Benefits and Importance of Digital Technologies as Digital Maturity Drivers: A Case Study of Finland

Abstract

This research explores the factors driving digitalization in Finnish SMEs and contributes to the discussion on Digital
Maturity Models (DMMs). It examines how perceived benefits and the importance of digital technologies influence SMEs'
digital capabilities. By identifying key motivators and barriers, the study aims to provide practical insights for both academics
and practitioners, bridging the gap between theoretical models and real-world applications. A stratified sample of 1002
Finnish SMEs is used. K-means clustering categorizes these companies into three distinct clusters based on their digital
maturity levels. Logistic regression models predict the likelihood of a company belonging to each cluster, using perceived
benefits and the importance of digital technologies as predictor variables. This approach systematically analyzes the
relationship between these factors and digital maturity, offering a robust framework for understanding digitalization in SMEs.
Additional analyses explore interaction effects between predictor variables, providing deeper insights into the dynamics of
digital transformation. The study yields six logistic regression models with 19 statistically significant coefficients (p<0.05).
Results indicate that perceived benefits and the importance of digitalization vary across clusters, highlighting different
motivators for digital initiatives based on digital maturity levels. SMEs with higher digital maturity perceive greater benefits
and place higher importance on different digital technologies compared to those with lower maturity. These findings
emphasize the need for tailored strategies to support digitalization efforts and reveal significant variations in the adoption
of specific technologies at different stages of digital maturity. The findings guide practitioners and academics in focusing on
relevant technologies and their outcomes concerning SMEs' digital maturity. Targeted interventions and support
mechanisms should address the specific needs of SMEs at various stages of digital maturity. The study contributes to the
evolution of DMMs by providing empirical evidence on the factors driving digitalization in SMEs and underscores the
importance of a phased approach to digital transformation. Future research should include cross-country comparisons and
longitudinal studies to enhance the reliability and validity of the results and understand the temporal aspects of digital
transformation.