The Impact of Digital Transformation on SME Competitiveness: A Multinational Empirical Study and Strategic Optimization

Abstract

This study establishes a dynamic capability architecture through the Pentagonal Transformation Framework (PTF) grounded in resource-based view theory [1], integrating five dimensions: algorithmic adaptability (real-time learning system reconfiguration) [2], governance plasticity(dynamic compliance mechanisms)[3], institutional porosity (regulatory-innovation alignment)[4], ecosystem symbiosis (multi-stakeholder value co-creation)[5], and cognitive resilience (human-AI collaborative intelligence)[6]. Analyzing triangulated data streams (including 12,300 operational datapoints, 540 executive journal entries, and 76 policy white papers) from 18 SMEs representing discrete manufacturing, retail commerce, and agri-value chains across Germany (Bavaria & Baden-Württemberg regions), Vietnam (Mekong Delta & Red River Delta economic zones), and Kenya (Nairobi and Rift Valley hubs) (2019-2023) across 54 implementation cycles, we identify three transformation archetypes.