Exploring Digitalization Challenges in German SMEs: A Gioia Method Approach

This paper addresses the challenges faced by small and medium-sized enterprises (SMEs) in Germany in adopting digital technologies, focusing on the barriers that hinder their digital transformation. SMEs are crucial to the German economy, yet especially SMEs with a low employee count experience more difficulties in embracing digitalization than SMEs with a larger employee count. This study therefore investigates the factors contributing to this digital divide, with particular attention to company size and its impact on digital transformation efforts. Thus, our research utilizes data from national SME digitalization surveys and further international sources. The data is examined through a qualitative analysis using the Gioia Method. Using this methodology, key challenges such as lack of digital skills, insufficient infrastructure, regulatory constraints, and financial limitations are identified. The results reveal that smaller SMEs, especially those with fewer than 10 employees, experience greater barriers to