Exploring the Impact of Digital Technology Adoption on SME Performance: A Systematic Literature Review

Abstract

Purpose: This study aims to systematically review the existing literature on the impact of digital technology adoption on small and medium-sized enterprise (SME) performance. Specifically, it identifies the dominant digital technologies, theoretical frameworks, research methodologies, and empirical evidence that explain how digital technology adoption contributes to SME performance.

Design/methodology/approach: A systematic literature review (SLR) was conducted by examining empirical studies published between 2011 and 2024. Relevant articles were identified through major academic databases, including ScienceDirect, Emerald, and Mendeley, using predefined search strategies and selection criteria. Following the screening process, ten peer-reviewed studies that directly examined the relationship between digital technology adoption and SME performance were selected for qualitative synthesis.

Findings: The review demonstrates that digital technologies, including cloud computing, e-commerce, social media, big data analytics, blockchain, digital accounting systems, and the Industrial Internet of Things (IIoT), positively influence SME financial and operational performance. The Technology–Organization–Environment (TOE) framework emerged as the most frequently adopted theoretical framework, often integrated with the Diffusion of Innovation (DOI), Technology Acceptance Model (TAM), and Resource-Based View (RBV). The findings further indicate that quantitative approaches, particularly questionnaire-based surveys analyzed using Structural Equation Modeling (SEM), dominate the existing literature, whereas qualitative and longitudinal studies remain limited.

Practical implications: The findings provide valuable insights for SME owners, policymakers, and digital transformation practitioners regarding the strategic role of digital technology adoption in enhancing business performance, improving competitiveness, and supporting digital economic development.

Originality/value: This review offers a comprehensive synthesis of the current literature by integrating technological, theoretical, methodological, and empirical perspectives on digital technology adoption and SME performance. It also identifies important research gaps and proposes directions for future research.

Paper type: Review paper