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Digital Transformation of Small and Medium Enterprises: Aspects of Public Support

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  • Ramona Rupeika-Apoga

    (Faculty of Business, Management and Economics, University of Latvia, LV-1050 Riga, Latvia)

  • Larisa Bule

    (Faculty of Business, Management and Economics, University of Latvia, LV-1050 Riga, Latvia)

  • Kristine Petrovska

    (Faculty of Business, Management and Economics, University of Latvia, LV-1050 Riga, Latvia)

Abstract

The purpose of this study is to identify the necessary public support measures for small and medium-sized enterprises (SMEs) and provide policy makers with guidance on how to facilitate a successful digital transformation. The study is based on a representative survey of 425 Latvian SMEs carried out in spring 2021. We combine three analyses: a survey among SMEs, qualitative comparative analysis and regression analysis. The results of this study show that a significant number of SMEs are convinced that they will not be able to cope with digital transformation without various kinds of assistance, with direct financial support from the state or EU funds and tax incentives playing a major role. The range of public support required is rather wide, from staff training, mentoring and increasing the potential workforce to tax relief and direct financial support. We found statistically significant differences in public support needed depending on the size of SMEs and their ability to independently manage digital transformation. These findings could be useful for policymakers, managers and practitioners to identify various forms of public support that can maximize the impact of digital transformation not only on business, but also on society as a whole.

Suggested Citation

  • Ramona Rupeika-Apoga & Larisa Bule & Kristine Petrovska, 2022. "Digital Transformation of Small and Medium Enterprises: Aspects of Public Support," JRFM, MDPI, vol. 15(2), pages 1-21, January.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:2:p:45-:d:729022
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    References listed on IDEAS

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    2. Jaroslava Kádárová & Laura Lachvajderová & Dominika Sukopová, 2023. "Impact of Digitalization on SME Performance of the EU27: Panel Data Analysis," Sustainability, MDPI, vol. 15(13), pages 1-19, June.
    3. Fernando Almeida & José Morais & José Duarte Santos, 2022. "A Bibliometric Analysis of the Scientific Outcomes of European Projects on the Digital Transformation of SMEs," Publications, MDPI, vol. 10(4), pages 1-18, September.
    4. Cristian-Mihai Vidu & Florina Pinzaru & Andreea Mitan, 2022. "What managers of SMEs in the CEE region should know about challenges of artificial intelligence’s adoption? – an introductive discussion," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 1, pages 63-76.
    5. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    6. Ramona Rupeika-Apoga & Kristine Petrovska, 2022. "Barriers to Sustainable Digital Transformation in Micro-, Small-, and Medium-Sized Enterprises," Sustainability, MDPI, vol. 14(20), pages 1-19, October.

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