Digitalization in small service firms: a strategic marketing perspective

Small businesses are the backbone of most economies, but often struggle to implement digitalization strategically and achieve long-term benefits. With many adopting a predominantly tactical approach, the extant literature offers limited strategic insights to support these firms. This paper examines digitalization from a strategic marketing perspective, focusing on environmental, organizational, and interorganizational factors to drive sustainable outcomes. A qualitative study was conducted transculturally across two contrasting contexts: Brazil and the UK. Grounded in the Marketing Systems Theory, the study contributes by offering a holistic view and demonstrating that marketing operates within a network of interconnected actors. The findings reveal that external factors, while significant, function as opportunities or threats, making internal mindset the critical differentiator, with leadership playing a pivotal role in driving change. This paper advances small business literature and offers a theoretical framework to guide managers in making strategic decisions regarding digitalization.