Digital Adoption as a Survival Strategy: A Case Study of Small and Medium Enterprises in Post-Pandemic Emerging Markets

A key structural weakness of small and medium enterprises (SMEs) in emerging markets revealed during the COVID-19 pandemic was the need for unprecedented acceleration of digital adoption as a basic survival tactic. The present paper presents a qualitative case study analysis that focuses on the use of digital tools and platforms by SMEs in emerging market economies to keep running, maintain their market positions, and regain organizational resilience during the post-pandemic era, especially in South and Southeast Asian countries. Inspired by the two theories of Dynamic Capabilities (DC) Theory (Teece, 2007) and Resource Based View (RBV) (Barney, 1991) are the theoretical underpinnings of this study. The study reveals four main themes: (1) the shift from reactive to proactive digital adoption; (2) the enabling effect of a government and institutional ecosystem; (3) human capital and digital literacy as key for the success of digitalization; and (4) financial accessibility of digital strategies as a mediating factor for their sustainability. The findings add to the existing research literature, building on SME resilience as they provide empirical evidence with useful granularity and apply to a largely non-English-speaking context – emerging economies – thereby complementing theoretical work mainly developed in terms of the advanced economies context. The practical implications are discussed for SME managers, decision makers in the government, and the financial sector.

Digital Transformation, SME Resilience, Emerging Markets, Post-Pandemic Recovery, Dynamic Capabilities, Digital Adoption, COVID-19

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