Management Strategies for SMEs in the Era of Digital Transformation

Kai Li

doi:10.71204/aegpvn80

Authors

Kai Li Hunan College of Foreign Studies Author

DOI:

https://doi.org/10.71204/aegpvn80

Keywords:

SMEs, Digital Transformation, Management Strategy, Dynamic Capabilities, Innovation, Small Business, Organizational Change

Abstract

Small and medium-sized enterprises (SMEs) are pivotal to economic growth, yet many struggle to navigate the ongoing wave of digital transformation. This paper provides an analytical overview of management strategies that enable SMEs to thrive in the digital era. The authors outline the opportunities digital technologies offer to SMEs—such as operational efficiencies, access to new markets, and resilience gains—alongside the challenges these firms face, including limited resources, skill gaps, and resistance to change. Drawing on recent literature (2019–2024), the authors identify critical factors for successful SME digital transformation and propose a structured approach for managers. Key strategies include developing a clear digital transformation roadmap aligned with business goals, investing in employee digital skills and a pro-innovation culture, leveraging external support (partnerships, platforms, and government initiatives), and fostering agility through continuous improvement and adaptation. This structured approach, grounded in dynamic capabilities theory, helps SMEs overcome resource constraints and uncertainty to achieve sustainable competitive advantage in the digital age. The findings offer practical guidance for SME managers and contribute to the academic discourse on how small businesses can effectively manage digital transformation in an ever-evolving technological landscape.

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