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Cited by 50Digital Economy and TransformationSMEs Development and Digital MarketingDigital Innovation in Industries

Impact of Digitalization on SME Performance of the EU27: Panel Data Analysis

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Kádárová, Jaroslava, Lachvajderová, Laura, Sukopová, Dominika·2023·Sustainability
DOI 10.3390/su15139973
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Abstract

This article explores the relationship between digitalization and business performance in European small- and medium-sized enterprises (SMEs) amidst the COVID-19 pandemic, which has intensified the need for SMEs to adopt digital technologies for enhanced competitiveness. Conducted through a comprehensive literature review, this study investigates the impact of digitalization on SME performance. Employing the statistical software EViews 12, the research utilizes an econometric analysis of panel data to examine the influence of digitalization on SME performance and validate the formulated hypotheses. The dataset comprises 135 observations collected over a five-year period from 27 European countries. A linear regression model is used to test the hypotheses, revealing the relationship between the independent and dependent variables. Model specifications are determined through various tests. This study’s findings demonstrate that the integration of digital technologies and digital intensity significantly drives digitalization in European SMEs, leading to positive impacts on performance. This article emphasizes the importance of digitalization in SMEs for process streamlining, productivity improvement, and enhanced customer experience, ultimately fostering business growth and development. These empirical findings provide valuable evidence for policymakers to prioritize the identification of appropriate measures for stimulating the integration of new digital tools into SME infrastructure and serve as a foundation for future research in this domain.

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  • SMEs often struggle with financial constraints, lack of skilled staff, lower risk tolerance and limited access to funding.

    “SMEs often struggle with financial constraints, lack of skilled staff, lower risk tolerance and limited access to funding.(Kádárová et al., 2023) (Nebati et al., 2023)”

    From Digital transformation: a comparative analysis of SME digital maturity models (2025) · cites this paper as Kádárová et al., 2023

    The Discussion (section 5; page unavailable) describes SMEs as having limited financial and human resources, supporting the financial-constraints and staffing parts of the claim. The Literature Review (section 2; page unavailable) discusses improving access to financing, but the paper does not establish lower risk tolerance or clearly say that SMEs have limited access to funding. (LLM, conf=0.86)

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Authors
Kádárová, J., Lachvajderová, L., & Sukopová, D.
Affiliations
Technical University of Košice (SK)
Corresponding author
Lachvajderová, Laura
ORCID
Venue
Sustainability
Publisher
MDPI AG
Published
2023-06-22
Volume
15
Issue
13
Pages
9973
ISSN
2071-1050 (ISSN-L)
DOI
10.3390/su15139973
OpenAlex
W4381742182
Cited by
50
References
55
Citations by year
2026: 18 · 2025: 19 · 2024: 10 · 2023: 3
FWCI
10.78
Type
journal article
Language
en
Open access
Licence
Locations
  • Sustainability (publishedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
Funders
Vedecká Grantová Agentúra MŠVVaŠ SR a SAV
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Economy and Transformation
  • Social Sciences › Demography › SMEs Development and Digital Marketing
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
Keywords
digitalization, small and medium-sized enterprises, SME performance, digital intensity, digital technologies, COVID-19 pandemic, competitiveness, European SMEs, productivity, business growth

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