Exploring the Digital Transformation Path of Small and Medium-sized Enterprises under the fsQCA Approach for Sustainable Competitive Advantage

Abstract

This paper combines the DEA-Malmquist index model and the fsQCA method, and applies them together in studying the exploration of digital transformation paths of small and medium-sized enterprises. First, the data of a traditional company from 2018 to 2022 is selected as the initial research sample, and the data of the sample enterprise is organized. Then, according to the data type of each condition and result, the data were converted into affiliation scores by applying the direct calibration method. The calibrated data were entered into the fsQCA 3.0 software for the necessary conditions test, and the sufficiency antecedent group state analysis was performed for high-level digital transformation. Finally, the performance of enterprises after digital transformation was analyzed in terms of 2 aspects: profitability and operational capacity. The results show that there are 4 paths of high-level digital transformation for SMEs: aspiring firm-led, aspiring government-led, aspiring firm-against-against-against-government synergistic and aspiring firm-against-efficient-market synergistic. The operating margin of transformed enterprises is significantly higher than that of non-transformed and the industry average, with a minimum value of 6.51% in 2021, which is much higher than that of non-transformed. The operating cycle of pre-transformation firms stays at 100-240 days in 2018-2022, which is significantly higher than the level of 80-100 days in the post-transformation period.

Keywords

• fsqca methodology
• dea-malmquist
• group analysis
• digital transformation
• financial data
• 00a73