Resilience acceleration model of small and medium enterprises through digital transformation

Abstract

This research aims to simulate SMEs' digital transformation approach to improve their commercial toughness in the aftermath of the Covid-19 outbreak. Quantitative research employing the unit analysis of 200 SME proprietors in Bandung, Indonesia, is utilized. The Structural Equation Model (SEM) analyzes data that examines the influence between variables. The outcomes show that 1) the setting for entrepreneurship and digital transformation has an impact on collaboration capabilities, 2) the environment for entrepreneurship and the digital transition has an impact on the ups and downs of digital transformation, 3) digital transformation and collaboration capability influence innovation value, and 4) digital transformation, collaboration capabilities, and innovation value influence the resilience of SMEs. This study established that digital transformation, collaboration capability, and innovation value substantially impact the resilience of SMEs.