Influential Variables and Causal Relations Impact on Innovative Performance and Sustainable Growth of SMEs in Aspect of Industry 4.0 and Digital Transformation

Seoksoo Kim and Taekwan Ha ()
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Seoksoo Kim: Division of Management of Venture, Graduate School of Venture, Hoseo University, 2497 Nambusunwhan-Ro, Seocho-gu, Seoul 336-795, Republic of Korea
Taekwan Ha: Division of Management of Venture, Graduate School of Venture, Hoseo University, 2497 Nambusunwhan-Ro, Seocho-gu, Seoul 336-795, Republic of Korea

Sustainability, 2023, vol. 15, issue 9, 1-27

Abstract: Digital Transformation is essential in the global industry for survival and sustainable growth, and SMEs are mainly required to apply digital technology for sustainable growth. This study aims to verify the causal relationship between the variables significantly affecting Digital Transformation’s sustainable growth and innovative performance and suggest critical variables and strategies in which Digital Transformation’s constituent factors affect sustainable growth. Data were collected from an online survey of 303 CEOs of SMEs. Using Smart PLS, analyzed the factors affecting the sustainable growth of SMEs and verified the causal relationship. We found that applying Digital Transformation in SMEs is necessary because Digital Transformation affects innovation performance and ultimately impacts sustainable growth. By verifying the variables that affect the sustainable growth of 7 industrial sectors, we establish sustainable growth strategies suitable for each industry and provide the variables that affect sustainable growth. The findings imply that DT is essential for the sustainable growth of SMEs and that impact variables appropriate to the industry should be applied. The study results will be a new area of interest for future researchers.

Keywords: sustainable growth; sustainability; small and medium-sized enterprises; digital transformation; sustainable innovation; sustainable business; innovative performance; technology competency (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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