Sustainable Growth Variables by Industry Sectors and Their Influence on Changes in Business Models of SMEs in the Era of Digital Transformation

SMEs around the world are constantly under threats to their survival and sustainable growth. This study evaluated the variables influencing the sustainable growth of SMEs in the technological evolution of digital transformation. I propose a business model innovation strategy for the sustainable grow...

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Bibliographic Details
Published inSustainability Vol. 13; no. 13; p. 7114
Main Author KIM, Seok-Soo
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.07.2021
Subjects
Big Data
Business models
Competition
Competitive advantage
Digital technology
Digitization
Entrepreneurs
Entrepreneurship
Innovations
Internet of Things
Least squares method
Small business
Statistical analysis
Success
Sustainability
Transformations
Value chain
Value creation
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Summary:SMEs around the world are constantly under threats to their survival and sustainable growth. This study evaluated the variables influencing the sustainable growth of SMEs in the technological evolution of digital transformation. I propose a business model innovation strategy for the sustainable growth of SMEs. Furthermore, I evaluated the variables influencing growth by industry sector and present strategies for innovation in the business model. Data were collected from 205 CEOs in six sector industries in Korea, and I investigated the effect of variables that affected the company’s sustainability when introducing digital transformation. A partial least-squares regression was used for the statistical analysis and was performed using a data group analysis. I found that the SME performance varied by industry and that technological competency had a mediating effect. The variables that most affected the SME performance were management, technology, and technical competence in marketing and innovation. This research went beyond the limitations of studying only the effects of each of the previous literature variables through causal studies linking these variables. The variables affecting the performance of the industries were found to be different. By comparing the variables that led to a difference in performance in the industrial sector, I developed a business model innovation strategy that can affect the sustainable performance of SMEs.
ISSN:2071-1050
2071-1050
DOI:10.3390/su13137114