Digital transformation of SMB in the Republic of Moldova

Abstract

Currently, there are many reasons to improve digital transformation and the top reasons that SMBs are investing in digital technology are to attract new customers, improve employee productivity and streamline operations. At the same time with digital transformation comes change in the management of enterprises. Traditional, standard methods of management systems are becoming less effective. This paper includes the definition of the main aspects of digital transformation and identifies the results of influencing over results of national enterprises. Together with numerous advantages, digitalization also implies risks associated mainly with a lack of skills in the field of digitalization, digital crime, insufficient funds to support processes, and others. Considering that small and medium-sized enterprises in the Republic of Moldova are in a significant majority compared to other forms of business, the object of this study is small and medium-sized enterprises. The obvious advantages of SMEs associated with rapid adaptability, innovation, close communications, lack of bureaucracy, are often overridden by the problems inherent in this sector: low financial security, lack of specialists of various kinds, lack of strategic vision, and others. These and other specific problems can slow down the transformational processes that are rapidly affecting enterprises around the world. Therefore, today the state faces the task of supporting this sector on the path of upcoming transformations. CZU: 004.78:[334.012.63+334.012.64](478); JEL: M190.