Understanding The Digital Transformation in Smes During The Covid-19 Pandemic and The Effect on Their Business Model

The objective of this study is to understand digital transformation in the SME business during the COVID-19 pandemic and how digital transformation affects the SMEs’ business model. The COVID-19 pandemic has encouraged SMEs to have digital usage in the business which requires them to update their business model. A case study approach was adopted, and data collection involved a variety of approaches including semi-structured interviews with five SMEs. The business model of all firms should be modified to reflect digital transformation by including the way firms have done their business after the COVID-19 pandemic. This study showed that the business model for all firms should be included the evolution from their traditional business model. This paper provides a practical contribution to businesses to include the improvement of the business model to ensure that it is updated according to the digital transformation done in their business. Future studies should encourage the study of factors that encourage businesses to consider digital transformation soon where COVID-19 is not the main reason. Due to the increase in competition and the increased usage of technologies, more companies are looking forward to including digitalization and innovation in their business. So, it is important to look at the factors that would affect the increased volume of companies in digital transformation.