Exploring the scope and depth of digitalisation in times of crisis: Implications for SME resilience
Kanhaiya Kumar Sinha, Simon O. Raby, Toktam Salari
Abstract
This article investigates the role of digitalisation in bolstering small- and medium-sized enterprises (SMEs) during crises. Drawing on data from 245 North American SMEs, we examine the impact of digital technology adoption on firm resilience. The findings reveal nuanced relationships: both the depth (Digital Depth) and scope (Digital Scope) of digitalisation exhibit curvilinear associations with resilience (Profit Outlook), suggesting optimal levels for maximum benefits. Moreover, digital depth moderates the relationship between digital scope and resilience, highlighting their interactive role in enhancing adaptive capacities. This research employs a quantitative approach to explore how SMEs can leverage digital tools for resilience. Notably, it highlights the importance of strategic digital investments tailored to industry dynamics for resilience enhancement illustrating the study underscores the practical significance of digital integration for SMEs, indicating its potential to not only restore pre-crisis performance but also foster sustainable growth in the aftermath of disruption.