Exploring the Influencing Factors of Digital Transformation: Empirical Results From SMEs in China

ABSTRACT Digital transformation has become a crucial strategic initiative to advance high‐quality development among small‐ and medium‐sized enterprises (SMEs) in developing countries. However, existing research lacks a comprehensive analysis of the complex causal mechanisms underlying successful digital transformation in SMEs. This study aims to uncover the drivers of digital transformation in SMEs and identify effective pathways for their digital adoption. Utilizing the push–pull–mooring (PPM) theory, this research applies necessary condition analysis (NCA) and fuzzy set qualitative comparative analysis (fsQCA) on a sample of SMEs to investigate the influencing factors and pathway choices for digital transformation in China. The findings indicate that digital infrastructure, technological innovation capability, digital talent, and market competitive pressure are essential conditions for advancing digital transformation in SMEs. Two primary pathways to elevate digital transformation levels in SMEs are identified: the “Fully Element‐Driven Type” and the “Push–Mooring Effects‐Oriented Type.” Comparative analysis of different pathways reveals substitution effects among certain drivers of digital transformation. This study contributes to understanding the complex causal interplay of factors influencing digital transformation in SMEs, providing actionable insights and pathway guidance for enterprises seeking to implement digital transformation.