From Pixels to Profits: Configurations of Digital Alchemy for SMEs Excellence

Abstract

In an era characterized by rapid technological advancements, the integration of digitalization within SMEs has redefined their operational paradigms. This study aims to illuminate the complex configurations that underlie the path towards business excellence through a comprehensive investigation encompassing diverse dimensions of digitalization and digital capabilities. Data acquisition transpires through a questionnaire administered to SMEs' owners, managers and CEOs. The study embarked on a configurational analysis through fsQCA. The findings unveil a spectrum of configurations, each shedding light on the configurations of core and peripheral conditions that frame SMEs' non-financial performance. Amidst different configurations, the prominence of innovation capabilities across solutions and the consistent presence of digital innovation emphasize their pivotal roles in influencing SMEs' non-financial performance. The study recommends making a comprehensive strategy encompassing digital transformation and innovation, collaboration, and technical capabilities to establish an ecosystem where SMEs harness the full potential of digital alchemy for enhanced performance.