The performance effects of digitalization processes and digital competencies among SMEs

Digitalization is reshaping SMEs’ competitiveness; however, research shows that the performance effects of digitalization processes are far from clear. Digital technologies create value through capability-building and strategic orchestration processes, and this editorial introduces the eight papers included in the special issue which adopt a mechanism-oriented view of the digitalization-performance connection. The contributions included in this special issue integrate different theoretical lenses and methodological approaches to explain heterogeneous outcomes resulting from digitalization processes. The papers highlight operational mechanisms (e.g., digital technology integration and innovation routines) and strategic mechanisms (e.g., digital strategy development, managerial and contextual factors) that shape financial, innovation, sustainability-oriented, and strategic-related performance dimensions. The special issue reinforces the view that digitalization is a complex organizational process. The editorial concludes by identifying promising directions for future research on digital capability complementarities, and digital transformation risks.