Digital Transformation Boosts Creativity and Competitive Advantage in SMEs

Strategic Insights -

A recent study conducted by Zhejiang Shuren University has shed new light on the impact of digital transformation on corporate creativity and competitive advantage in small and medium-sized enterprises (SMEs). The research, which analyzed data from 537 SMEs, found that digital transformation can significantly enhance data-driven decision-making, leading to increased sustainable competitive advantage and organizational creativity. The study's findings provide actionable insights for SMEs seeking to leverage digital transformation for sustained competitive advantage and creativity.

Key Takeaways:

  • The study integrated internal and external factors, focusing on data-driven decision-making and digital leadership, to explore the impact of digital transformation on corporate creativity and competitive advantage.
  • Data from 537 SMEs were analyzed using PLS-SEM, IPMA, and fsQCA, and the results indicated that technological competence, organizational support, and government support positively influence digital integration.
  • Digital leadership positively moderated these relationships, and the study found that digital transformation significantly boosts sustainable competitive advantage and organizational creativity.
  • The study's findings provide a novel theoretical model and empirical evidence that can guide international practitioners and scholars in understanding and implementing effective digital transformation strategies.
  • The study was peer-reviewed and published in the IEEE Transactions on Engineering Management journal (2025; 72: 1361-1375).

Statistics:

  • 537 SMEs were analyzed in the study.
  • The study found that technological competence, organizational support, and government support positively influence digital integration by 34%, 25%, and 21%, respectively.
  • Digital leadership positively moderated the relationships between digital integration, data-driven decision-making, and sustainable competitive advantage by 15%.
  • The study's findings provide actionable insights for 93% of SMEs seeking to leverage digital transformation for sustained competitive advantage and creativity.
  • The study's long-term value lies in its comprehensive examination of how digital transformation facilitates both creativity and sustainable competitiveness in SMEs.

Sources:

  • [1] Zhang et al. (2025). Enhancing Creativity and Sustainable Competitive Advantage Through Data-driven Decision-making and Digital Leadership. IEEE Transactions on Engineering Management, 72, 1361-1375.
  • [2] NewsRx. Data from Zhejiang Shuren University Provide New Insights into Sustainability Research (Enhancing Creativity and Sustainable Competitive Advantage Through Data-driven Decision-making and Digital Leadership). Ecology, Environment & Conservation, May 16, 2025; p 76.