Role of Government to Enhance Digital Transformation in Small Service Business

By Chun-Liang Chen, Yao-Chin Lin, Wei-Hung Chen, Cheng-Fu Chao, Henry Pandia. Sustainability, 2021

323 citations recorded by the source corpus.

In the digital economy era, small service business struggle to compete in a rapidly changing and dynamic market. Therefore, through digital transformation (DT), small service business seek to increase their competitive advantage, improve business performance, and achieve business growth. Having limited resources and capabilities, small service business must deal with several barriers and challenges. This study aims to discover the barriers, and the roles of government, for digital transformation in small service business. This study applied a qualitative approach involving semi-structured in-depth interviews with top management of small service business. Then, we employed the content analysis method to examine interview data and construct a model. This research reveals four main barriers to digital transformation in small service business: lack of funding, lack of digital capability, lack of human resources, and technical barriers. We found there are four government roles for supporting digital transformation in small service business: build a digital platform for small service business, promote mobile/digital payment, provide digital training, and build a digital collaboration ecosystem. Additionally, based on this study’s findings, a model for barriers and government support of digital transformation in small service business is presented. This study contributes to the conceptual framework and management implications in the digital transformation field. The study’s findings provide insights to practitioners and suggest that the government could alter the current policies and programs to support digital transformation in small service business.

Subfields: Demography, Marketing, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/f9fbae2d5821f674f2664b02ac0844f09b4061cf

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In Demography

1. Chunguang Bai
2. Matthew Quayson
3. Joseph Sarkis

In Marketing

1. Jorge Heredia
2. Cristian Geldes
3. Walter Heredia
4. A. Flores
5. Mauricio Castillo-Vergara
6. F. M. Carbajal Gamarra
7. Joseph Sarkis
8. K. Maas

In Sociology and Political Science

1. Joseph Sarkis

Citations in the corpus

• COVID-19 pandemic digitization lessons for sustainable development of micro-and small- enterprises (2021, background): “Along this line of volatility and sustainability, it has been found that MSEs that deploy digitization resources across business processes are more likely to survive uncertainty and be more sustainable in a pandemic era ( Chen et al., 2021 ; Doyle and Cosgrove, 2019 ).”
• How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal” (2022, background): “However, Usai et al. (2021) and Chen, Lin, Chen, Chao and Pandia (2021) pro-pose that companies reshape their capabilities to meet new market demands by adopting digital transformation as their primary organizational strategy.”