Exploring the process of SMEs employing digital transformation to cope with the Covid-19 crisis

The purpose of this study is to explore how small and medium-sized enterprises (SMEs) utilize digital transformation to respond to Covid-19 crisis and examine if digital transformation impels their digital innovation performance. Three level analysis including firm, industry and region is applied into this study. Multiple case study is used to collect data from European SMEs through interviews to depict the process framework of digital transformation. Quantitative analysis is used to examine how digital transformation impels digital innovation performance in manufacturing in Belgium and China. The findings are based on the existing literatures and extend this theoretical framework of this process in relation to four dimensions including the financial issues, organizational changes, uses of digital technologies and reshaping value. Besides, the challenges and drivers involved in these four aspects in this process are identified. This study contributes to put forward an applicable framework for SMEs to carry out digital transformation in the field of technology and innovation, thereby, promoting their proceeding of digital transformation projects in the post-Covid-19. Eastern and western perspectives provide more applicable implications for digital innovation performance of SMEs.