IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i2d10.1007_s13132-023-01257-1.html
   My bibliography  Save this article

Spatial Patterns and Drivers of SME Digitalisation

Author

Listed:
  • Adelheid Holl

    (CSIC–Consejo Superior de Investigaciones Científicas)

  • Ruth Rama

    (CSIC–Consejo Superior de Investigaciones Científicas)

Abstract

Digital transformation plays an increasingly important role in the growth and competitiveness of small and medium-sized enterprises (SMEs), yet little is known regarding spatial inequalities in their adoption of advanced digital technologies. Using recent data from the Flash Eurobarometer 486, we study the spatial patterns of drivers for the implementation of new digital technologies in SMEs in Europe. In our analysis, the focus is on the possible influence of location. Considerable heterogeneity of SMEs is found in their propensity to adopt advanced digital technologies related to the strength of the local business environment and to the urban/rural hierarchy. Plain English Summary: European SMEs and Digitalisation The adoption of digital technologies favours the competitiveness, resilience, and internationalisation of firms, but SMEs, which form the backbone of the EU economy, are lagging behind. A recent survey reveals that location greatly influences the probability that European SMEs adopt digital technology. Rural and small-town SMEs are less likely to be adopters, even when country, sector, and firm-specific characteristics are taken into account. However, good business environments always encourage the adoption of digitalisation technologies, whatever the geographic location of an SME. Innovators tend to be adopters, especially when they employ green innovation or management innovation. Larger SMEs, companies that are part of a business group, grow more rapidly, and/or export, are all more likely to adopt digital technologies. Policy-makers need to contemplate the urban/rural-divide and promote strong business environments in all types of locations. Public encouragement towards innovation is likely to indirectly promote easier access to digital technologies.

Suggested Citation

  • Adelheid Holl & Ruth Rama, 2024. "Spatial Patterns and Drivers of SME Digitalisation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5625-5649, June.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01257-1
    DOI: 10.1007/s13132-023-01257-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-023-01257-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-023-01257-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Veronika Zavratnik & Andrej Kos & Emilija Stojmenova Duh, 2018. "Smart Villages: Comprehensive Review of Initiatives and Practices," Sustainability, MDPI, vol. 10(7), pages 1-14, July.
    2. Adelheid Holl & Rafael Pardo & Ruth Rama, 2013. "Spatial patterns of adoption of just-in-time manufacturing," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 51-67, March.
    3. Martin Obschonka & David B. Audretsch, 2020. "Artificial intelligence and big data in entrepreneurship: a new era has begun," Small Business Economics, Springer, vol. 55(3), pages 529-539, October.
    4. Yang, Miying & Fu, Mingtao & Zhang, Zihan, 2021. "The adoption of digital technologies in supply chains: Drivers, process and impact," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    5. Dyba, Wojciech & Di Maria, Eleonora & Chiarvesio, Maria, 2022. "Actions fostering the adoption of Industry 4.0 technologies in manufacturing companies in European regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 53, pages 27-46.
    6. Ruth Rama & John Wilkinson, 2019. "Innovation and disruptive technologies in the Brazilian agro-food sector," Post-Print hal-02428960, HAL.
    7. Rosario Michel-Villarreal & Eliseo Luis Vilalta-Perdomo & Maurizio Canavari & Martin Hingley, 2021. "Resilience and Digitalization in Short Food Supply Chains: A Case Study Approach," Sustainability, MDPI, vol. 13(11), pages 1-23, May.
    8. Teruel Carrizosa, Mercedes & Coad, Alexander & Domnick, Clemens & Flachenecker, Florian & Harasztosi, Péter & Janiri, Mario Lorenzo & Pál, Rozália, 2021. "The birth of new high growth enterprises: Internationalisation through new digital technologies," EIB Working Papers 2021/02, European Investment Bank (EIB).
    9. Fossen, Frank M. & Sorgner, Alina, 2021. "Digitalization of work and entry into entrepreneurship," Journal of Business Research, Elsevier, vol. 125(C), pages 548-563.
    10. Rammer, Christian & Schubert, Torben, 2018. "Concentration on the few: mechanisms behind a falling share of innovative firms in Germany," Research Policy, Elsevier, vol. 47(2), pages 379-389.
    11. Christina Rundel & Koen Salemink, 2021. "Hubs, hopes and high stakes for a relatively disadvantaged low tech place," Local Economy, London South Bank University, vol. 36(7-8), pages 650-668, November.
    12. Audretsch, David & Colombelli, Alessandra & Grilli, Luca & Minola, Tommaso & Rasmussen, Einar, 2020. "Innovative start-ups and policy initiatives," Research Policy, Elsevier, vol. 49(10).
    13. Riccardo Lucchetti & Alessandro Sterlacchini, 2004. "The Adoption of ICT among SMEs: Evidence from an Italian Survey," Small Business Economics, Springer, vol. 23(2), pages 151-168, September.
    14. Chirumalla, Koteshwar, 2021. "Building digitally-enabled process innovation in the process industries: A dynamic capabilities approach," Technovation, Elsevier, vol. 105(C).
    15. Blichfeldt, Henrik & Faullant, Rita, 2021. "Performance effects of digital technology adoption and product & service innovation – A process-industry perspective," Technovation, Elsevier, vol. 105(C).
    16. Aaldering, Lukas Jan & Song, Chie Hoon, 2021. "Of leaders and laggards - Towards digitalization of the process industries," Technovation, Elsevier, vol. 105(C).
    17. Laura Norris, 2020. "The spatial implications of rural business digitalization: case studies from Wales," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 7(1), pages 499-510, January.
    18. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, April.
    19. Emmanouil Tranos, 2012. "The Causal Effect of the Internet Infrastructure on the Economic Development of European City Regions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(3), pages 319-337, September.
    20. Anna Giunta & Francesco Trivieri, 2007. "Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1325-1334.
    21. Maryellen Kelley & Susan Helper, 1999. "Firm Size And Capabilities, Regional Agglomeration, And The Adoption Of New Technology," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 79-103.
    22. BENEDETTI FASIL Cristiana & DEL RIO Juan Carlos & DOMNICK Clemens & FAKO Peter & FLACHENECKER Florian & GAVIGAN James & JANIRI Mario & STAMENOV Blagoy & TESTA Giuseppina, 2021. "High Growth Enterprises in the COVID-19 Crisis Context: demographics, environmental innovations, digitalization, finance and policy measures," JRC Research Reports JRC124469, Joint Research Centre.
    23. Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2017. "What drives ICT adoption by SMEs? Evidence from a large-scale survey in Greece," Journal of Business Research, Elsevier, vol. 81(C), pages 60-69.
    24. Usai, A. & Fiano, F. & Messeni Petruzzelli, A. & Paoloni, P. & Farina Briamonte, M. & Orlando, B., 2021. "Unveiling the impact of the adoption of digital technologies on firms’ innovation performance," Journal of Business Research, Elsevier, vol. 133(C), pages 327-336.
    25. Mohamed Kossaï & Maria Luiza Lapa Souza & Younes Ben Zaied & Pascal Nguyen, 2020. "Determinants of the Adoption of Information and Communication Technologies (ICTs): the Case of Tunisian Electrical and Electronics Sector," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 845-864, September.
    26. Zoltan J. Acs & Abraham K. Song & László Szerb & David B. Audretsch & Éva Komlósi, 2021. "The evolution of the global digital platform economy: 1971–2021," Small Business Economics, Springer, vol. 57(4), pages 1629-1659, December.
    27. Anna A. Mikhaylova & Andrey S. Mikhaylov & Dmitry V. Hvaley, 2021. "Receptiveness to innovation during the COVID-19 pandemic: asymmetries in the adoption of digital routines," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 8(1), pages 311-327, January.
    28. Boumediene Ramdani & Siddhartha Raja & Marina Kayumova, 2022. "Digital innovation in SMEs: a systematic review, synthesis and research agenda," Information Technology for Development, Taylor & Francis Journals, vol. 28(1), pages 56-80, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Delera, Michele & Pietrobelli, Carlo & Calza, Elisa & Lavopa, Alejandro, 2022. "Does value chain participation facilitate the adoption of Industry 4.0 technologies in developing countries?," World Development, Elsevier, vol. 152(C).
    2. Lei Shen & Xi Zhang & Hongda Liu, 2022. "Digital technology adoption, digital dynamic capability, and digital transformation performance of textile industry: Moderating role of digital innovation orientation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2038-2054, September.
    3. Cho, Jaehan & DeStefano, Timothy & Kim, Hanhin & Kim, Inchul & Paik, Jin Hyun, 2023. "What's driving the diffusion of next-generation digital technologies?," Technovation, Elsevier, vol. 119(C).
    4. Justy, Théo & Pellegrin-Boucher, Estelle & Lescop, Denis & Granata, Julien & Gupta, Shivam, 2023. "On the edge of Big Data: Drivers and barriers to data analytics adoption in SMEs," Technovation, Elsevier, vol. 127(C).
    5. Kren, Janez & O'Toole, Conor, 2024. "What drives SME investment in digitalisation? Micro-data evidence for Ireland," Papers WP777, Economic and Social Research Institute (ESRI).
    6. Fındık, Derya & Tansel, Aysit, 2013. "Resources on the stage: a firm level analysis of the ict adoption in Turkey," MPRA Paper 65956, University Library of Munich, Germany, revised 05 Aug 2014.
    7. Luigi Benfratello & Tiziano Razzolini & Alessandro Sembenelli, 2009. "Does ICT Investment Spur or Hamper Offshoring? Empirical Evidence from Microdata," Working papers 05, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    8. Nazym Akhmetzhanova & Assel Tapalova & Zhumakyz Gabbassova & Aigul Shadiyeva & Gulistan Akhmetova & Yerlan Onlassynov & Marat Saparbaev & Zhanar Yerzhanova, 2024. "Development of a methodology for assessing the efficiency of an agribusiness enterprise in using digital technologies," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 5(13 (131)), pages 48-57, October.
    9. Uwizeyemungu, Sylvestre & Poba-Nzaou, Placide & St-Pierre, Josée, 2022. "Back-end information technology resources and manufacturing SMEs’ export commitment: An empirical investigation," International Business Review, Elsevier, vol. 31(5).
    10. Broccardo, Laura & Tenucci, Andrea & Agarwal, Reeti & Alshibani, Safiya Mukhtar, 2024. "Steering digitalization and management control maturity in small and medium enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    11. Simona Stojanova & Nina Cvar & Jurij Verhovnik & Nataša Božić & Jure Trilar & Andrej Kos & Emilija Stojmenova Duh, 2022. "Rural Digital Innovation Hubs as a Paradigm for Sustainable Business Models in Europe’s Rural Areas," Sustainability, MDPI, vol. 14(21), pages 1-20, November.
    12. Dwivedi, Abhishek & Pawsey, Nicholas, 2023. "Examining the drivers of marketing innovation in SMEs," Journal of Business Research, Elsevier, vol. 155(PB).
    13. Jiyoung Kimjeon & Per Davidsson, 2022. "External Enablers of Entrepreneurship: A Review and Agenda for Accumulation of Strategically Actionable Knowledge," Entrepreneurship Theory and Practice, , vol. 46(3), pages 643-687, May.
    14. Jiang, Kangqi & Du, Xinyi & Chen, Zhongfei, 2022. "Firms' digitalization and stock price crash risk," International Review of Financial Analysis, Elsevier, vol. 82(C).
    15. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.
    16. Fossen, Frank M. & McLemore, Trevor & Sorgner, Alina, 2024. "Artificial Intelligence and Entrepreneurship," IZA Discussion Papers 17055, Institute of Labor Economics (IZA).
    17. Abi Saad, Elie & Tremblay, Nathalie & Agogué, Marine, 2024. "A multi-level perspective on innovation intermediaries: The case of the diffusion of digital technologies in healthcare," Technovation, Elsevier, vol. 129(C).
    18. Shore, Adam & Tiwari, Manisha & Tandon, Priyanka & Foropon, Cyril, 2024. "Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs," Technovation, Elsevier, vol. 135(C).
    19. Oliviero A. Carboni, 2013. "Investment in Information and Communication Technologies (ICT): The Role of Geographic Distance and Industry Proximity," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 191-212, Winter.
    20. Choi, Hyundo, 2024. "Investing in hardware vs. software of digital systems for innovation outcomes: A contingency view," Technological Forecasting and Social Change, Elsevier, vol. 202(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01257-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.