Digitalization of SMEs : an ecosystem-based perspective

Over the last decade, digital technologies have been able to strike disruptive changes in the contemporary business landscape and so affecting small and medium enterprises (SMEs). SMEs have limited R&D, financial and human resources to invest in their digitalization process. In this research, we contextualize that SMEs can enhance their digitalization by collaborating with different actors of the ecosystem i.e., competing SMEs, higher education institutions (HEIs), co-creating with customers and utilizing support and facilitation activities provided by intermediary organizations. Therefore, our main research question is “How do SMEs enhance their digitalization through engaging with ecosystem-based dynamic collaborations?” To answer the research question, we conducted qualitative multiple case study research based on semi-structured interviews with the Northern Finland innovation ecosystem actors. The results confirm that ecosystem-based interactions enhance SMEs’ digital competencies, and digital orientation and help them in emerging technology adoption which eventually leads them to maintain competitive advantage and achieve business model innovation.