Micro, Small and Medium-sized Enterprises in the Digital Economy: Barriers to Digitalisation

Authors

DOI:

https://doi.org/10.15678/krem.18120

Keywords:

digital economy, micro, small and medium-sized enterprises (SMEs), digitalisation barriers, digital competencies

Abstract

Objective: To identify the barriers to digitalisation micro, small and medium-sized enterprises (SME) in Poland face, using enterprises in Dolnośląskie voivodeship as an example.

Research Design & Methods: A review of the subject literature on the essence, level and importance of the digitalisation of enterprises, as well as on the limitations in the use of digital technologies by SMEs. The review is complemented by empirical research conducted in June and July 2023 on a sample of 50 enterprises. The research was preceded by field observation. A questionnaire was administered in electronic (Microsoft Forms) and paper form among clients of an accounting office in the Dolnośląskie voivodeship.

Findings: The results confirm that the level of digitalisation among micro, small and medium-sized enterprises in Poland is low. The owners of enterprises point to a range of barriers that discourage them from implementing digital solutions. The research showed that, among the micro, small, and medium-sized enterprises surveyed, the most frequent barriers to implementing digital solutions were a successfully functioning business, a lack of knowledge on available digital solutions, and a lack of clarity regarding the benefits that such solutions may bring. Meanwhile, firms that have already begun digital transformation indicated a range of barriers to further implementation of digital solutions, including a lack of suitable competences, high investment costs, and concerns about leaving traces in the digital world and being exposed to various types of inspections.

Implications / Recommendations: There is a need for education and support of digital competences, as well as to increase awareness among the owners of small firms as to the benefits digitalisation promises. At the same time, data and privacy must be protected in order to encourage entrepreneurs to safely implement digital solutions.

Contribution: The research conclusions fill a research gap and can be used by both practitioners and theoreticians. Understanding both the level of digitalisation in SMEs and the barriers hindering the use of digital technologies should help the field develop.

Downloads

Download data is not yet available.

References

Adamczewski, P. (2018). Ku dojrzałości cyfrowej organizacji inteligentnych. Studia i Prace Kolegium Zarządzania i Finansów, 161, 67–79. https://doi.org/10.33119/SIP.2018.161.5 DOI: https://doi.org/10.33119/SIP.2018.161.5

Brink, H., & Packmohr, S. (2023). Barriers to Digital Transformation in SMEs: A Quantitative Study. In: R. Jallouli, M. A. Bach Tobji, M. Belkhir, A. M. Soares, B. Casais (Eds), Digital Economy. Emerging Technologies and Business Innovation. ICDEc 2023. Lecture Notes in Business Information Processing, Vol. 485 (pp. 3–17). Springer. https://doi.org/10.1007/978-3-031-42788-6_1 DOI: https://doi.org/10.1007/978-3-031-42788-6_1

Chaber, P. (2017). ICT w przedsiębiorstwach – Polska na tle innych krajów. In: A. Tarnawa, A. Skowrońska (Eds), Sektor MSP w Polsce i UE (pp. 54–67). PARP.

Chądrzyński, M., Gruziel, K., Kacperska, E., Klusek, T., & Utzig, M. (2021). Polska w dobie cyfryzacji. Wydawnictwo SGGW.

European Commission. (2020). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. SME Strategy for a Sustainable and Digital Europe. Brussels, 10.03.2020. COM(2020) 103 final. Retrieved from: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2020%3A103%3AFIN (accessed: 20.09.2023).

European Commission. (2021). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Digital Compass 2030: The European Path in the Digital Decade. Brussels, 9.30.2021. COM/2021/118 final. Retrieved from: https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A52021DC0118 (accessed: 20.09.2023).

European Commission. (2023). Digital Economy and Society Index (DESI) 2022. Integration of Digital Technology. Retrieved from: https://digital-strategy.ec.europa.eu/pl/policies/desi-integration-technology-enterprises (accessed: 26.08.2023).

European Investment Bank. (2023). Digitalisation in Europe 2022–2023. Evidence from the EIB Investment Survey. Retrieved from: https://www.eib.org/en/publications/20230112-digitalisation-in-europe-2022-2023 (accessed: 20.09.2023).

European Union. (n.d.). Priorytety Unii Europejskiej na lata 2019–2024. Retrieved from: https://european-union.europa.eu/priorities-and-actions/eu-priorities/european-union-priorities-2019-2024_pl (accessed: 26.08.2023).

Gajewski, J., Paprocki, W., & Pieriegud, J. (Eds). (2016). Cyfryzacja gospodarki i społeczeństwa – szanse i wyzwania dla sektorów infrastrukturalnych. Instytut Badań nad Gospodarką Rynkową – Gdańska Akademia Bankowa.

GUS. (2022a). Activity of Enterprises with up to 9 Persons Employed in 2021. Statistical Analyses. Statistics Poland.

GUS. (2022b). Działalność innowacyjna przedsiębiorstw w Polsce w latach 2019–2021.

Klimek, J. (2017). Strategia MSP. Przedsiębiorczość – konkurencyjność – rozwój. Wydawnictwo Ementon.

Kocsis, A. (2012). A multinacionális vállalatok szerepe a hazai klaszterekben. Vezetéstudomány, 43, 24–35. DOI: https://doi.org/10.14267/VEZTUD.2012.ksz2.03

Kowalczyk, L. (2017). Cyfryzacja w procesie postępu cywilizacyjnego i jej współczesna rola w innowacyjności. In: L. Kowalczyk, F. Mroczko (Eds), Innowacyjność to cyfryzacja i rozwój: zarządzanie operacyjne w teorii i praktyce organizacji biznesowych, publicznych i pozarządowych (pp. 9–46). Wyższa Szkoła Zarządzania i Przedsiębiorczości w Wałbrzychu.

Kurniawan, M. A., Logaiswari, I., & Umar, H. A. K. (2023). Utilization of Digital Marketing Channels to Optimize Business Performance among SMEs in Jakarta, Indonesia. International Journal of Innovation and Business Strategy (IJIBS), 18(1), 16–25. https://doi.org/10.11113/ijibs.v18.131 DOI: https://doi.org/10.11113/ijibs.v18.131

Lasocki, T. (2021). Pozorne samozatrudnienie – przyczyny fiskalne, skutki, środki zaradcze. Ubezpieczenia Społeczne. Teoria i praktyka, 3, 23–48. DOI: https://doi.org/10.5604/01.3001.0015.4336

Le-Dain, M. A., Benhayoun, L., Matthews, J., & Liard, M. (2023). Barriers and Opportunities of Digital Servitization for SMEs: The Effect of Smart Product-service System Business Models. Service Business, 17(1), 359–393. https://doi.org/10.1007/s11628-023-00520-4 DOI: https://doi.org/10.1007/s11628-023-00520-4

Lerch, C., & Gotsch, M. (2015). Digitalized Product-service Systems in Manufacturing Firms: A Case Study Analysis. Research-Technology Management, 58(5), 45–52. https://doi.org/10.5437/08956308X5805357 DOI: https://doi.org/10.5437/08956308X5805357

Marcysiak, A., & Pleskacz, Ż. (2021). Determinants of Digitization in SMEs. Entrepreneurship and Sustainability Issues, 9(1), 300–318. http://doi.org/10.9770/jesi.2021.9.1(18) DOI: https://doi.org/10.9770/jesi.2021.9.1(18)

Marr, B., & Ward, M. (2019). Artificial Intelligence in Practice: How 50 Successful Companies Used AI and Machine Learning to Solve Problems. Wiley.

Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital Transformation and Customer Value Creation in Made in Italy SMEs: A Dynamic Capabilities Perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033 DOI: https://doi.org/10.1016/j.jbusres.2020.10.033

Matt, C., Hess, T., & Benlian, A. (2015). Digital Transformation Strategies. Business & Information Systems Engineering, 57(5), 339–343. https://doi.org/10.1007/s12599-015-0401-5 DOI: https://doi.org/10.1007/s12599-015-0401-5

Mittal, S., Khan, M. A., Romero, D., & Wuest, T. (2018). A Critical Review of Smart Manufacturing & Industry 4.0 Maturity Models: Implications for Small and Medium-sized Enterprises (SMEs). Journal of Manufacturing Systems, 49, 194–214. https://doi.org/10.1016/j.jmsy.2018.10.005 DOI: https://doi.org/10.1016/j.jmsy.2018.10.005

Moeuf, A., Lamouri, S., Pellerin, R., Tamayo-Giraldo, S., Tobon-Valencia, E., & Eburdy, R. (2020). Identification of Critical Success Factors, Risks and Opportunities of Industry 4.0 in SMEs. International Journal of Production Research, 58(5), 1384–1400. https://doi.org/10.1080/00207543.2019.1636323 DOI: https://doi.org/10.1080/00207543.2019.1636323

Mohamad, A., Rizal, A. M., Kamarudin, S., & Sahimi, M. (2022). Exploring the Co-creation of Small and Medium Enterprises, and Service Providers Enabled by Digital Interactive Platforms for Internationalization: A Case Study in Malaysia. Sustainability, 14(23), 16119. https://doi.org/10.3390/su142316119 DOI: https://doi.org/10.3390/su142316119

Nazaruddin, I., Utami, E. R., & Rahmawati, E. (2024). Digitalization Challenges for SMEs: A Systematic Literature Review Perspective and Future Research. JBTI: Journal Bisnis: Teori Dan Implementasi, 15(1), 15–43. https://doi.org/10.18196/jbti.v15i1.20410 DOI: https://doi.org/10.18196/jbti.v15i1.20410

Orłowska, R., & Żołądkiewicz, K. (2018). Ograniczenia digitalizacji mikro-, małych i średnich przedsiębiorstw (MMŚP) w Polsce na podstawie badań w województwie pomorskim. Studia Ekonomiczne. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach, 372, 94–109.

Papadopoulos, T., Baltas, K. N., & Balta, M. E. (2020). The Use of Digital Technologies by Small and Medium Enterprises during COVID-19: Implications for Theory and Practice. International Journal of Information Management, 55, 102192. https://doi.org/10.1016/j.ijinfomgt.2020.102192 DOI: https://doi.org/10.1016/j.ijinfomgt.2020.102192

PARP. (2023). Raport o stanie sektora małych i średnich przedsiębiorstw w Polsce.

Peillon, S., & Dubruc, N. (2019). Barriers to Digital Servitization in French Manufacturing SMEs. Procedia CIRP, 83, 146–150. https://doi.org/10.1016/j.procir.2019.04.008 DOI: https://doi.org/10.1016/j.procir.2019.04.008

Pergelova, A., Manolova, T. S., Simeonova-Ganeva, R., & Yordanova, D. (2018). Democratizing Entrepreneurship? Digital Technologies and the Internationalization of Female-led SMEs. Journal of Small Business Management, 57(1), 14–39. https://doi.org/10.1111/jsbm.12494 DOI: https://doi.org/10.1111/jsbm.12494

Reddy, S., & Reinartz, W. (2017). Digital Transformation and Value Creation: Sea Change Ahead, Value Digit. Value in the Digital Era, 9(1), 11–17. https://doi.org/10.1515/gfkmir-2017-0002 DOI: https://doi.org/10.1515/gfkmir-2017-0002

Rückert, D., & Weiss, C., & Revoltella, D. (2020). Adoption of Digital Technologies by Firms in Europe and the US: Evidence from the EIB Investment Survey. Retrieved from: https://cepr.org/voxeu/columns/adoption-digital-technologies-firms-europe-and-us-evidence-eib-investment-survey (accessed: 20.09.2023).

Shofawati, A. (2019). The Role of Digital Finance to Strengthen Financial Inclusion and the Growth of SME in Indonesia. KnE Social Sciences, 3(13), 389–407. https://doi.org/10.18502/kss.v3i13.4218 DOI: https://doi.org/10.18502/kss.v3i13.4218

Skare, M., de las Mercedes de Obesso, M., & Ribeiro-Navarrete, S. (2023). Digital Transformation and European Small and Medium Enterprises (SMEs): A Comparative Study Using Digital Economy and Society Index Data. International Journal of Information Management, 68, 102594. https://doi.org/10.1016/j.ijinfomgt.2022.102594 DOI: https://doi.org/10.1016/j.ijinfomgt.2022.102594

Su, C.-W., Yuan, X., Umar, M., & Lobonţ, O.-R. (2022). Does Technological Innovation Bring Destruction or Creation to the Labor Market? Technology in Society, 68, 101905. https://doi.org/10.1016/j.techsoc.2022.101905 DOI: https://doi.org/10.1016/j.techsoc.2022.101905

Szwajca, D., & Rydzewska, A. (2022). Digital Transformation as a Challenge for SMEs in Poland in the Context of Crisis Relating to COVID-19 Pandemic. Scientific Papers of Silesian University of Technology. Organization and Management Series, 161, 289–305. https://doi.org/10.29119/1641-3466.2022.161.20 DOI: https://doi.org/10.29119/1641-3466.2022.161.20

Święcicki, I. (2022). How to Measure the Digital Decade – Recommendations for an Evolution of the DESI Index (Policy Paper No. 5). Polish Economic Institute.

Ustawa z dnia 6 marca 2018 r. Prawo przedsiębiorców. Dz.U. 2023, poz. 221.

Uzule, K., & Verina, N. (2023). Digital Barriers in Digital Transition and Digital Transformation: Literature Review. Economics and Culture, 20(1), 125–143. https://doi.org/10.2478/jec-2023-0011 DOI: https://doi.org/10.2478/jec-2023-0011

von Leipzig, T., Gamp, M., Manz, D., Schöttle, K., Ohlhausen, P., Oosthuizen, G., Palm, D., & von Leipzig, K. (2017). Initialising Customer-orientated Digital Transformation in Enterprises. Procedia Manufacturing, 8, 517–524. DOI: https://doi.org/10.1016/j.promfg.2017.02.066

Węgrzyn, G. (2023). Gospodarka cyfrowa a zmiany w popycie na pracę w Polsce. Rynek Pracy, 186(3), 4–21.

Yoo, Y., Henfridsson, O., & Lyvtinen, K. (2010). Research Commentary – the New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research. Information Systems Research, 21(4), 661–1010. https://doi.org/10.1287/isre.1100.0322 DOI: https://doi.org/10.1287/isre.1100.0322

Downloads

Published

24-06-2025

Issue

Section

Articles

How to Cite

Węgrzyn, G. (2025). Micro, Small and Medium-sized Enterprises in the Digital Economy: Barriers to Digitalisation. Krakow Review of Economics and Management Zeszyty Naukowe Uniwersytetu Ekonomicznego W Krakowie, 2(1008), 91–109. https://doi.org/10.15678/krem.18120