Unveiling the dimensions of digitalization: Evidence from peruvian SMEs

Abstract

Peruvian companies have started to invest in digital transformation initiatives. However, they are not yet seeing results. This situation may be explained by the fact that these companies have low levels of digitalization, which is a step prior to digital transformation. This gap is even higher when small and medium enterprises (SMEs) are assessed, considering that their investment in technologies is low. It is thus important for SMEs to improve their digitalization levels in order to access the associated benefits of digital transformation in the future, especially if it is considered that the use of technologies has exponentially increased during the pandemic as various companies rely on them to continue their businesses. Digitalization, however, is a broad concept that is difficult to measure and, in the absence of indicators, assessing companies' progress in digitalization may be limited. On this basis, this study aims to determine the potential dimensions of digitalization at the company level through empirical evidence. This research dealt with 38 variables taken from relevant literature, with principal components analysis used as the analytical technique. Findings suggest that digitalization at a company level has seven dimensions. Finally, implications are discussed.