Building Digital Capabilities in Manufacturing SMEs

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The Resource-Based View (RBV) posits that firms controlling and managing identical resources may exhibit divergent performance due to the development of distinct capabilities. These organisational capabilities, defined as an organisation’s ability to utilise its tangible or intangible assets to perform tasks or activities that enhance performance, are pivotal in securing competitive advantages. Capabilities are bifurcated into two dimensions: capacity and maturity. Capacity pertains to the resources that an organisation manages and controls, while maturity denotes proficiency in utilising the capacity for value creation that aligns with strategic objectives. In the contemporary business landscape, digitalisation has emerged as a significant avenue for Small and Medium Enterprises (SMEs) to carve out competitive advantages. However, it is noteworthy that 70% of digital transformation initiatives fail to contribute to business performance [5], underscoring the importance of successful digitalisation applications in streamlining business processes. Digitalisation capabilities, which refer to the ability to generate value from data produced, gathered, and stored by digital technologies in alignment with business strategy, can be cultivated through digital capacity and digital maturity. This research employs a theoretical framework to foster digital capabilities within organisations, the applicability of which was demonstrated via a longitudinal case study in a Turkish manufacturing SME. The findings reveal various strategies to adapt different digital technologies for value creation and business promotion within its industry. The journey of digitalisation in manufacturing SMEs presents several gaps that require attention, and it is crucial to align digital capabilities with the company’s strategic objectives.
Original languageEnglish
Title of host publicationAdvances in Production Management Systems. Production Management Systems for Volatile, Uncertain, Complex, and Ambiguous Environments. APMS 2024
PublisherSpringer
Pages135-147
Number of pages13
ISBN (Electronic)9783031716331
ISBN (Print)9783031716324
DOIs
Publication statusPublished - 7 Sept 2024

Publication series

NameIFIP Advances in Information and Communication Technology
Volume731
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X

Keywords

  • Digitalisation
  • Organisational Capabilities
  • SMEs

ASJC Scopus subject areas

  • Information Systems and Management

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