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Do the innovation and digital transformation strategies induce SME performances in new normal era? Structural & confirmatory analysis models

Elsaman Hosam Azat, Tamadher Aldabbagh, Said Dina Sabry, Kousihan Suriya Kumaran, Japos Genaro V.

Acta Innovations

2023

no. 47

41--55

One of major challenge in a sustainable growth, which organizations face is a slow adoption of the digital transformation. This research work presents the reasons that lead to the slow digitization process in medical device SMEs in southern Germany. In addition, by developing the conceptual model, this work highlights the effect of these improper implementations on SME's business performances and financial situation. The researchers applied correlational research design methodology, with simple random sampling techniques along with empirical and statistical study with primary data collection. The main study variables are SME’s financial situation, SMEs organizational performance, and medical digitization rules. The study demonstrated the negative impact of delayed digital mechanisms in terms of businesses and financial performances.The extra transparency restrictions that add burdens for SMEs, and the lack of training for the employees, which in overall add more difficulties for adopting innovation and digital transformation are other factors negatively affecting the studied process.