DECIPHERING THE DETERMINANTS OF DIGITAL TRANSFORMATION: IMPACT OF INTERNAL AND EXTERNAL FACTORS ON TUNISIAN INDUSTRIAL SMEs

Abstract

Digital transformation has become a crucial issue for modern businesses. It plays a decisive role in improving business performance by optimizing processes, fostering innovation and increasing competitiveness in the global marketplace. The adoption of digital technologies not only streamlines internal operations, but also enables companies to respond more effectively to changing consumer demands. This research provides essential empirical data on companies' digital transformation intentions, helping to deepen our understanding of the factors driving this digital evolution. Unlike previous research, this article suggests that digital transformation is not driven by a single factor but by the interplay between a company's internal and external factors. Therefore, the purpose of this study is to explore how a combination of internal and external factors influences the digital transformation intentions of Tunisian industrial SMEs. By examining the various internal and external factors influencing this intention, we aim to offer valuable insights for decision-makers and practitioners wishing to guide their companies through the ever-changing digital landscape. An empirical analysis on a sample of 264 Tunisian industrial SMEs was conducted by applying multiple linear regression. Findings from the multiple linear regression analysis indicate that external pressures such as institutional and market pressures, as well as technological capital, play a crucial role in fostering high digital transformation intentions within companies. In contrast, the regression analysis results revealed that a company's human capital and organizational culture act as barriers to achieving digital transformation. This study's findings not only contribute to existing theories on digital transformation but also significantly enhance our understanding of the factors influencing corporate digital transformation efforts.