The influence of digital transformation on the growth of small and medium enterprises in KwaZulu-Natal

Abstract

Digital transformation has become the driver of the current market in the world of business. Globally, the business environment has become highly dynamic, unpredictable, and competitive due to external forces that generate change, mostly “technology”. Existing data indicate that the arrival of digital transformation is forcing businesses to change the way they operate. Therefore, a warning to any enterprise to rethink the way they operate, to maintain their competitive advantage. This study sought to investigate the effectiveness of digital transformation and assess its impact on Small and Medium Enterprises (SMEs) in KwaZulu-Natal. Furthermore, the study aimed to explore the extent to which South African SMEs implement digital transformation using the case study of KwaZulu-Natal. Moreover, the investigation determined the factors that challenge digital transformation in SMEs. A qualitative design was used to collect data through semi-structured interviews, with eight interviews conducted in Durban, in the KwaZulu-Natal province. Eight SMEs representatives were interviewed and responded to the questions. In the analysis of data, various factors were identified that link SMEs and the arrival of digital technologies. In the effectiveness of digital transformation, the study identified that themes such as “gaining exposure” and “gaining effective sales figures” result from implementing digital transformation. In reference to its impact on SMEs, the analysed data illustrate that digital transformation has a huge impact in building customer relationships and ensuring easy accessibility of the business. As to the extent of implementation, the collected and analysed data indicate mainly online selling and digital marketing as the main digital platforms successfully implemented by most SMEs. Lastly, the study reveals that factors such as digital maintenance and rapid changes in technology are the main challenging factors of digital transformation in SMEs. In the final analysis of data, the study recommends that South African SMEs must improve digital transformation implementation by extending more digital marketing to gain more exposure. Every business desire competitive advantage in the business sector, therefore, every SME must adapt to the new ways of doing business by implementing effective digital transformation.