DIGITAL TRANSFORMATION CAPABILITY AND MSME RESILIENCE:AN INTEGRATIVE FRAMEWORK FOR SUSTAINABLE BUSINESS ADAPTATION

Authors

  • Anggun Yolistina Yayasan Kreatif Indonesia Emas, Bandung, 40281, Indonesia Author
  • Nida Garnida Fitrianti Organisasi Kreatif Indonesia Emas Author

Keywords:

Digital Transformation, MSMEs, Organizational Resilience, Dynamic Capabilities, Business Adaptation

Abstract

Background: Digital transformation has become an important pathway through which micro, small, and medium enterprises (MSMEs) improve market access, operational visibility, customer interaction, and organizational flexibility. Yet technology adoption alone does not guarantee resilience. The value of digitalization depends on managerial capability, organizational learning, resource orchestration, cybersecurity awareness, and the ability to integrate digital tools with business processes.

Aims: This article develops an integrative framework explaining how digital transformation capability can contribute to MSME resilience and sustainable business adaptation.

Research Method: The study uses an integrative conceptual review of literature on digital transformation, dynamic capabilities, organizational resilience, digital entrepreneurship, and SME adaptation. It presents no fabricated survey, interview, experimental, or statistical data.

Results and Conclusion: The synthesis suggests that resilient digital transformation requires five connected capabilities: digital sensing, selective technology adoption, process integration, data-informed decision making, and adaptive reconfiguration. Digital tools strengthen resilience when they diversify market channels, improve information quality, reduce critical dependencies, and accelerate organizational learning. Unmanaged digital dependence may instead create platform, cybersecurity, financial, and capability risks.

Contribution: The paper proposes a Digital Transformation-to-Resilience Framework and a practical capability matrix for future empirical testing and MSME development programs.

Downloads

Download data is not yet available.

References

Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471-482. https://doi.org/10.25300/MISQ/2013/37:2.3

Duchek, S. (2020). Organizational resilience: A capability-based conceptualization. Business Research, 13, 215-246. https://doi.org/10.1007/s40685-019-0085-7

Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21(3), 243-255. https://doi.org/10.1016/j.hrmr.2010.07.001

Li, L., Su, F., Zhang, W., & Mao, J.-Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129-1157. https://doi.org/10.1111/isj.12153

Nambisan, S. (2017). Digital entrepreneurship: Toward a digital technology perspective of entrepreneurship. Entrepreneurship Theory and Practice, 41(6), 1029-1055. https://doi.org/10.1111/etap.12254

Park, J.-H., & Seo, R. (2024). A contingent value of bricolage strategy on SMEs' organizational resilience: Lessons from the COVID-19 pandemic. Humanities and Social Sciences Communications, 11, 263. https://doi.org/10.1057/s41599-024-02771-6

Sahu, C. K. (2024). Evaluating the relationship between entrepreneurial ecosystem, resilience and SME performance in post-pandemic period. Journal of Entrepreneurship and Public Policy, 13(3), 491-506. https://doi.org/10.1108/JEPP-12-2023-0136

Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350. https://doi.org/10.1002/smj.640

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144. https://doi.org/10.1016/j.jsis.2019.01.003

Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349. https://doi.org/10.1016/j.lrp.2018.12.001

Downloads

Published

2024-06-01

How to Cite

DIGITAL TRANSFORMATION CAPABILITY AND MSME RESILIENCE:AN INTEGRATIVE FRAMEWORK FOR SUSTAINABLE BUSINESS ADAPTATION. (2024). Journal of Jabar Economic Society Networking Forum, 1(7), 37-47. https://jesocin.com/index.php/jesocin/article/view/57

Most read articles by the same author(s)

1 2 > >> 

Similar Articles

1-10 of 75

You may also start an advanced similarity search for this article.