Technological breakthroughs vs organizational change: who’s driving the digital future of SMEs? Evidence from resource orchestration

Purpose Despite considerable attention, the digital transformation of small and medium-sized enterprises (SMEs) remains slower than that of large enterprises, with high failure rates persisting. The aim of this study is to develop a framework to assess how resource orchestration and organizational change contribute to the success of SMEs’ digital transformation, focusing on the relative importance of technological breakthroughs and organizational change. Design/methodology/approach Through a systematic literature review and meta-analysis, we identify influential factors for transformation. Using fuzzy-set qualitative comparative analysis (fsQCA), we analyzed 78 SMEs listed on China’s A-share market, identifying three distinct pathways for effective transformation. Findings Results highlight digital technology resources, digital strategy resources, top management support, organizational structure, digital human resources, digital culture, external environment support and economic investment as pivotal factors. Additionally, findings reveal that technological breakthroughs initially drive transformation, while organizational change becomes increasingly important as the transformation process matures. Originality/value This study refines the Resource Orchestration theory by introducing the concept of “Inertia Alleviation,” offering a new perspective on how SMEs can overcome organizational inertia in digital transformation, which has not been sufficiently explored in existing literature.