Insights from the Stuttgart economic region
The rapid pace of digital transformation poses significant challenges for small and medium-sized enterprises (SMEs). Hence, in the context of a commissioned master’s thesis, specific hurdles faced by SMEs in the Stuttgart economic region regarding digital transformation were identified, along with the necessary competencies. In addition, this study examined how these competencies contribute to the resilience and competitiveness of SMEs, drawing valuable lessons from this case.
This study is based on empirical research findings obtained using established frameworks and a qualitative methodology. This methodology included semi-structured qualitative interviews with 20 SME managers in the Stuttgart economic region, covering different sectors and sizes within the SME segment. Key hurdles were identified at macro, meso, and micro levels, including the overwhelming pace of technological change, strategic and cultural barriers, and resistance to change, especially in traditional sectors. Six key competence areas were identified: (1) problem solving; (2) communication and collaboration; (3) safety; (4) leadership; (5) self-management; and (6) technological competencies. Leadership and self-management were highlighted as particularly important.
This research shows that the mere adoption of digital technologies does not guarantee a competitive advantage for SMEs; instead, digital transformation competencies are required. These competencies enhance the competitiveness and resilience of SMEs by helping them overcome challenges, ensure adaptability and agility, and maintain stability. In addition, they contribute to efficiency gains and support effective stakeholder relationship management. Lessons from this case highlight the importance of contextual factors such as industry dynamics, cross-organizational relationships, regional support systems, geographic differences, and cultural attitudes toward innovation. The derived recommendations suggest that SMEs should align their digital strategies with corporate culture and industry dynamics and use the identified competence portfolio to identify and close competence gaps. It is advisable to utilize regional support systems and collaborative networks with innovative niches to influence higher levels and encourage policymakers to promote digitalization initiatives in SMEs.
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