Toward an Innovative Production Model: Digital Transformation in Small and Medium Enterprises

Abstract

The transformational transition toward Industry 4.0 poses a particularly challenging task for companies of all sizes, especially if their level of digital maturity is low. This is especially true for small and medium-sized businesses facing resource constraints. Even with the availability of advanced technologies such as the Internet of Things, artificial intelligence, and big data analytics, digital transformation may not happen if the company’s management models, strategy, and culture are not adapted to the increasingly complex context. This article presents a unique and rare transformation pathway in extremely unfavorable conditions. The case of Tecnomulipast (Italy) challenges established ideas about how to overcome structural constraints, demonstrates the possibility of breaking the old paradigm and escaping “path dependency,” and reveals the changing nature of potential for sustainable development. This study fills managerial, technological, and contextual gaps in research on the digitalization of SMEs and offers conclusions that are of practical use in shaping regional innovation policy.