DIGITALISATION AND INNOVATION IN SMES: INFLUENCES ON THE ADVANTAGES OF DIGITAL ENTREPRENEURSHIP

Abstract

Firms focus on digital entrepreneurship to face the challenge of survival in turbulent times, a continuing challenge for their leaders, specifically those in charge of small and medium-sized enterprises (SMEs). This means these leaders have to be manufacturers and digital at the same time, to avoid digital, technological and innovative illiteracy. This study aims to determine how digitalisation and innovation have a positive influence on the advantages of digital entrepreneurship in SMEs. To achieve this objective, the quantitative method of structural equation modelling (SEM) was used, with data-collection being based on a questionnaire. The results obtained show that digitalisation and innovation greatly increase the advantages of digital entrepreneurship when the intention is to maximise efficiency, customer relations and stimulate better behaviour among collaborators. Specifically, this study shows how SME managers can embrace new business opportunities supported by the use of information technology and by adopting an organisational culture of innovation. In this way, these small firms can raise their competitiveness in relation to their rivals. Conclusions, contributions, limitations and indications for future research are also presented.