The role of the regulatory framework in enhancing SMEs’ digital transformation

Marianna Succurro and Cristiana Donati

International Review of Law and Economics, 2025, vol. 83, issue C

Abstract: This paper aims at exploring the current process of SMEs’ digital transformation in order to contribute to effective policy development. We first provide a definition of firms’ digital transformation and then investigate its fundamental determinants, so responding to the call for further research and more comprehensive understandings of the digital transformation process. The objective is to verify the impact of the regulatory environment on digital transformation of SMEs. The empirical analysis, based on data taken from the Flash Eurobarometer Survey of the European Commission, shows that the regulatory framework is strongly significant in explaining firms’ digital transformation. Specifically, SMEs’ awareness of the regulatory context and anticipated digital standards: 1) expedites their process of digital transformation; 2) positively moderates the relationship between any strategic plan and their digital transformation; 3) generates a relatively greater impact on the digital transformation of firms mainly involved in the adoption of more advanced digital technologies. Some policy implications conclude the work.

Keywords: SMEs; Digital markets; Digital technologies; Digital transformation; Regulation; Logit; Multinomial logit (search for similar items in EconPapers)
JEL-codes: D22 K00 L5 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:83:y:2025:i:c:s0144818825000195

DOI: 10.1016/j.irle.2025.106263

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