Research on Digital Transformation and the Innovation Model of SMMEs: The Case Study of PAYA

The rapid development of digital technology has prompted many enterprises to carry out digital transformation. For SMMEs (small- and medium-sized equipment manufacturing enterprises), digital transformation is not only a necessary measure to deal with changes in the external environment but also a key opportunity to stimulate the vitality of internal innovation. At the same time, the digital transformation of SMMEs and a series of innovation activities caused by it, as well as the various innovation models that have evolved from it, are closely related to managerial cognition. On the premise that digital transformation is regarded as an enterprise innovation activity, this study discusses the ways in which digital transformation drives the innovation model of SMMEs. Taking PAYA as the research object, combined with the theory of resource orchestration, this study adopts the longitudinal single-case study method to explore the connotation and operation logic of the SMME innovation model and constructs a theoretical “digital transformation-innovation-innovation” model. The key findings of the research are as follows: Firstly, innovation models experience a phased evolution. Digital transformation promotes the innovation of SMMEs through three stages: digital technology structuring single-agent innovation, digital technology bundling dual-agent innovation, and digital technology leveraging multi-agent innovation. Secondly, the role of managerial cognition is pivotal. Managerial cognition is the core driving force promoting the digital transformation and innovation of enterprises. Digital transformation, in turn, enables enterprises to continuously accumulate digital technology and digital resources, guiding them from internal single-subject innovation to dual-subject innovation, and ultimately forming a multi-subject innovation model. Thirdly, resource orchestration is a dynamic mechanism. Digital transformation promotes the evolution of enterprise innovation models through resource assembly, resource integration, and resource collaboration. This process not only optimizes the allocation of internal resources within the enterprise but also amplifies the scale effect of innovation through collaboration with external partners. Theoretically, this study aims to enrich the understanding of digital transformation in the context of innovation models for SMMEs. It particularly sheds light on the formation logic of innovation models during the digital transformation process, thereby filling a gap in the existing literature. At the practical level, it will have a certain reference value for the “empowering” and “enabling” processes involved in the digital transformation of SMMEs. It also provides practical guidance for SMMEs on how to achieve innovation during the digital transformation process.