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Digital readiness of small and medium enterprises in emerging markets: The construct, propositions, measurement, and implications

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  • Pingali, Srinivas R.
  • Singha, Sumanta
  • Arunachalam, S.
  • Pedada, Kiran

Abstract

Digital readiness is becoming increasingly critical for resource-constrained small and medium enterprises (SMEs) to remain competitive. However, despite its necessity, there is a limited understanding of the digital readiness of SMEs, especially in emerging markets. Employing a multi-study, multi-method approach involving qualitative interviews and quantitative surveys with SME owners in emerging markets (E-SMEs), this work conceptualizes the digital readiness of E-SMEs and identifies its key drivers. In Study 1, using a qualitative grounded-theory approach, we identify five themes and offer 11 propositions elaborating on the key factors that affect E-SMEs’ digital readiness. In Studies 2 and 3, using surveys, we develop, test, and validate a multi-item measurement scale of digital readiness characterized by three dimensions: technological sensemaking, agility, and implementation. We draw important insights from our studies and discuss their managerial and policy implications for E-SMEs.

Suggested Citation

  • Pingali, Srinivas R. & Singha, Sumanta & Arunachalam, S. & Pedada, Kiran, 2023. "Digital readiness of small and medium enterprises in emerging markets: The construct, propositions, measurement, and implications," Journal of Business Research, Elsevier, vol. 164(C).
    • Handle: RePEc:eee:jbrese:v:164:y:2023:i:c:s0148296323003314
    DOI: 10.1016/j.jbusres.2023.113973
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    Cited by:

    1. Xie, Yu & Wu, Desheng, 2024. "How does competition policy affect enterprise digitization? Dual perspectives of digital commitment and digital innovation," Journal of Business Research, Elsevier, vol. 178(C).
    2. Chwiłkowska-Kubala, Anna & Cyfert, Szymon & Malewska, Kamila & Mierzejewska, Katarzyna & Szumowski, Witold, 2023. "The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation," Technology in Society, Elsevier, vol. 74(C).

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