Digitalization-Based Innovation — A Case Study Framework

Abstract

Small- and medium-sized enterprises (SMEs) have been leading innovation processes, where the upsurge of digital technology has overpowering implications on competitive positioning, firm’s value chains and overall business model. Value creation facilitated by emerging digital technologies alters costs, as well as process performance. Due to field research and in-depth interviews with owners and managers of SMEs in North-East Italy area, we combine and analyze evidence of the contingent challenges companies face while trying to redesign their business model. Our results point out that being able to accumulate and put into action external ideas can be vital in supplementing internal knowledge base and therefore crucial in escaping technological lock-ins; thus, imposing efforts toward digital transformation offers favorable outcoes.

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