Influential Variables and Causal Relations Impact on Innovative Performance and Sustainable Growth of SMEs in Aspect of Industry 4.0 and Digital Transformation

• Main Authors: Ha, T. (Author), Kim, S. (Author)
• Format: Article
• Language: English
• Published: MDPI 2023
• Subjects: digital transformation; innovative performance; small and medium-sized enterprises; sustainability; sustainable business; sustainable growth; sustainable innovation; technology competency
• Online Access: View Fulltext in Publisher; View in Scopus
• ISBN: 20711050 (ISSN)
• DOI: 10.3390/su15097310

Digital Transformation is essential in the global industry for survival and sustainable growth, and SMEs are mainly required to apply digital technology for sustainable growth. This study aims to verify the causal relationship between the variables significantly affecting Digital Transformation’s sustainable growth and innovative performance and suggest critical variables and strategies in which Digital Transformation’s constituent factors affect sustainable growth. Data were collected from an online survey of 303 CEOs of SMEs. Using Smart PLS, analyzed the factors affecting the sustainable growth of SMEs and verified the causal relationship. We found that applying Digital Transformation in SMEs is necessary because Digital Transformation affects innovation performance and ultimately impacts sustainable growth. By verifying the variables that affect the sustainable growth of 7 industrial sectors, we establish sustainable growth strategies suitable for each industry and provide the variables that affect sustainable growth. The findings imply that DT is essential for the sustainable growth of SMEs and that impact variables appropriate to the industry should be applied. The study results will be a new area of interest for future researchers. © 2023 by the authors.