Cost-Efficiency Trade-Offs in SMEs Digital Transformation: A Pathway Analysis

Abstract

Against the backdrop of digital technologies accelerating their penetration into all industrial sectors and the global industrial landscape undergoing profound restructuring, small and medium-sized enterprises (SMEs), as a vital component of the economic fabric, commonly face the dual pressures of technological iteration and cost constraints.SMEs often face difficulties in terms of transformation costs and efficiency. This article focuses on the vigorous development of the digital economy and deeply explores the digital transformation path of small and medium - sized enterprises (SMEs). By analyzing the cost difficulties faced by SMEs in the process of digital transformation and how to improve efficiency, combined with practical cases and literature research, it reveals the key factors affecting the transformation and proposes strategies to optimize the digital transformation of SMEs. The aim is to provide theoretical and practical guidance for SMEs to achieve sustainable development in the wave of the digital economy.

Keywords: Digital economy; Small and medium - sized enterprises(SMEs); Digital transformation; Cost; Efficiency

DOI: 10.7176/JESD/16-4-05

Publication date: June 30th 2025