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Building and development of an organizational competence for digital transformation in SMEs
Jose M Gonzalez-Varona, Adolfo Lopez-Paredes, David Poza, Fernando Acebes
TL;DR
SMEs need organizational capabilities to navigate digital transformation despite resource and specialization constraints, yet prior research has focused more on processes than capabilities. This study combines a literature review with six semi-structured expert interviews to refine an OCDT model, finding that organizational learning and knowledge are important for advancing SME digital transformation.
Problem
SMEs’ limited resources and specialization constrain digital-capability development, while research has focused mainly on processes rather than capabilities.
Method
The study reviewed digital-transformation and organizational-competence literature and refined an OCDT model through semi-structured interviews with six experts.
Results
The study developed a refined OCDT model that helps SMEs identify and develop digital capabilities for advancing digital transformation.
Takeaways & Limitations
Organizational learning and organizational knowledge are important for advancing SMEs’ digital transformation and digital maturity.
Takeaways & Limitations
Interview data may be influenced by the way researchers interact with interviewees, and future work should clarify causal links among competence elements.
Abstract
from arXiv · showhide
Purpose: The new competitive environment characterized by innovation and constant change is forcing a new organizational behavior. This requires a digital transformation of SMEs based on collective performance determinants. SMEs have particular characteristics that differentiate them from large companies and a model that allows them to identify, leverage and develop their digital capabilities can help them to advance in digital maturity. Design/methodology/approach: An in-depth review of the existing literature on digital transformation and organizational competence was carried out on Scopus and Web of Science to identify the digital challenges faced by SMEs, and what digital capabilities they have to develop to face these challenges. In order to obtain the necessary information for the refinement of organizational competence for digital transformation model, six experts were interviewed; three of them are academics and the other three are professionals with management responsibilities in SMEs. We used semi-structured interviews, to keep the interviews focused and facilitate cross-data analysis between experts. In addition, it allowed us the possibility of analyzing new relevant aspects that could arise during the interview. Findings: As a result of this study we have developed a refined model of organizational competence for digital transformation that allows SMEs to identify and develop the digital capabilities necessary to advance in the digital transformation, refined with the opinions of six experts consulted. We were able to observe the importance of organizational learning and organizational knowledge to advance the digital transformation of SMEs.
1. Introduction
SMEs face digital-transformation challenges because their limited resources and specialization constrain capability development, while research has focused more on processes than capabilities. The study addresses this gap by developing an expert-refined organizational competence model to help SMEs build digital capabilities and advance digital maturity.
- Digital transformation requires SMEs to develop capabilities that support flexibility, responsiveness, new customer value propositions, and changed operating models.
- Business leaders increasingly recognize digital transformation as necessary and seek models adapted to their companies’ characteristics.
- SMEs’ limited resources and specialization capabilities disadvantage their development of digital capabilities, while existing research remains scarce and process-focused.
- The study develops an organizational competence for digital transformation model refined through expert opinions to support SMEs’ digital-capability development.
- The model is intended to clarify how capability building can advance digital maturity and contribute to effective, continuous digital transformation.
2. Theoretical Background
Digital transformation changes products, processes, structures, capabilities, and business concepts, so technology adoption alone is insufficient for competitive advantage. Organizational competence links coordinated assets and capabilities to objectives, while SME digital capability represents readiness to drive a digital agenda and reach digital maturity.
- Digital transformation involves significant technology-enabled changes to organizational properties, including products, processes, structures, capabilities, and business concepts.
- SMEs cannot rely on adopting digital technologies alone because competitive advantage depends on combining them with organizational capabilities.
- Organizational competence is the coordinated deployment of assets that helps a company achieve its objectives.
- Javidan’s hierarchy distinguishes resources as inputs, capabilities as resource-exploiting processes and routines, competencies as multifunctional integration, and core competencies at the highest level.
- For SMEs, digital capability is organizational readiness to drive the digital agenda and become a digital company, supporting transition toward digital maturity.
3. Research Design and OCDT Development
The OCDT model was developed from a literature review of SME digital-transformation challenges and capabilities, then refined through six expert interviews. It adapts the competence hierarchy to SME characteristics and organizes resources and capabilities for advancing digital transformation.
- The study reviewed Scopus and Web of Science literature to identify SME digital-transformation challenges and the capabilities needed to address them.
- The review selected 72 relevant articles and added 18 from an additional search, reading all selected articles in full.
- The OCDT model was based on Javidan’s competence hierarchy and refined using semi-structured interviews with six experts.
- The model focuses on SMEs’ internal transformation, including managerial and employee decisions, organizational structure, and work organization.
- The model represents physical, human, and organizational resources as competence elements, with capabilities describing how SMEs exploit those resources.
- The resulting OCDT model is intended to help SMEs identify and develop digital capabilities while reflecting SME-specific characteristics better than large-company maturity models.
4. Framework Refinement
The OCDT model was refined through semi-structured interviews with six experts, combining academic and SME management perspectives. The refinement emphasized management support, employee and technological factors, information culture, and alignment with strategy.
- Framework Refinement: Six experts—three academics and three SME professionals—evaluated the model’s validity, dimensions, competence elements, and usefulness for SME decision-making.Interviews were conducted using a predefined, semi-structured approach to support cross-expert comparison while allowing new aspects to emerge.
- Findings: Management support, clear leadership, and strategic commitment were identified as central organizational factors for advancing SMEs’ digital transformation.Interviewees linked management philosophy, senior-management commitment, and the SME’s vision and strategy to acceptance of digital change.
- Findings: The refined model added information as a competence element within the culture dimension because SMEs need relevant, high-quality information to flow among employees.Interviewees specifically identified open information exchange as important for developing the OCDT.
- Findings: Reliable technologies adapted to SMEs’ real needs, external competitiveness, and management maturity were also identified as factors supporting digital transformation.Interviewees connected technology acceptance to perceived reliability and usefulness, while competition and maturity were described as enabling conditions.
- Findings: Employee capabilities were associated with training, personal innovation, curiosity, confidence with technology, willingness to change, and varied personal profiles.The interviews emphasized that individual characteristics influence how employees develop and use digital capabilities.
- Findings: The model defines OCDT as SMEs’ ability to integrate people, resources, technology, processes, structure, and culture through supportive governance and strategy aligned with organizational objectives.Its stated purpose is continuous progress in digital maturity and a basis for competitive advantage.
5. Conclusion
The refined OCDT model helps SMEs identify and develop digital capabilities, supporting digital maturity through organizational competencies, culture, systemic process views, and learning. It also positions organizational knowledge as a strategic resource while identifying needs for further validation and development.
- The OCDT model enables SMEs to identify and develop digital capabilities needed to advance digital maturity.
- The model supports strategic objectives and resource assignment through organizational culture, a systemic process view, and organizational learning.
- Organizational knowledge is identified as a strategic resource for forming competence elements and advancing OCDT maturity.
- Future research should clarify causal relationships among competence elements and the dynamics of organizational learning and training.
- Further interviews, case studies, and implementation-based research are proposed to test the model’s viability and usefulness.
Funding
The authors report no financial support for the research, authorship, or publication of the article.
- The authors received no financial support for the research.
- The authors received no financial support for authorship.
- The authors received no financial support for publication.