Drivers of digitalization in SMEs and its relation to financial performance

Small and medium-size enterprises (SME) are faced with a new phenomenon called digitalization. This current wave of innovation is continuing to transform different industries and is a hot topic for business managers and academics. Building on the resource-based-view, this study aims to investigate the driving resources for digitalization. Additionally, how can SMEs capitalize on digitalization. The framework is empirically tested using online survey data from 193 tourism accommodation SMEs in tourism intensive regions in the western part of Tyrol, Austria. The results show that: 1) SMEs that display high levels of information technology, employee skills, and digital strategy report a higher level of digitalization, and 2) the relationship between information technology and financial performance, and between employee skills and financial performance is moderated by digitalization. Based on the results, SMEs should integrate different information technologies, provide continuous learning regarding digital technologies and compile teams with balanced digital skills.submitted by Fabian Burger, BSc BScUniversität Innsbruck, Masterarbeit, 2018(VLID)256651