Exploring the determinants of digital transformation in its different stages in Dutch SMEs: A digital dynamic capabilities perspective

Abstract

Digital transformation (DT) has become a crucial strategic imperative for organizations seeking to thrive in the rapidly evolving business environment. While digital transformation has been extensively studied in large organizations, there remains a need for more available evidence in the context of (Dutch) SMEs and how organizations go through different DT phases. This dissertation aims to address this gap by adopting a digital dynamic capabilities perspective to explore the determinants of digital transformation in Dutch SMEs and investigate how these determinants change over the different digital transformation phases. This thesis has met these aims by integrating an extensive review of the relevant literature and implementing a qualitative study. The latter includes nine interviews with experts from different Dutch SMEs and an expert panel to validate these findings. The primary conclusions produced by this study include five internal determinants, five external determinants, three sub-capabilities, each of the sensing, seizing, transforming, and safeguarding digital dynamic capability clusters, and five desired digital transformation outcomes. ‘Digital safeguarding’ has emerged as a novel capability cluster focusing on skills required from the implementation onwards. In conclusion, this study has contributed to a deeper understanding of the differences in the digital transformation determinants and capabilities between large organizations and SMEs. Moreover, this thesis has identified that boundaries between the different digital transformation phases could be fading due to the continuity of digital transformation. Simultaneously, this research has practical relevance as these findings could support Dutch SMEs in navigating their digital transformations. Alternatively, the study could help Joanknecht, a Dutch financial advisory firm, improve its consultancy services. Looking ahead, future researchers should seek to validate and expand upon the presented findings.