. 46 2015 464 479 10.1111/radm.12151 · DOI
  19. [22]Sohl T. Vroom G. Fitza M.A. How much does business model matter for firm performance? A variance decomposition analysis Acad. Manag. Discov. 6 2020 61 80 10.5465/amd.2017.0136 · DOI
  20. [23]Svahn F. Mathiassen L. Lindgren R. Embracing digital innovation in incumbent firms: How Volvo cars managed competing concerns MIS Q. 41 2017 239 253 10.25300/MISQ/2017/41.1.12 · DOI
  21. [24]Hasenpusch T.C. Baumann S. Strategic media venturing: Corporate venture capital approaches of TIME incumbents Int. J. Media Manag. 19 2017 77 100 10.1080/14241277.2017.1280040 · DOI
  22. [26]Osterwalder A. Pigneur Y. 2010 John Wiley & Sons Hoboken, NJ, USA
  23. [27]Björkdahl J. Technology cross-fertilization and the business model: The case of integrating ICTs in mechanical engineering products Res. Policy 38 2009 1468 1477 10.1016/j.respol.2009.07.006 · DOI
  24. [28]Teece D.J. Business models, business strategy and innovation Long Range Plan. 43 2010 172 194 10.1016/j.lrp.2009.07.003 · DOI · Paper page
  25. [30]Teece D.J. Business models and dynamic capabilities Long Range Plan. 51 2018 40 49 10.1016/j.lrp.2017.06.007 · DOI · Paper page
  26. [31]Thorgren S. Williams T.A. Staying alive during an unfolding crisis: How SMEs ward off impending disaster J. Bus. Ventur. Insights 14 2020 e00187 10.1016/j.jbvi.2020.e00187 · DOI
  27. [32]Turner J. Akinremi T. The business effects of pandemics—A rapid literature review ERC Insight Paper 2020 University of Warwick Coventry, UK
  28. [33]Linnenluecke M.K. McKnight B. Community resilience to natural disasters: The role of disaster entrepreneurship J. Enterprising Communities People Places Glob. Econ. 11 2017 166 185 10.1108/JEC-01-2015-0005 · DOI
  29. [34]Day G.S. Schoemaker P.J.H. Adapting to fast-changing markets and technologies Calif. Manag. Rev. 58 2016 59 78 10.1525/cmr.2016.58.4.59 · DOI
  30. [35]Yun J.J. 2017 Springer Singapore
  31. [37]Yun J.J. Won D. Park K. Entrepreneurial cyclical dynamics of open innovation J. Evol. Econ. 28 2018 1151 1174 10.1007/s00191-018-0596-y · DOI
  32. [38]Chesbrough H. Business model innovation: Opportunities and barriers Long Range Plan. 43 2010 354 363 10.1016/j.lrp.2009.07.010 · DOI · Paper page
  33. [39]Chiaroni D. Chiesa V. Frattini F. The open innovation journey: How firms dynamically implement the emerging innovation management paradigm Technovation 31 2011 34 43 10.1016/j.technovation.2009.08.007 · DOI · Paper page
  34. [40]Yun J.J. Liu Z. Micro-and macro-dynamics of open innovation with a quadruple-helix model Sustainability 11 2019 10.3390/su11123301 · DOI
  35. [41]Yin R.K. 4th ed. 2014 Sage Publications, Inc. London, UK
  36. [42]Eisenhardt K.M. Better stories and better constructs: The case for rigor and comparative logic Acad. Manag. Rev. 16 1991 620 627 10.5465/amr.1991.4279496 · DOI
  37. [43]Edmondson A.C. McManus S.E. Methodological fit in management field research Acad. Manag. Rev. 32 2007 1155 1179 10.5465/amr.2007.26586086 · DOI
  38. [44]Eisenhardt K.M. Ott T.E. Rigor in theory building from multiple cases Mir R. Jain S. 1st ed. The Routledge Companion to Qualitative Research in Organization Studies 2017 Routledge New York, NY, USA 79 91
  39. [46]Volmar E. Eisenhardt K.M. Case study research: A state-of-the-art perspective Aldag R.J. Oxford Research Encyclopedia of Business and Management 2020 Oxford University Press Oxford, UK 1 20 10.1093/acrefore/9780190224851.013.206 · DOI
  40. [47]Eisenhardt K.M. Graebner M.E. Theory building from cases: Opportunities and challenges Acad. Manag. J. 50 2007 25 32 10.5465/amj.2007.24160888 · DOI · Paper page
  41. [48]Glaser B.G. Strauss A.L. 1967 Routledge Publisher New York, NY, USA
  42. [49]Bamford D. The use of grounded theory in change management research J. Chang. Manag. 8 2008 111 121 10.1080/14697010801907286 · DOI
  43. [50]Hall G.E. Loucks S.F. Rutherford W.L. Newlove B.W. Levels of use of the innovation: A framework for analyzing innovation adoption J. Teach. Educ. 26 1975 52 56 10.1177/002248717502600114 · DOI
  44. [51]Teece D. Peteraf M. Leih S. Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy Calif. Manag. Rev. 58 2016 13 35 10.1525/cmr.2016.58.4.13 · DOI · Paper page
  45. [52]Guenzi P. Habel J. Mastering the digital transformation of sales Calif. Manag. Rev. 2020 10.1177/0008125620931857 · DOI
  46. [53]Berman S.J. Digital transformation: Opportunities to create new business models Strat. Leadersh. 40 2012 16 24 10.1108/10878571211209314 · DOI

Cited by

Sorted by citations

Authors
Priyono, A., Moin, A., & Putri, V. N. A. O.
Affiliations
Islamic University of Indonesia (ID)
Corresponding author
Priyono, Anjar
ORCID
Venue
Journal of Open Innovation: Technology, Market, and Complexity
Publisher
Elsevier BV
Published
2020-12
Volume
6
Issue
4
Pages
104
ISSN
2199-8531 (ISSN-L)
DOI
10.3390/joitmc6040104
PMC
PMC9906477
OpenAlex
W3089517677
Cited by
702
References
4
Citations by year
2026: 44 · 2025: 89 · 2024: 153 · 2023: 159 · 2022: 153 · 2021: 90 · 2020: 14
FWCI
156.76
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of Open Innovation Technology Market and Complexity (publishedVersion, cc-by-nc-nd)
  • PubMed Central (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
  • Econstor (Econstor) (submittedVersion, cc-by)
Topics
  • Social Sciences › Demography › SMEs Development and Digital Marketing
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
Keywords
digital transformation, business model innovation, small and medium-sized enterprises, COVID-19 pandemic, manufacturing SMEs, digital maturity, digital literacy, social capital, liquidity constraints, partner collaboration, contextual factors

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review