Do the innovation and digital transformation strategies induce SME performances in new normal era? Structrual & confirmatory analysis models

Abstract

One  of  major  challenge  in  a  sustainable  growth,  which  organizations  face  is  a  slow  adoption  of  the  digital transformation. This research work presents the reasons that lead to the slow digitization process in medical device  SMEs  in  southern  Germany.  In  addition,  by  developing  the  conceptual  model,  this  work  highlights the effect  of  these  improper  implementations  on  SME's  business  performances  and  financial  situation. The researchers applied correlational research design methodology, with simple random sampling techniques along  with  empirical  and  statistical  study  with  primary  data  collection.  The  main  study  variables  are  SME’s financial situation, SMEs organizational performance, and medical digitization rules. The study demonstrated the negative impact of delayed digital mechanisms in terms of businesses and financial performances. The extra transparency restrictions that add burdens for SMEs, and the lack of training for the employees, which in overall add more difficulties for adopting innovation and digital transformation are other factors negatively affecting the studied process.