Strategic appraisal of the interdependence of digital technologies in emerging entrepreneurial models

Abstract

The purpose of this paper is to investigate some consequences of the assumption that digitalization can benefit small and medium-sized enterprises (SMEs). In the digital economy, SMEs are key players. For example, there are 33 million small businesses in the U.S. and 31 million SMEs in the EU. SMEs are important as the primary source of new job creation and the dissemination of new business practices, and they make a substantial contribution to GDP. If the e-economy is to make real progress, there must be active and substantial SME participation. This basic reality applies to SMEs worldwide. The potential offered by e-business to SMEs is considerable through enhanced productivity, reduced transaction costs, increased management efficiency, access to potential new markets, and better penetration of the existing customer base. The majority of these entrepreneurial firms base their sustainable competitive advantage on optimizing core competencies through the introduction and wider application of digital technologies. From an entrepreneurial perspective, and especially from a strategic point of view, the processes of creating new entrepreneurial firm models and reengineering existing ones should involve digitalization. In this paper, the authors examine and discuss three major competitive entrepreneurial models focused primarily on achieving strategic goals and reengineering the current "classical entrepreneurial firm structure" into a "virtual entrepreneurial firm structure". The authors consider improving sustainable competitive advantage by enhancing overall entrepreneurial firm performance through the design and implementation of different complementary and profitable digital technologies. Finally, conclusions are drawn, and recommendations are made based on the researched digitalization models and findings.