Evaluating digital transformation in small and medium enterprises using the Alkire-Foster method

The digital technology transition fosters the flexibility of companies and their ability to respond quickly to market changes. However, Small and Medium-sized Enterprises (SMEs) seem to be particularly challenged by digital transformation. The Alkire-Foster (AF) method was employed to analyze the in...

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Main Authors: Luís L. Moreira, Sofia S. Pinto, Leonardo Costa, Nuno Araújo
Format: Article
Language:English
Published: Elsevier 2025-01-01
Series:Heliyon
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Online Access:http://www.sciencedirect.com/science/article/pii/S240584402500218X
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author Luís L. Moreira
Sofia S. Pinto
Leonardo Costa
Nuno Araújo
author_facet Luís L. Moreira
Sofia S. Pinto
Leonardo Costa
Nuno Araújo
author_sort Luís L. Moreira
collection DOAJ
description The digital technology transition fosters the flexibility of companies and their ability to respond quickly to market changes. However, Small and Medium-sized Enterprises (SMEs) seem to be particularly challenged by digital transformation. The Alkire-Foster (AF) method was employed to analyze the integration profiles of digital technology in SMEs. Individual and group average partial and composite indicators were computed, as well as group measures of digital technology integration, to benchmark individual companies and groups. Additionally, a linear regression was used to examine how individual overall composite scores of digital technology integration are influenced by dimensions of individual digital technology integration enablers and other contextual variables. The results indicate that most companies possess the digital infrastructure necessary for this integration. However, there is room for improvement in terms of supply and demand of digital skills. This study contributes to research by applying an existing tool, the AF method, in a novel context: measuring digital technology integration in SMEs. The AF method facilitates effective benchmarking at both individual and group levels.
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spelling doaj-art-fe19273a28bc4975b69da716dd9b9b142025-02-02T05:28:20ZengElsevierHeliyon2405-84402025-01-01112e41838Evaluating digital transformation in small and medium enterprises using the Alkire-Foster methodLuís L. Moreira0Sofia S. Pinto1Leonardo Costa2Nuno Araújo3Universidade Católica Portuguesa, Católica Porto Business School, PortugalUniversidade Católica Portuguesa, Católica Porto Business School, PortugalUniversidade Católica Portuguesa, Católica Porto Business School, Research Centre in Management and Economics, Portugal; Corresponding author. Universidade Católica Portuguesa Rua Diogo Botelho, 1327, 4169-005, Porto, Portugal.CATIM - Technological Centre for the Metalworking Industry, PortugalThe digital technology transition fosters the flexibility of companies and their ability to respond quickly to market changes. However, Small and Medium-sized Enterprises (SMEs) seem to be particularly challenged by digital transformation. The Alkire-Foster (AF) method was employed to analyze the integration profiles of digital technology in SMEs. Individual and group average partial and composite indicators were computed, as well as group measures of digital technology integration, to benchmark individual companies and groups. Additionally, a linear regression was used to examine how individual overall composite scores of digital technology integration are influenced by dimensions of individual digital technology integration enablers and other contextual variables. The results indicate that most companies possess the digital infrastructure necessary for this integration. However, there is room for improvement in terms of supply and demand of digital skills. This study contributes to research by applying an existing tool, the AF method, in a novel context: measuring digital technology integration in SMEs. The AF method facilitates effective benchmarking at both individual and group levels.http://www.sciencedirect.com/science/article/pii/S240584402500218XO330
spellingShingle Luís L. Moreira
Sofia S. Pinto
Leonardo Costa
Nuno Araújo
Evaluating digital transformation in small and medium enterprises using the Alkire-Foster method
Heliyon
O330
title Evaluating digital transformation in small and medium enterprises using the Alkire-Foster method
title_full Evaluating digital transformation in small and medium enterprises using the Alkire-Foster method
title_fullStr Evaluating digital transformation in small and medium enterprises using the Alkire-Foster method
title_full_unstemmed Evaluating digital transformation in small and medium enterprises using the Alkire-Foster method
title_short Evaluating digital transformation in small and medium enterprises using the Alkire-Foster method
title_sort evaluating digital transformation in small and medium enterprises using the alkire foster method
topic O330
url http://www.sciencedirect.com/science/article/pii/S240584402500218X
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