Business Models and Organizational Choices for SMEs in the Digital Single Market

Digital technologies have been offering small and medium-sized enterprises (SMEs) unparalleled opportunities for change and growth through the defini- tion and implementation of a digital strategy. Digital technologies comprise a constantly expanding set of interconnected tools such as 3D printers, the Internet of Things, blockchain technology, augmented and virtual reality (Garzoni et al., 2020; Hervé et al., 2020). While the possibility of resorting to new technologies paves the way for new markets, products, and services, the digital journey has not been devoid of difficulties for SMEs. A study by Becker and Schmidt (2020) showed, in fact, that most SMEs (63%) had no digital strategy and that they were focused mainly on the use of basic software solutions (47%) rather than on the exploration of cutting-edge possibilities. This chapter parses out digitalization pathways for SMEs and highlights their implications for internationalization and relationships along the value chain. It then delves into business model innovation to sustain digital strat- egies and analyze the organizational factors that may enable or hamper such processes.