Digitalisation for SMEs: Doing More with Less
In an era where digital transformation is often equated with large-scale, high-budget initiatives, small and medium-sized enterprises (SMEs) find themselves navigating a different reality. For these businesses, digitalisation isn’t about adopting the latest technologies en masse but about making strategic, resource-conscious decisions that align with their unique contexts. This approach, rooted in entrepreneurial marketing (EM) logic, emphasises adaptability, creativity, and the judicious use of available resources.
Understanding Digitalisation in the SME Context
Digitalisation for SMEs involves integrating digital technologies into various aspects of business operations to enhance value creation and delivery. Unlike larger corporations with dedicated IT departments and substantial budgets, SMEs often operate with limited resources, making the path to digital transformation less straightforward. This necessitates a more nuanced understanding of digitalisation—one that considers not just the technologies themselves but also the strategic, human, and cultural factors that influence their adoption and implementation.
The Entrepreneurial Marketing Perspective
Entrepreneurial marketing offers a lens through which SMEs can approach digitalisation more effectively. Central to this perspective are concepts like effectuation and bricolage. Effectuation involves starting with available means—who you are, what you know, and whom you know—and allowing goals to emerge over time. Bricolage, on the other hand, refers to making do with what is at hand, creatively recombining resources to solve problems and seize opportunities.
Digitally, this might translate to using free or low-cost tools like Canva for design, Mailchimp for email marketing, or WhatsApp for customer communication. Rather than investing in comprehensive, and often expensive, digital solutions, SMEs can piece together a functional digital infrastructure that meets their immediate needs and can evolve over time.
Sociomateriality: The Interplay of Technology and Social Context
The concept of sociomateriality underscores the idea that technology adoption is not merely a technical decision but is deeply intertwined with the social context of the organization. For SMEs, this means that the choice and use of digital tools are influenced by factors such as the entrepreneur’s digital literacy, the existing organizational culture, and the specific needs of their customer base.
For instance, a local artisan might choose to sell products through Instagram and manage orders via direct messages, aligning with their customers’ preferences and their own comfort with the platform. This approach may not be scalable in the traditional sense, but it effectively serves the business’s current objectives and resources.
Challenges and Constraints
Despite the potential benefits, SMEs face several challenges in digitalisation. Limited financial resources can restrict access to advanced technologies. A lack of digital skills among staff can hinder the effective use of digital tools. Additionally, the time constraints inherent in running a small business can make it difficult to invest in learning and implementing new technologies.
These constraints necessitate a strategic approach to digital adoption, where decisions are guided by a clear understanding of the business’s goals, customer needs, and available resources. The focus shifts from adopting technology for its own sake to integrating tools that offer tangible benefits and align with the company’s operational realities.
Leveraging Minimum Viable Products (MVPs) and Lean Testing
The principles of lean startup methodology, particularly the use of minimum viable products (MVPs), align well with the EM approach to digitalisation. By developing simple, functional versions of digital tools or campaigns, SMEs can test ideas quickly and gather feedback without significant investment. This iterative process allows for continuous improvement and ensures that digital initiatives are grounded in actual customer needs and responses.
For example, an SME might create a basic landing page to gauge interest in a new product or use social media polls to solicit customer opinions. These low-cost experiments provide valuable insights and inform more substantial digital investments down the line.
Strategic Recommendations for SMEs
- Assess Internal Capabilities: Evaluate the digital skills within your team and identify areas where training or external support may be needed.
- Prioritize Customer-Centric Tools: Choose digital tools that enhance customer engagement and satisfaction, ensuring they align with your customers’ preferences and behaviors.
- Adopt a Phased Approach: Implement digital solutions incrementally, allowing time to assess effectiveness and make adjustments as needed.
- Foster a Culture of Experimentation: Encourage a mindset that embraces testing and learning, recognizing that not all digital initiatives will succeed, but each offers an opportunity for growth.
- Leverage Networks and Communities: Engage with other SMEs, industry groups, and online communities to share experiences, learn from peers, and discover new digital tools and strategies.
Digitalisation presents both opportunities and challenges for SMEs. By adopting an entrepreneurial marketing mindset, these businesses can embrace digital technologies with agility and resourcefulness. Through effectuation, bricolage, and a focus on sociomateriality, SMEs can craft tailored digital strategies that reflect their unique contexts and drive sustainable growth.
In embracing this approach, SMEs not only enhance their competitiveness but also contribute to a more diverse and resilient digital economy.
Note: This article is inspired by concepts discussed in “Digital Entrepreneurial Marketing Bricolage: A Sociomaterial Lens” by Alford & Jones (2025) and other related literature.
See the accompanying lecture slides and download the powerpoint here