Theoretical Explorations

Understanding the Digital Transformation of SMEs: A Systematic Review from a Dynamic Capabilities Perspective Across Business, Technology, and Societal Domains

Yang Hu
ROR Institute of Malaysia and International Studies (IKMAS), Universiti Kebangsaan Malaysia (The National University of Malaysia), Malaysia
Sufian Jusoh (Corresponding Author)
ROR Institute of Malaysia and International Studies (IKMAS), Universiti Kebangsaan Malaysia (The National University of Malaysia), Malaysia
Muhammad Faliq Abd Razak
ROR Institute of Malaysia and International Studies (IKMAS), Universiti Kebangsaan Malaysia (The National University of Malaysia), Malaysia
Ahmad Rizal Bin Mohd Yusof
ROR Institute of Ethnic Studies (KITA) , Universiti Kebangsaan Malaysia (The National University of Malaysia), Malaysia
Qiong Xie
ROR School of business and management, Gannan Normal University, Ganzhou, China
Chengwen Song
ROR Kookmin University, South Korea
XUEYAN ZONG
ROR Institute of Malaysia and International Studies (IKMAS), Universiti Kebangsaan Malaysia (The National University of Malaysia), Malaysia
Global Review of Humanities, Arts, and Society
Published:2026-01-16

Abstract

The impact of digital technologies on various industries has been transformative, restructuring and disrupting existing business and operational models. Small and medium-sized enterprises (SMEs) are vital to the economies of countries worldwide, leading to increased interest in their Digital Transformation (DT) from both industry and academia. However, these disruptive changes extend beyond individual companies; they also have environmental and societal implications. Over the past two decades, research on the Digital Transformation of SMEs (SMEs' DT) has garnered significant attention, covering a wide range of topics in the literature. This paper aims to provide insights into the current state of research on SMEs' DT through a systematic literature review. An analysis of co-occurrence using VOSviewer software was conducted to visually represent the literature’s node network. This approach emphasizes key research avenues in Digital Transformation (DT), highlighting technology as the main catalyst for these changes. The literature on SMEs' DT is qualitatively classified into five different clusters, focusing on business (readiness, process, and value chain), technological (AI, big data, cloud computing, blockchain), and societal impacts (Social Responsibility & Sustainability, Politics, Philosophy, Religion & Culture). Several research gaps have been identified in the literature, and they are proposed as future lines of inquiry. By addressing these gaps, valuable insights can be provided to both government and private sectors. These insights can help them adapt to disruptive changes in business and reduce negative impacts on society and the environment. 

Keywords:

Digital Transformation (DT); Small and Medium-sized Enterprises (SMEs); Technological Innovation; Business Process & Value Chain; Sustainability & Social Responsibility

Data Availability Statement

The original contributions presented in the study are included in the article, further inquiries can be directed to the corresponding author.

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Journal Info

ISSN3052-539X
PublisherPanorama Scholarly Group

How to Cite

Hu, Y., Jusoh , S. . ., Faliq Abd Razak, M. ., Bin Mohd Yusof, A. R., Xie , . Q. ., Song, C., & ZONG, X. (2026). Understanding the Digital Transformation of SMEs: A Systematic Review from a Dynamic Capabilities Perspective Across Business, Technology, and Societal Domains. Global Review of Humanities, Arts, and Society, 2(1), 1-17. https://doi.org/10.63802/grhas.V2.I1.186

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