Digital transformation to enhance Indonesian SME performance: Exploring the impact of market competition and digital strategy

From a global perspective, the business environment has become highly dynamic, unpredictable, and competitive due to external forces – mostly technology – that generate change. The aim of this study is to investigate the influence of digital technologies on South African business sectors. The sample includes small and medium enterprises (SMEs) in the KwaZulu-Natal province. Being qualitative by design, the study used semi-structured interviews for data collection, with eight interviews in the Durban area. SME managers were purposefully selected as participants based on their management positions in the business/company and that they oversee the business operation and understand the influence of digital transformation in the business. The interviews were then transcribed after data collection to determine any recurring themes. In the effectiveness of digital transformation, the study identified themes such as “gaining exposure” and “gaining effective sales figures” as a result of implementing digital transformation, which was indicated by six of eight participants. The findings showed that digital transformation significantly affects building customer relationships and ensuring easy accessibility of the business. The results further indicate online selling and digital marketing as the leading digital platforms successfully implemented by most South African SMEs. Lastly, the study revealed digital maintenance and rapid changes in technology as challenging factors. Moreover, the study recommends that South African SMEs implement more available digital technologies to gain additional exposure.

Currently, Internet penetration is accelerating across the country in Bangladesh, which, in particular, has led to the simultaneous development and growth of online businesses. Due to increased internet availability and accessibility, a number of small and medium enterprises (SMEs) continue to operate using an Internet-driven online platform. This context requires a research effort to investigate the underlying factors that might influence the business performance of online SMEs. Thus, the aim of the study is to examine the impact of e-marketing orientation (EMO), technology orientation (TO), and learning capability (LC) on online SME performance in the context of Bangladesh. In this study, the dependent variable is online SME performance, whereas the independent variables are EMO, TO and LC. To achieve this objective, the study developed a questionnaire based on past literature. Following a non-probability random sampling approach, 320 survey forms were distributed among online SME owners using the online survey system (Google form), and finally 156 responses were realized as fully complete responses. Hence, the study sample size is n = 156. SPSS version no. 26 was used to analyze the correlation among independent and dependent variables and to test the hypotheses. During statistical analysis, the 5% significance level is used as a threshold value to accept hypotheses. The study results show that EMO, TO and LC have a statistical and significant impact on online SME performance. Finally, this paper seeks to outline several important implications for online SME owners, as well as suggest several directions for future research.

The paper analyzes the impact of retail transformation on the consumers’ expectations and behavior in the electronic environment and identifies the main directions of digitalization of the marketing activities of domestic retail enterprises at each stage of the purchasing decision-making process. It also systematizes the consumer expectations in the context of the digital transformation of retail, which made it possible to establish the importance of managing customer acquisition for retailers and demonstrated how technology changes the way customers purchase. The results of an online study of the impact of marketing efforts in retail outlets to highlight digital transformation tools at every stage of consumer decision-making by consumers are presented and the main directions of digitalization of marketing activities of domestic retail enterprises are summarized. The legitimacy of taking consumer expectations into account when determining the impact on the business model of retailers, returning it to the plane of mobility, digitalizing the purchase process, and the integration of digital and physical trading, has been proven. It is suggested to consider the main areas of digital transformation as digital interaction with customers, innovation in the development of products and services, distribution channels, marketing and sales; digital implementation, risk optimization, strengthening corporate control, intelligent information management and customer service, managing customer and contact center experience, customer relationship management. This made it possible to specify promising areas of digital transformation in the retail industry, in particular, optimizing human resources, creating new ways of cooperation, attracting labor and assistance (flexible work, social cooperation, corporate cooperation, integrated communications), as well as employee training for the retail industry.