…………………..COVER PAGE UNIVERSITY OF GHANA COLLEGE OF HUMANITIES UNIVERSITY OF GHANA BUSINESS SCHOOL THE DRIVERS, PROCESSES, AND OUTCOMES OF THE DIGITAL TRANSFORMATION OF SMES IN DEVELOPING COUNTRIES SAMUEL SYLVESTER ANIM-YEBOAH DEPARTMENT OF OPERATIONS AND MANAGEMENT INFORMATION SYSTEMS FEBRUART 2023 University of Ghana http://ugspace.ug.edu.gh TITLE PAGE UNIVERSITY OF GHANA COLLEGE OF HUMANITIES THE DRIVERS, PROCESSES AND OUTCOMES OF THE DIGITAL TRANSFORMATION OF SMES IN DEVELOPING COUNTRIES BY SAMUEL SYLVESTER ANIM-YEBOAH (ID. NO. 10097783) A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF DOCTOR OF PHILOSOPHY IN INFORMATION SYSTEMS DEPARTMENT OF OPERATIONS AND MANAGEMENT INFORMATION SYSTEMS FEBRUARY 2023 University of Ghana http://ugspace.ug.edu.gh i 8th February 2023 8th February 2023 8th February 2023 DECLARATION I declare that this thesis results from my work produced through research I conducted under supervision. This thesis has not been presented by anyone for any academic award at this or other institutions. All references to work done by others have been duly acknowledged and cited. This thesis has been prepared per the requirements of the School of Graduate Studies, University of Ghana. I am solely responsible for any shortcomings in this work. ……………..…………………... ….................................. SAMUEL SYLVESTER ANIM-YEBOAH Date (10097783) ………………………………… ………………………… Prof. Richard Boateng Date (Lead Supervisor) …………………………………. ………………………… Dr Emmanuel Awuni Kolog Date (Co-Supervisor) ………………………………….. ………………………… Dr Acheampong Owusu Date (Co-Supervisor) 8th February 2023 University of Ghana http://ugspace.ug.edu.gh ii ABSTRACT Digital technologies are reshaping the models, processes, culture, and customer experiences of organisations. This reshaping of organisations with fundamental changes resulting from the adoption of digital technologies and digitalisation is known as digital transformation (DT). Digital transformation tends to matter to all organisations, and small and medium enterprises (SMEs) are not left out. However, the review of extant literature concerning DT reveals SMEs' vulnerability, particularly those in developing countries (DCs). It shows that there is room for SMEs to gain more from DT, with three significant gaps that need research attention. First, there is a lack of agreement in the literature regarding what constitutes the DT drivers, processes and outcomes. Second, studies on DT, examine drivers, processes, and outcomes as independent constructs, and there is a paucity of research examining their interrelationships. Third, the current studies on DT in SMEs are silent on how the firms' managerial and organisational capabilities and capacities influence the drivers processes and outcomes. Lastly, in this regard, a theoretically grounded and practice-oriented framework for the DT of SMEs is lacking. Hence, most SMEs in DCs tend to trail the DT path arbitrarily. In response, this doctoral thesis seeks to address the above gaps and develop the framework by exploring the drivers, processes and outcomes of DT and the relationships among them while considering the influence of the capabilities and capacities of SMEs in DCs. To achieve this purpose, the following questions are asked: (i) What are the drivers, processes, and outcomes of the DT of SMEs in DCs? (ii) How do the drivers, processes, and outcomes influence one another, in the DT of SMEs in DCs? (iii) How do the SMEs capabilities and capacities influence the drivers, processes, and outcomes of the DT in DCs? University of Ghana http://ugspace.ug.edu.gh iii Such a study would be a strategic assessment of how to approach DT and achieve the desired outcomes. This assessment is critical in the current era, where digital innovation proliferation and social, economic and health challenges (including the COVID-19 pandemic) are compelling organisations to embrace DT. Hence, developing a framework to guide DT research and SMEs' practice of DT in DCs is a timely endeavour. To respond to the research questions, the study utilised the Adaptive Structuration Theory (AST) to conceptualise the DT drivers, processes, and outcomes. AST is appropriate because it highlights drivers of DT from both technological and organisational perspectives while focusing on the technology and organisation interaction processes as structuration and appropriation, resulting in the outcomes. The study further considered other literature to conceptualise the capabilities and capacities of SMEs. To facilitate the exploration, the study’s research strategy utilised a qualitative Delphi methodology from a critical realism perspective, with responses from sixteen purposively selected DT experts from six DCs. DT is a contemporary phenomenon with structures that need to be unearthed and explored to clarify its understanding and applications. Coupled with the lack of agreement on DT factors and the incomplete knowledge of the DT phenomenon, the research strategy was justified. In responding to the first research question, the study unearthed typologies of the DT drivers, processes, and outcomes to offer new insight into studying DT. The study revealed six dimensions of the drivers of DT. Among them, the technological, organisational, and environmental-related drivers have been previously established in literature. However, the dimensions of work tasks, emergent outputs and new rules and resources were found as newly University of Ghana http://ugspace.ug.edu.gh iv identified drivers of DT in this study, which hitherto were absent in literature. Again, the findings offer a novel classification of the technological-related drivers as dynamic (changing), steady (fixed), and spirit (goals and values) features. The steady features are the inherent and fixed structural attributes, such as comprehensiveness and accessibility. The dynamic features are the changing and improving attributes, like updatability, customisability and changing trends. The spirit features are the overall intentions regarding goals and values fundamental to the structural features, such as efficiency, effectiveness, and accuracy. The findings outline five DT processes: decision-making and adoption, implementation and use, changes in function and resources, adjustment and adaptation, and strategic shifts and positioning. Though application in practice may vary, most DT studies do not clearly define stepwise and sequential processes. The stepwise and sequential nature of the processes from this study is being advocated as an adaptable guide. Moreover, the findings reveal six DT outcomes: business image and value, work processes and functions, resources and abilities improvements, customer and stakeholder satisfaction, productivity and profitability, and undesirable consequences of technology use. However, embracing undesirable consequences as one of the possible outcomes is scarcely mentioned in DT literature. For the second research question, the study reveals the relationships and influences among the factors. These effects are the influence of drivers on processes, the influence of drivers on outcomes, the influence of processes on outcomes, and the influence of outcomes on drivers. These influences were hitherto not established in literature. For example, technological features drivers influence the decision-making and adoption, implementation and use, and adjustment and adaptation processes. In contrast, work-task drivers influence the changes in functions and resources alone. University of Ghana http://ugspace.ug.edu.gh v Regarding the third research question, the study determined four major dimensions of SMEs capabilities and capacities, which influences the DT drivers, processes, and outcomes. The study also identifies novel classifications of capabilities and capacities as intrinsic and extrinsic, and managerial capabilities as attributes and relationships. These findings offer the opportunity to know which capabilities and capacities to leverage and infuse and how they influence the drivers and processes to achieve the desired outcomes. For example, whiles the managerial capacities influence the decision-making and adoption, implementation and use, and adjustment and adaptation, the organisational capacity instead influences the changes in function and resources, adjustment and adaptation, and strategic shifts and positioning. The findings culminate into a theoretical and practice-based framework (DPOCC Framework), with simplified steps and two-pronged approaches: Driver-led approach is to identify the compelling drivers and optimise the matching processes to achieve corresponding outcomes while considering the capabilities and capacities influence. The outcome-led approach is to specify the desired outcomes and optimise matching processes with corresponding drivers while considering the effects of capabilities and outcomes. This framework offers SME owners, entrepreneurs, and managers the opportunity to critically examine and improve their DT practices. Its successful post-study evaluation affirmed this thesis’ contribution to practice. Policy-wise, the findings guide stakeholders such as government and industry to appreciate the DT of SMEs regarding the drivers, processes, outcomes, capabilities, and capacities. The study also inures itself as a guiding solution to the need for DT arising from the new normal of business stemming from the COVID-19 pandemic. Hence, this study is critical in providing strategic digital growth and sustenance directions. The study’s contributions have been published as two journal articles, three book chapters and two conference papers. University of Ghana http://ugspace.ug.edu.gh vi DEDICATION TO THE GLORY OF GOD This thesis is dedicated to my beloved wife, Juliana Gloria Anim-Yeboah, and my lovely children, Dorothy, Lemuel, and Hanniel. Undertaking a PhD programme and writing the thesis is like running a marathon. The first thought is that the journey is tedious and almost impossible. But gradually, the vision gets clearer, and the motivation becomes stronger to continue. Then the realisation unfolds, "Yes, I can do it." And now, “I have done it.” This realisation brings into perspective the quote by Nelson Mandela: " .. it always seems impossible until it is done." Meanwhile, Jesus Christ also assures in Matt. 19:26 (NIV) that: " .. with men, this is impossible, but with God, all things are possible." Now that the thesis has been completed, King Solomon cautions in Eccl. 12:12-13 (NIV).: "Be warned, my son, of anything in addition to them. Of making many books, there is no end, and much study wearies the body. Now that all has been heard, here is the conclusion of the matter: Fear God and keep his commandments, for this is the duty of all humankind." I then cherish and obey this instruction because of the advice in Prov. 9:10 (NIV): “The fear of the LORD is the beginning of wisdom, And knowledge of the Holy One is understanding.” University of Ghana http://ugspace.ug.edu.gh vii ACKNOWLEDGMENT Amidst the efforts, arduous work, frustrations and uncertainties, passion and ambition, God’s grace and favour provide the impetus to continue this long, sometimes lonely journey. So, my uttermost appreciation goes to the Lord God for granting me the grace, favour and strength to go through the PhD course and complete the thesis. Nevertheless, it has taken the guidance of supervisors, encouragement of peers, and the support of loved ones, to accomplish this mission that seemed impossible until it was completed. Hence, my expression of gratitude to all who helped make this thesis a success and without whom it would not have been possible to achieve this feat. I thank my lead supervisor, Professor Richard Boateng, for his guidance and contribution, throughout the work. I am also grateful to my co-supervisors, Dr Emmanuel Awuni Kolog and Dr Acheampong Owusu, for their assistance and to Prof John Effah, for his concern. I thank the experts who participated in the study as data respondents, reviewers, analysts, and all who helped with data and information, especially Albert Banunle. I also thank my PhD classmates, colleagues and friends, notably Yaa Amponsah Twumasi and Mansa Preko, for their encouragement. Special appreciation also goes to my employees, professional and academic colleagues, and Christian brethren for their support and prayers. Finally, to my wife, children, siblings, and extended family, whose love, concern, encouragement, and prayer support throughout the PhD course kept me going, I say thank you very much, and may God richly bless you. University of Ghana http://ugspace.ug.edu.gh viii TABLE OF CONTENT COVER PAGE............................................................................................................................ i TITLE PAGE .............................................................................................................................. i DECLARATION ........................................................................................................................ i ABSTRACT ............................................................................................................................... ii DEDICATION .......................................................................................................................... vi ACKNOWLEDGMENT.......................................................................................................... vii TABLE OF CONTENT .......................................................................................................... viii LIST OF FIGURES ............................................................................................................... xvii LIST OF TABLES .................................................................................................................. xix LIST OF ABBREVIATIONS ................................................................................................. xxi CHAPTER ONE ........................................................................................................................ 1 1 INTRODUCTION .............................................................................................................. 1 1.1 Research Background .................................................................................................. 1 1.2 Research Problem ........................................................................................................ 4 1.3 Research Purpose ...................................................................................................... 12 1.4 Research Objectives .................................................................................................. 12 1.5 Research Questions ................................................................................................... 13 1.6 Research Context....................................................................................................... 15 1.7 Research Significance ............................................................................................... 20 1.8 Chapter Organisation................................................................................................. 21 University of Ghana http://ugspace.ug.edu.gh ix CHAPTER TWO ..................................................................................................................... 23 2 REVIEW OF DIGITAL TRANSFORMATION LITERATURE .................................... 23 2.1 Chapter Overview ..................................................................................................... 23 2.2 Literature Review Methodology ............................................................................... 23 2.3 Conceptualising the Key Concepts in DT ................................................................. 25 2.3.1 Digitisation ......................................................................................................... 26 2.3.2 Digitalisation ...................................................................................................... 27 2.3.3 Digital Innovation .............................................................................................. 28 2.3.4 Digital Transformation....................................................................................... 28 2.3.5 IT-Enabled Transformation ............................................................................... 30 2.4 Digital Technology Trends and Types in DT............................................................ 31 2.5 Drivers of DT ............................................................................................................ 33 2.5.1 Digital Technology Drivers ............................................................................... 36 2.5.2 Internal System Drivers ..................................................................................... 36 2.5.3 External Environment Drivers ........................................................................... 37 2.6 Processes of DT ......................................................................................................... 38 2.6.1 Decision and Adoption Processes ...................................................................... 40 2.6.2 Implementation and Use Processes .................................................................... 41 2.6.3 Changes to Organisational Processes................................................................. 42 2.6.4 Adjustments by Organisation Processes ............................................................ 42 2.6.5 Strategic Positioning Processes.......................................................................... 42 2.7 Outcomes of DT ........................................................................................................ 43 2.7.1 Business model and Market Changes Outcomes ............................................... 45 2.7.2 Work Processes and Function Outcomes ........................................................... 46 2.7.3 Productivity, Profitability and Performance Outcomes ..................................... 46 University of Ghana http://ugspace.ug.edu.gh x 2.7.4 Internal Resource and Competence Outcomes .................................................. 47 2.7.5 Customers and Stakeholders' Outcomes ............................................................ 47 2.7.6 Security and Risks Outcomes ............................................................................ 47 2.8 Capabilities and Capacities of SMEs for DT ............................................................ 48 2.8.1 Managerial Capabilities and Capacities ............................................................. 50 2.8.2 Organisational Capabilities and Capacities ....................................................... 53 2.9 DT of SMEs in DCs .................................................................................................. 55 2.9.1 Digital Technologies in DT of SMEs in DCs .................................................... 57 2.9.2 Drivers in DT of SMEs in DCs .......................................................................... 58 2.9.3 Processes in DT of SMEs in DCs ...................................................................... 58 2.9.4 Outcomes in DT of SMEs in DCs ..................................................................... 58 2.9.5 Capabilities and Capacities in DT of SMEs in DCs .......................................... 59 2.10 Research Gaps of Interest to this Doctoral Study ..................................................... 60 2.11 Chapter Summary ...................................................................................................... 61 CHAPTER THREE ................................................................................................................. 62 3 THEORETICAL FOUNDATIONS AND RESEARCH FRAMEWORK ....................... 62 3.1 Chapter Overview ..................................................................................................... 62 3.2 Theory, Model, Theoretical and Conceptual Frameworks ........................................ 63 3.2.1 Theories and Models in Research ...................................................................... 63 3.2.2 Theoretical and Conceptual Frameworks in Research....................................... 64 3.3 Theories, Models and Frameworks for IS and DT Research .................................... 65 3.3.1 Main Theories, Models and Frameworks in IS for DT Research ...................... 66 3.3.2 Other Specific DT Frameworks ......................................................................... 68 3.4 Theoretical Framework ............................................................................................. 71 University of Ghana http://ugspace.ug.edu.gh xi 3.4.1 Adaptive Structuration Theory (AST) Overview .............................................. 72 3.4.2 Propositions of the Adaptive Structuration Theory (AST) ................................ 75 3.4.3 Constructs of the Adaptive Structuration Theory (AST) ................................... 76 3.4.4 Criticism of the AST .......................................................................................... 77 3.4.5 Prior Research with AST ................................................................................... 79 3.4.6 Theoretical Framework for the Study based on AST ........................................ 80 3.5 Conceptual Framework ............................................................................................. 82 3.5.1 Conceptualising the Drivers of DT .................................................................... 82 3.5.2 Conceptualising the Processes of DT ................................................................ 84 3.5.3 Conceptualising the Outcomes of DT ................................................................ 86 3.5.4 Conceptualising the Capabilities and Capacities of SMEs ................................ 87 3.5.5 Integration of the Distinct Conceptualisations ................................................... 89 3.6 Chapter Summary ...................................................................................................... 93 CHAPTER FOUR .................................................................................................................... 94 4 RESEARCH METHODOLOGY ..................................................................................... 94 4.1 Chapter Overview ..................................................................................................... 94 4.2 Research Strategy ...................................................................................................... 94 4.2.1 Research Philosophy .......................................................................................... 95 4.2.2 Research Approach ............................................................................................ 97 4.2.3 Research Design................................................................................................. 98 4.2.4 Research Sampling........................................................................................... 102 4.2.5 Experts Selected for the Study ......................................................................... 105 4.3 Data Collection ........................................................................................................ 107 4.3.1 Data Collection Instrument .............................................................................. 108 University of Ghana http://ugspace.ug.edu.gh xii 4.3.2 Preparation for Data Collection ....................................................................... 109 4.3.3 Delphi Round 1 ................................................................................................ 110 4.3.4 Delphi Round 2 ................................................................................................ 111 4.3.5 Delphi Round 3 ................................................................................................ 111 4.4 Data Analysis .......................................................................................................... 112 4.4.1 Analytical Process Framework ........................................................................ 112 4.4.2 Analysis of Preliminary Responses on Digital Technologies used in DT ....... 116 4.4.3 Analysis of Research Question 1, Responses on DT Factors .......................... 117 4.4.4 Analysis of Research Question 2 Responses on DT Factors Relationships .... 118 4.4.5 Analysis of Research Question 3 Responses on Influence of SMEs Abilities 119 4.5 Ethical Considerations............................................................................................. 120 4.6 Chapter Summary .................................................................................................... 121 CHAPTER FIVE ................................................................................................................... 122 5 RESEARCH FINDINGS ................................................................................................ 122 5.1 Chapter Overview ................................................................................................... 122 5.2 Digital Technologies Deployed in the DT of SMEs in DCs ................................... 123 5.3 Drivers, Processes, and Outcomes of the DT of SMEs in DCs .............................. 124 5.3.1 Drivers of the DT of SMEs in DCs .................................................................. 124 5.3.2 Processes of the DT of SMEs in DCs .............................................................. 126 5.3.3 Outcomes of the DT of SMEs in DCs ............................................................. 126 5.4 Relationships among Drivers, Processes, and Outcomes of SMEs DT in DCs ...... 128 5.4.1 Influence of Drivers on Processes of DT of SMEs in DCs.............................. 128 5.4.2 Influence of Drivers on Outcomes of DT of SMEs in DCs ............................. 130 5.4.3 Influence of Processes on Outcomes of DT of SMEs in DCs ......................... 133 University of Ghana http://ugspace.ug.edu.gh xiii 5.4.4 Influence of Outcomes on Drivers of DT of SMEs in DCs ............................. 135 5.5 SMEs capabilities and Capacities influence on DT in DCs .................................... 137 5.5.1 SMEs Capabilities and Capacities in DT ......................................................... 138 5.5.2 SMEs Capabilities and Capacities Influence on DT Drivers ........................... 139 5.5.3 SMEs Capabilities and Capacities Influence on the DT Processes ................. 141 5.5.4 SMEs Capabilities and Capacities Influence on DT Outcomes....................... 143 5.6 Chapter Summary .................................................................................................... 145 CHAPTER SIX ...................................................................................................................... 146 6 DISCUSSIONS OF FINDINGS ..................................................................................... 146 6.1 Chapter Overview ................................................................................................... 146 6.2 Digital Technologies Deployed in the DT of SMEs ............................................... 147 6.3 Drivers, Processes, and Outcomes of the DT of SMEs ........................................... 153 6.3.1 Drivers of DT of SMEs in DCs........................................................................ 153 6.3.2 Processes of DT of SMEs in DCs .................................................................... 160 6.3.3 Outcomes of DT of SMEs in DCs ................................................................... 165 6.4 Influences of the Drivers, Processes, and Outcomes of DT of SMEs ..................... 171 6.4.1 Influence of Drivers on the Processes of DT of SMEs .................................... 172 6.4.2 Influence of Drivers on the Outcomes of DT of SMEs ................................... 174 6.4.3 Influence of Processes on the Outcomes of DT of SMEs ................................ 178 6.4.4 Influence of Outcomes on the Drivers of DT of SMEs ................................... 180 6.5 SMEs capabilities and capacities influence on DT Factors .................................... 183 6.5.1 SMEs Capabilities and Capacities in DT ......................................................... 183 6.5.2 SMEs Capabilities and Capacities influence on DT Drivers ........................... 187 6.5.3 SMEs Capabilities and Capacities Influence on DT Processes ....................... 190 University of Ghana http://ugspace.ug.edu.gh xiv 6.5.4 SMEs Capabilities and Capacities Influence on DT Outcomes....................... 193 6.6 Chapter Summary .................................................................................................... 196 CHAPTER SEVEN ............................................................................................................... 197 7 FRAMEWORK DEVELOPMENT ................................................................................ 197 7.1 Chapter Overview ................................................................................................... 197 7.2 Frameworks for the Influences of the Drivers, Processes, and Outcomes .............. 198 7.2.1 Framework for the Influence of DT Drivers on Processes .............................. 198 7.2.2 Framework for the Influence of DT Drivers on Outcomes.............................. 200 7.2.3 Framework for the Influence of DT Processes on Outcomes .......................... 201 7.2.4 Framework for the Influence of DT Outcomes on Driver ............................... 202 7.3 Frameworks for the SMEs capabilities and Capacities’ influence on DT .............. 203 7.3.1 Framework for the Influence of Capabilities and Capacities on DT Drivers .. 204 7.3.2 Framework for the Influence of Capabilities and Capacities and DT Processes 205 7.3.3 Framework for the Influence of Capabilities and Capacities and DT Outcomes 206 7.4 Theoretical and Practice-Based Framework for the DT of SMEs .......................... 207 7.4.1 Integrated Framework Development for the DT ............................................. 207 7.4.2 Development of the Theoretical and Practice-Based Framework (DPOCC) .. 210 7.4.3 The Approaches to the DPOCC Framework for DT ....................................... 211 7.5 Chapter Summary .................................................................................................... 215 CHAPTER EIGHT ................................................................................................................ 216 8 POST-STUDY EVALUATION OF THE DPOCC FRAMEWORK............................. 216 8.1 Chapter Overview ................................................................................................... 216 University of Ghana http://ugspace.ug.edu.gh xv 8.2 The Purpose and Methods of the Post-Study Evaluation ........................................ 216 8.3 The Workshop with SMEs for the Post-Study Framework Evaluation .................. 218 8.3.1 The Methodology for the Workshop with SMEs ............................................. 218 8.3.2 The Feedback and Lessons from the Workshop .............................................. 219 8.3.3 The Media Coverage of the Workshop ............................................................ 220 8.4 The ERP Software Implementation for the Post-Study Framework Evaluation ..... 221 8.4.1 The Methodology for the System Implementation .......................................... 221 8.4.2 Case Analysis of the Companies for the Framework Evaluation .................... 223 8.4.3 The DPOCC Framework Approaches for the System Implementation ........... 224 8.4.4 The Feedback and Lessons from the System Implementation ......................... 225 8.5 Chapter Summary .................................................................................................... 226 CHAPTER NINE ................................................................................................................... 227 9 SUMMARY, CONTRIBUTIONS AND CONCLUSIONS ........................................... 227 9.1 Chapter Overview ................................................................................................... 227 9.2 Summary of the Research Activities ....................................................................... 227 9.3 Summary of Research Findings and Framework Development.............................. 230 9.3.1 Summary of Preliminary Findings: (Digital Technologies Used in DT) ......... 230 9.3.2 Summary of Research Questions Findings ...................................................... 230 9.3.3 Summary of Frameworks Developed for DT .................................................. 236 9.4 Validity and Reliability of Findings ........................................................................ 237 9.4.1 Reliability ......................................................................................................... 237 9.4.2 Validity ............................................................................................................ 238 9.5 Contributions of the Study ...................................................................................... 240 9.5.1 Contribution to Theory .................................................................................... 240 University of Ghana http://ugspace.ug.edu.gh xvi 9.5.2 Contribution to Research ................................................................................. 240 9.5.3 Contribution to Literature ................................................................................ 242 9.5.4 Contribution to Practice ................................................................................... 244 9.5.5 Contribution to Policy ...................................................................................... 246 9.6 Recommendations for the Future ............................................................................ 247 9.6.1 Recommendations for Future Research ........................................................... 247 9.6.2 Recommendations for Future Practice and Policy ........................................... 248 9.7 Conclusion ............................................................................................................... 250 REFERENCES ...................................................................................................................... 251 APPENDICES ....................................................................................................................... 296 Appendix 1 Questionnaire for Delphi Round One ............................................................ 296 Appendix 2 Questionnaire for Delphi Round Two ........................................................... 300 Appendix 3 Questionnaire for Delphi Round Three ......................................................... 308 Appendix 4 Interview Guide ............................................................................................. 316 Appendix 5 Ethical Clearance Letter ................................................................................ 322 Appendix 6 Joy Online Report on Workshop ................................................................... 323 Appendix 7 Citi Newsroom Report on Workshop ............................................................ 328 Appendix 8 List of Publications ........................................................................................ 331 University of Ghana http://ugspace.ug.edu.gh xvii LIST OF FIGURES Figure 3.1 AST Framework ..................................................................................................... 74 Figure 3.2 The theoretical framework for the Study................................................................ 81 Figure 3.3 Categories of the Drivers of DT ............................................................................. 83 Figure 3.4 The Processes Flow and Activities of DT .............................................................. 85 Figure 3.5 Categories of the Processes of DT.......................................................................... 86 Figure 3.6 Categories of the Outcomes of DT ......................................................................... 87 Figure 3.7 Categories of the Capabilities and Capacities of SMEs ......................................... 88 Figure 3.8 Pre-Study Conceptual Framework for the DT of SMEs ........................................ 90 Figure 3.9 Decomposed Pre-Study Conceptual Framework for the DT of SMEs ................... 91 Figure 3.10 Simplified Pre-Study Conceptual Framework of DT of SMEs ............................ 92 Figure 4.1 Data Analysis Process Framework (Researcher’s framework) ............................ 116 Figure 6.1 Data Structure of Digital Technologies used in DT of SMEs .............................. 148 Figure 6.2 Typologies of Digital Technologies used in DT of SMEs ................................... 149 Figure 6.3 Data Structure of Drivers of DT of SMEs ............................................................ 154 Figure 6.4 Data Structure of Processes of DT of SMEs ........................................................ 161 Figure 6.5 Data Structure of Outcomes of DT of SMEs ........................................................ 166 Figure 6.6 Data Structure of SMEs Capabilities and Capacities in DT of DCs .................... 184 Figure 7.1 The Drivers-Processes Framework of DT ............................................................ 199 Figure 7.2 The Drivers-Outcomes Framework of DT ........................................................... 200 Figure 7.3 The Processes-Outcomes Framework of DT ........................................................ 201 Figure 7.4 The Outcomes - Driver Framework of DT ........................................................... 202 Figure 7.5 The Capabilities and Capacities - Drivers Framework in DT .............................. 204 Figure 7.6 The Capabilities and Capacities - Processes Framework of DT .......................... 205 Figure 7.7 The Capabilities and Capacities - Outcomes Framework of DT .......................... 206 University of Ghana http://ugspace.ug.edu.gh xviii Figure 7.8 Post-Study Framework for the DT of SMEs ........................................................ 208 Figure 7.9 Simplified Post-Study Framework ....................................................................... 209 Figure 7.10 Digital Transformation Framework (DPOCC Framework) ............................... 211 Figure 7.11 DPOCC Framework (with Driver-Led and Outcome-Led Approaches) ........... 212 Figure 7.12 DPOCC Framework - Steps for Driver-Led Approach ...................................... 213 Figure 7.13 DPOCC Framework - Steps for Outcome-Led Approach .................................. 214 University of Ghana http://ugspace.ug.edu.gh xix LIST OF TABLES Table 2.1 Definitions of Digitisation ....................................................................................... 26 Table 2.2 Definitions of Digitalisation .................................................................................... 27 Table 2.3 Definitions of Digital Innovation ............................................................................. 28 Table 2.4 Definitions of Digital Transformation ..................................................................... 29 Table 2.5 Digital Technology Trends and Types DT .............................................................. 32 Table 2.6 Drivers of DT ........................................................................................................... 34 Table 2.7 Processes of DT ....................................................................................................... 39 Table 2.8 Outcomes of DT....................................................................................................... 44 Table 2.9 SMEs Capabilities and Capacities for DT ............................................................... 48 Table 2.10 DT of SMEs in DCs ............................................................................................... 56 Table 2.11 Summary of Research Gaps of Interest to this Thesis ........................................... 60 Table 3.1 Legend of Colour Codes in Figures of Chapter 3 .................................................... 62 Table 3.2 Main Theories Models and Frameworks in IS for DT Research ............................. 66 Table 3.3 Other Specific DT Frameworks ............................................................................... 69 Table 4.1 Profile of the Experts as Study Participants........................................................... 106 Table 4.2 Summary of the Profile Attributes of the Experts as Study Participants ............... 106 Table 4.3 Summary of Data Collection Activities ................................................................. 107 Table 5.1 Legend of Colour Codes in Tables of Chapter 5 ................................................... 122 Table 5.2 Typologies of Digital Technologies Used in DT ................................................... 123 Table 5.3 Typologies of Drivers of DT of SMEs .................................................................. 125 Table 5.4 Typologies of Processes of DT .............................................................................. 126 Table 5.5 Typologies of Outcomes of DT ............................................................................. 127 Table 5.6 Typologies of Influence of Drivers on the Processes of DT .................................. 128 Table 5.7 Typologies of Influence of Drivers on the Outcomes of DT ................................. 131 University of Ghana http://ugspace.ug.edu.gh xx Table 5.8 Typologies of Influence of Processes on the Outcomes of DT ............................. 133 Table 5.9 Typologies of Influence of Outcomes on the Drivers of DT ................................. 135 Table 5.10 Typologies of SME Capabilities and Capacities in DT of DCs .......................... 138 Table 5.11 Typologies of Effects of SMEs capabilities and Capacities on the Drivers of DT ................................................................................................................................................ 139 Table 5.12 Typologies of Effects of SMEs capability and Capacity on the Processes of DT ................................................................................................................................................ 141 Table 5.13 Typologies of Effects of Capabilities and Capacities on the Outcomes of DT ... 143 Table 6.1 Legend of Colour Codes in Tables and Figures of Chapter 6 ............................... 146 Table 6.2 Typology of Digital Technologies in DT of SMEs ............................................... 152 Table 6.3 Typology of Drivers of DT of SMEs ..................................................................... 159 Table 6.4 Typology of Processes of DT of SMEs ................................................................. 165 Table 6.5 Typology of Outcomes of DT of SMEs................................................................. 171 Table 6.6 Typology of Influence of Drivers on Processes of DT of SMEs ........................... 174 Table 6.7 Typology of Influence of Drivers on Outcomes of DT of SMEs .......................... 177 Table 6.8 Typology of Influence of Processes on Outcomes of DT of SMEs ....................... 179 Table 6.9 Typology of Influence of Outcomes on Drivers of DT of SMEs .......................... 182 Table 6.10 Typology of Capabilities and Capacities of SMEs .............................................. 187 Table 6.11 Typology of SMEs Capabilities and Capacities influence on Drivers of DT ...... 189 Table 6.12 Typology of SMEs Capabilities and Capacities influence on Processes of DT .. 192 Table 6.13 Typology of SMEs Capabilities and Capacities influence on Outcomes of DT . 195 Table 7.1 Legend of Colour Codes in Figures of Chapter 7 .................................................. 197 Table 8.1 The Case Analysis of the Companies for the Framework Evaluation ................... 223 Table 8.2 The DPOCC Approaches Used for the System Implementation ........................... 224 Table 9.1 Summary of Research Questions Findings ............................................................ 231 University of Ghana http://ugspace.ug.edu.gh xxi LIST OF ABBREVIATIONS AIT - Advanced Information Technology AST - Adaptive Structuration Theory COVID-19 - Corona Virus Disease - 2019 CRM - Customer Relation Management DCs - Developing Countries DE - Developing Economy DMC - Dynamic Managerial Capabilities DPOCC - Drivers, Processes, Outcomes, Capabilities and Capacities, DSR - Design Science Research DT - Digital Transformation EC - European Commission ERP - Enterprise Resource Planning EU - European Union ICT - Information and Communication Technologies IT - Information Technology IoT - Internet of Things MRP - Manufacturing Resource Planning MSME - Micro, Small and Medium Enterprise OECD - Organisation for Economic Corporation and Development RBV - Resource-Based View SME - Small and Medium Enterprise University of Ghana http://ugspace.ug.edu.gh 1 CHAPTER ONE 1 INTRODUCTION 1.1 Research Background The emergence and use of innovative and digital technologies have shaped and transformed society and organisations globally (Bughin et al., 2017). The proliferation and adoption of digital technology platforms and tools have transformed and permeated all facets of organisations and societies (Garcia, 2018). The distinctions that organisations and societies have achieved may be ascribed to the advancement, acceptance, and use of digital technologies and innovations (Yunis et al., 2018). The integration of digital technologies as part of humankind's daily work and life is described as digitalisation (Bughin et al., 2017; Yunis et al., 2018). Digitalisation has been described in many ways by different authors. According to Ochs and Riemann (2018), digitalisation integrates digital technologies into organisations and societies by digitising things in daily life. Furthermore, digitalisation involves adopting or using digital technologies to modify business structures, systems, and strategies (Bican & Brem, 2020; Gobble, 2018). Digitalisation that has transformed and continues to transform businesses and organisations is described as Digital Transformation (DT). The term DT is also used in organisations to refer to modest digital technology initiatives such as putting services online and the extensive digitalisation of the entire enterprise (Gong & Ribiere, 2021). Generally, firms' operational and organisational changes resulting from adopting and digitalising digital technologies have also been designated DT (Ziyadin et al., 2019). According to Gong and Ribiere (2021, p. 12), DT University of Ghana http://ugspace.ug.edu.gh 2 is a “Fundamental change process, enabled by the innovative use of digital technologies, accompanied by the strategic leverage of key resources and competencies, aiming to radically improve an entity and redefine its value proposition for its stakeholders.” (An entity could be an organisation, an institution, a business network, a firm, an industry, or a society). Even though DT is a lately conceptualised term (Mergel et al., 2019), the knowledge of digital technology adoption and adaptation has existed for a much more extended period with past studies and literature (Bockshecker et al., 2018). Meanwhile, adopting digital technologies results from a drive and motivation to use and benefit from the technologies. At the same time, specific processes must be followed in the expected transformation to attain the anticipated positive outcomes (Liere-Netheler et al., 2018). Therefore, the drivers, processes and outcomes of DT are essential factors in any digitalisation effort, as the correct drivers and the appropriate processes may determine the proper outcomes. The drivers are attributes that influence and enable the occurrence of DT. In contrast, processes are the specific activities needed for DT, while outcomes are the emerging benefits and outputs realised in DT (Morakanyane et al., 2017). The advent and permeation of DT could be considered essential for the survival of most small and medium enterprises (SMEs). SMEs are firms that employ a maximum of 249 persons, with further categorisation as micro (1 to 9), small (10 to 49), and medium (50-249) employee sizes (OECD, 2017). DT promotes the automation of tasks and satisfies SMEs' core organisational, management, and employee needs (Saarikko et al., 2020). It also facilitates communication, simplifies processes, and offers prospects for managing SMEs' business records and data analytics (Ismail et al., 2017). Without the commitment to adopt digital technologies and innovations, and the obligation to sustain DT, most businesses and, for that matter, SMEs may University of Ghana http://ugspace.ug.edu.gh 3 not be as productive as anticipated (Berman & Bell, 2011; Li, 2020). Successful DT helps to empower organisations to achieve fast revenue growth, promote sustainable profitability gains, and boost market share, and SMES are no exception (Parida et al., 2019). Meanwhile, there is enough proof that larger and more prominent firms usually have better capabilities and capacities to successfully leverage digital technologies (Parida et al., 2019). However, smaller, and less prominent firms lack the capabilities and capacities to leverage digital technologies, which could lead to failure in transforming digitally (Saarikko et al., 2020). These two factors of capabilities and capacities constitute the dimensions of managerial and organisational abilities that can influence the DT of SMEs (Anderson & Adams, 2019; Helfat & Winter, 2011). Capabilities refer to the features, abilities, faculties, or processes that can be achieved, developed or improved. In contrast, capacities refer to the features, abilities, or resources that can be possessed or exist (Parker, 2018). SMEs vulnerability in capabilities and capacities is prominent in developing countries (DCs) (Al Maamari & Bhuiyan (2021). Hence, due to capabilities and capacities challenges, digitalisation could be a mirage for some SMEs in DCs (Priyono et al., 2020). The managerial and organisational capabilities and capacities help enterprises negotiate the digitalisation curve (Anderson & Adams, 2019; Helfat & Winter, 2011). Therefore, capabilities and capacities contribute to establishing DT efforts (Li, 2020). Meanwhile, SMEs' capabilities and capacities could further influence the factors of DT drivers, processes and outcomes, particularly in DCs. Consequently, it is crucial to examine DT drivers, processes, and outcomes, the relationships among them, and the influencing effect of the SMEs' capabilities and capacities. University of Ghana http://ugspace.ug.edu.gh 4 1.2 Research Problem Some studies have emphasised that advances in digital technologies over time influence corresponding changes in enterprises or organisations undergoing DT (Bockshecker et al., 2018; Li et al., 2018). Moreover, digital technologies shape entrepreneurial trajectories, and their intersection constitutes the fundamentals of the DT of enterprises (Nambisan, 2017). However, the working mechanisms of such trajectories in digital entrepreneurship remain unexplained (Nambisan, 2017). Therefore, research on the involvement of digital technologies in shaping organisational transformation and entrepreneurial trajectories, and for that matter, research on DT and its conceptualisation, is called for (Nambisan, 2017). Meanwhile, a review of the extant literature on the DT of SMEs reveals some significant gaps that are worthy of consideration in DT research. First, as a new field, there is a lack of agreement on what constitutes DT drivers, processes, and outcomes (Liere-Netheler et al., 2018). Meanwhile, some research pieces have unearthed different but related factors of DT of SMEs (Liere-Netheler et al., 2018). Moreover, new external factors like the COVID-19 pandemic are beginning to drive DT and generate significant outcomes. This trend and effect call for a review of DT drivers and outcomes (Indriastuti & Fuad, 2020; Kumar & Ayedee, 2021; Priyono et al., 2020). Meanwhile, the rapid changes in digital technologies and the dynamic nature of DT result in changing drivers over time, with possible changes in corresponding processes and outcomes (Châlons & Dufft, 2017). Therefore, periodic reviews of the drivers of DT and other factors like DT processes and DT outcomes are recommended to reflect the changing trends and nature of technologies and University of Ghana http://ugspace.ug.edu.gh 5 organisations (Hanelt et al., 2021; Solis & Littleton, 2017; Verhoef et al., 2021). Outcomes of DT have even been identified as major drivers of DT, and Mahmood et al. (2019), acknowledge the lack of studies and recommend further studies in that direction. Moreover, Berghaus and Back (2017) suggest that future studies consider the DT approaches and effects in different situational contexts. Hence, exploring the drivers, processes and outcomes of DT would help bring some understanding and improvement to the DT phenomenon. Second, current studies on DT examine DT drivers, processes, and outcomes as independent constructs (Elia et al., 2020; Ivančić et al., 2019; Osmundsen et al., 2018), and there is a paucity of studies that examines the interrelationships among them (Hrustek et al., 2019; Liere- Netheler et al., 2018). Moreover, Reis et al. (2018) confirm that there is not much literature on the influence of the drivers on the processes and outcomes of DT. Meanwhile, recent research shows that a strong appreciation of the factors driving the need to use digital technologies and their influence on DT outcomes is necessary, yet lacking in the literature (Osmundsen et al., 2018; Parida et al., 2019). Beyond adoption, it is essential to assess how the same drivers of adoption may influence the DT processes and the outcomes (Parida et al., 2019). Enterprise leadership might be interested in measuring the success of digital initiatives and the underlying causes of the success. However, without understanding what drives success factors further, it will be challenging to know how they influence success (Liere-Netheler et al., 2018). Therefore, it is crucial to investigate the nature of drivers and their influences on other factors of the DT to shape a mature research discussion and understand the associated disruptive change (Liere-Netheler et al., 2018). University of Ghana http://ugspace.ug.edu.gh 6 Liere-Netheler et al. (2018) strongly call for further research and more insight into the effects of drivers on outcomes beyond mere identification. Then again, Hrustek et al. (2019) classify DT drivers as customer-driven, technology-driven, and organisational-driven. This classification only suggests that the DT drivers may influence DT outcomes and create business models differently, but Hrustek et al. (2019) do not show proof of such a relationship. Hrustek et al. (2019) further emphasised that determining the influences of the DT drivers and their types on other factors is more critical than merely identifying them. Therefore, understanding the concept of DT and clarifying the related factors and their influences is imperative in contemporary times (Muditomo & Wahyudi, 2021). Third, the current studies on DT in SMEs are silent on how the capabilities and capacities of firms influence DT drivers, processes, and outcomes (Muditomo & Wahyudi, 2021; Tarutė et al., 2018). Understanding the influence of capabilities and capacities on DT drivers, processes, and outcomes will likely serve as a strategic assessment of how to approach DT and achieve the expected outcomes (Zhang et al., 2022). Moreover, Nambisan et al. (2019) express the possibility for potential research to embrace a universal attitude of considering firms' capabilities and capacities as influencing digitalisation at various levels and from disparate disciplinary viewpoints. Meanwhile, Li et al. (2018) emphasise the need for further research in tackling other aspects of DT, like organisational structure, capacities, capabilities, and procedures. Additional emphasis is also placed on SMEs' capability and capacity building and their influence on DT and entrepreneurship (Li et al., 2018; Vial, 2019). Furthermore, any organisational variations due to DT depend on the capabilities and capacities of the firms (Ambrosini & Altintas, 2019; Helfat & Martin, 2015; Helfat & Winter, 2011). Capabilities and capacities vary in different University of Ghana http://ugspace.ug.edu.gh 7 situational contexts, and there is a need to consider the DT approaches and effects in different contexts (Berghaus and Back, 2017). Moreover, SMEs in DCs have apparent capabilities and capacities limitations (Handoko et al., 2019). Due to these limitations, the potential of DT as a tool for SMEs' growth and competitive advantage looks blurred in SMEs of DCs, and the need for further research into their capabilities and capacities’ influence is called for (Issa et al., 2018; Li et al., 2018; Rassool & Dissanayake, 2019). A scoping review of the DT of SMEs in sub-Saharan Africa reveals quite a not-too-good situation (Achieng & Malatji, 2022). Their findings show economy-based, market-based and socio-technical contextual factors emerging as themes that impede DT of SMEs in the SSA region. “In the SSA context, SMEs face numerous regional constraints that create barriers in their operations, such as limited access to profitable and value-added markets” (Achieng & Malatji, 2022). Therefore, it is imperative to ascertain how the SMEs capabilities and capacities influence the DT factors, particularly in DCs. Fourth, there is currently no theoretically grounded and practice-oriented framework specific to the DT of SMEs (North et al., 2019). Hence, most SMEs in DCs tend to follow the DT path arbitrarily. The lack of clarity in understanding the relationships and influences among the drivers, processes, outcomes, capabilities and capacities leads to the need to appreciate DT conceptualisation (Morakanyane et al., 2017). Furthermore, conceptualisation involving multiple factors leading to framework development is scanty in the extant literature, and very few studies conceptualise DT of SMEs (Jöhnk et al., 2020; Van Veldhoven & Vanthienen, 2019; Verina & Titko, 2019). Moreover, DT is only partially covered by conventional frameworks on organisational change (Hanelt et al., 2021). University of Ghana http://ugspace.ug.edu.gh 8 The review of frameworks proposed for DT-related research shows that the most frequently used frameworks are the ones scientifically validated for IS research in general and not specific to DT (Subramanian et al., 2021). These frameworks include the Technology Acceptance Model (TAM) (Venkatesh & Bala, 2008), the Unified Theory of Acceptance and Use of Technology framework (UTAUT) (Negahban & Chung, 2014), and the Technology, Organisation, Environment Framework (TOE) (Subramanian et al., 2021). These are reviewed in Section 3.3.1. However, other frameworks exist that are specific to DT but are not scientifically validated (Nwaiwu, 2018). Most are practitioner-based frameworks and are unfamiliar with academic literature (Modiba et al., 2018; Subramanian et al., 2021). That notwithstanding, their reviews are helpful since DT resides in a practitioner domain and context. These frameworks have been reviewed in Section 3.3.2. The reviewed frameworks preclude DT maturity models, which assess the maturity levels and strategies of firms that have already digitally transformed, matured and moved into strategic dimensions (Bumann & Peter, 2019; Teichert, 2019). Interestingly, none of the frameworks (conventional IS or DT-specific frameworks) contemplates the multiplicity of DT factors (Modiba et al., 2018; Nwaiwu, 2018; Subramanian et al., 2021). Moreover, there is no evidence in the extant literature of an existing DT framework concerning DT drivers, processes, outcomes, capabilities and capacities (Jöhnk et al., 2020; Osmundsen et al., 2018; Van Veldhoven & Vanthienen, 2019; Verina & Titko, 2019). Therefore, a significant gap exists in the conceptualisation of DT regarding drivers, processes, outcomes, capabilities and capacities and leading to framework development for DT of SMEs in DCs. Such conceptualisation and framework are what this study seeks to achieve. University of Ghana http://ugspace.ug.edu.gh 9 Fifth, using theories as a guiding lens in IS research is significant and helps define constructs and variables for the research (Lim et al., 2009). DT Research is situated in IS and requires theories to help guide the research. Extant literature is skewed towards more conventional and popular IS theories, some of which are reviewed in Section 3.3.1. Tavakoli and Schlagwein (2016) express the view that conventional and traditional theories are reaching their limits in explaining new phenomena of IT-enabled work practices, including DT. Therefore, other new or less-used theories suited for IT-enabled phenomena are recommended (Tavakoli & Schlagwein, 2016). Adaptive Structuration Theory (AST) is an established and significant theory in IS that suits IT-enabled phenomena where the interaction of technology and organisational structures is critical (Pari et al., 2020; Tavella et al., 2021). Therefore, AST is suitable for DT research since DT also involves the interaction of technologies and organisations. Meanwhile, AST has been employed in several IS research in recent times, but very few relate to DT (e.g., Ko et al., 2021; Thapa et al., 2020). Despite the potential of AST, its scanty utilisation in DT, particularly for SMEs, calls for its application in this study. AST requires direct interaction of the technology and organisation structures that produce other new and emergent sources of structures, which further results in decision processes and outcomes (DeSanctis & Poole, 1994; Tavella et al., 2021). Meanwhile, DT involves precisely the same phenomenon where organisations interact with digital technologies through defined processes and result in outcomes, hence the suitability of AST for this study. The AST is reviewed in Section 3.4. University of Ghana http://ugspace.ug.edu.gh 10 Sixth, in terms of methodology, very few studies on DT use approaches such as the DSR method (Cruz & da Cruz, 2020; Majdalawieh & Khan, 2022) and Delphi methods, particularly the qualitative Delphi method (Cech & Tellioglu, 2019; Sahu et al., 2018). However, most DT studies use case study and survey methods and techniques with qualitative and quantitative research approaches (Garzoni et al., 2020; Kutzner et al., 2018; Priyono et al., 2020). That notwithstanding, more varying approaches and methods are recommended for DT research due to its dynamic and disruptive nature (Kutzner et al., 2018). Delphi methods, particularly qualitative approaches, are barely used in DT research (Savastano et al., 2019). Meanwhile, DT involves specialised knowledge, which can be unearthed through exploratory study with qualitative approaches using experts in DT. Therefore, utilising Delphi techniques with qualitative approaches is suitable for DT research. The Delphi method is discussed in Section 4.2.3. Seventh, existing research on how SMEs in DCs can successfully partake in DT is lacking in literature (Barann et al., 2019). Meanwhile, most research and practice-based investigations into DT usually focus on medium to large enterprises and developed countries (Bloomberg, 2018; European Commission, 2019; OECD, 2018; Verina & Titko, 2019). Therefore, DT research at the SME level of analysis and in the developing country context is called for and worth undertaking (Kumar & Kaur, 2019). University of Ghana http://ugspace.ug.edu.gh 11 In summary, this study’s literature review unearthed four issue gaps, one theory gap, one method gap and one context gap as follows: i. The lack of agreement on what constitutes the drivers, processes, and outcomes of DT. ii. The lack of studies on the relationships and influences among the drivers, processes, and outcomes of DT in SMEs. iii. The silence of studies on how the capabilities and capacities of SMEs influence DT. iv. The lack of a theoretically grounded and practice-oriented framework for DT of SMEs. v. The lack of evidence on the Adaptive Structuration Theory as a guiding lens theory for DT research. vi. The lack of studies that use the qualitative Delphi technique in DT research methodology. vii. The limitation in the literature on the DT research involving SMEs in DCs. Finally, this study acknowledges and focuses on the need for what constitutes DT drivers, processes and outcomes (first gap – issue based) and their relationships (second gap – issue based), and SMEs capabilities and capacities influence (third gap – issue based). These gaps form the basis of this study's purpose, and their conceptualisation helps achieve the need for framework development (fourth gap – issue based). The study draws on the guiding lens of the Adaptive Structuration Theory (fifth gap – theory-based) and uses the qualitative Delphi technique as the methodology (sixth gap – method based). The study is conducted in the context of SMEs in DCs’ (seventh gap – context-based) to conceptualise the DT drivers, processes, and outcomes with SMEs capabilities and capacities toward framework development. Therefore, this doctoral study's research purpose, objectives, and questions are based on the first three gaps. Still, the study eventually develops a framework that combines these three gaps. University of Ghana http://ugspace.ug.edu.gh 12 1.3 Research Purpose In light of the above research background and research problem, and to address the research gaps enumerated, the following research purpose is derived for this doctoral study: "To explore the drivers, processes and outcomes of DT and the inter-relationships among them, while considering the influence of the SMEs capabilities and capacities in DCs." Determining what constitutes the drivers, processes, and outcomes of DT and how they influence each other while considering the SMEs capabilities and capacities would help understand the concept of DT of SMEs in DCs. Furthermore, conceptualising these factors with framework development can increase the boundaries of knowledge and theorisation concerning the DT SMEs in DCs. 1.4 Research Objectives In relation to the research problem and purpose, the following research objectives are set: i. To determine the drivers, processes, and outcomes of the DT of SMEs in DCs. ii. To examine the influences among the drivers, processes, and outcomes in the DT of SMEs in DCs. iii. To understand the influence of SMEs capabilities and capacities on the drivers, processes, and outcomes of the DT in DCs. This first research objective responds to the lack of agreement on the drivers, processes, and outcomes of SMEs' DT in DCs, as explained in Chapter One, Section 1.3 (Liere-Netheler et al., 2018). It also addresses the need for periodic reviews of the drivers and other factors due to the dynamic nature of the DT phenomenon and organisations (Solis & Littleton, 2017). University of Ghana http://ugspace.ug.edu.gh 13 The second objective addresses the inadequate literature on the relationships among the drivers, the processes, and the outcomes, as explained in Chapter One, Section 1.3 (Liere-Netheler et al., 2018; Hrustek et al., 2019). It also addresses the need to understand the possible influences of DT drivers on processes, drivers on outcomes, processes on outcomes, and outcomes on drivers. Hrustek et al. (2019) and Li (2020) suggest that different drivers may result in unique processes and outcomes like business models. The third objective addresses the silence of current studies on how the capabilities and capacities of firms influence the DT drivers, processes, and outcomes, as explained in Chapter One, Section 1.3 (Hanelt et al., 2021; Li et al., 2018; Morakanyane et al., 2017; Savastano et al., 2019; Vial, 2019). It also addresses the need to examine the capabilities and capacities of SMEs that interplay in the DT of SMEs in DCs (Hausberg et al., 2018; Li et al., 2018; Nadeem et al., 2018; Solis & Littleton, 2017). 1.5 Research Questions In responding to the research purpose and objectives, the following research questions are asked: i. What are the drivers, processes, and outcomes of the DTs of SMEs in DCs? ii. How do the drivers, processes and outcomes influence one another in the DT of SMEs in DCs? iii. How do the SMEs capabilities and capacities influence the DT drivers, processes, and outcomes in DCs? University of Ghana http://ugspace.ug.edu.gh 14 The first question is addressed through the conceptualisations of the drivers, processes, and outcomes obtained from the Adaptive Structuration Theory (AST) and extant literature on the DT of SMEs in DCs (Giddens, 1984; Kane et al., 2017; Paavola et al., 2017). The conceptualisations are discussed, and the derived categories are shown in Chapter Three, Section 3.5. This second research question is addressed by examining the drivers, processes, and outcomes' inter-relationships and frameworks established to conceptualise the relationships and influences among the drivers, processes, and outcomes of the DT of SMEs in DCs. The frameworks are discussed and shown in Chapter Three, Section 3.5. This third research question draws on the 'capability and capacity framework' harnessed from extant literature (e.g., Ambrosini & Altintas, 2019; Helfat & Martin, 2015; Helfat & Winter, 2011) in combination with the driver, process, and outcomes framework to conceptualise the SMEs capabilities and capacities’ influence on DT in DCs. The frameworks are discussed and shown in Chapter Three, Section 3.5. All three research questions are addressed with the Qualitative Delphi method, identified as a gap in Chapter One, Section 1.3 (Cech & Tellioglu, 2019; Kutzner et al., 2018; Savastano et al., 2019). Data is collected from DT experts in six DCs and analysed using a data analysis process framework developed for the study and based on Bazeley (2009), Gioia et al. (2013) and Strauss (1987). The methodological research strategy, data collection and analysis are discussed in Chapter Four. University of Ghana http://ugspace.ug.edu.gh 15 1.6 Research Context The contextualisation of this study aligns with the principle that IS research, and practice must associate technology innovation with the context within which it is embedded (Avgerou, 2011). The principles are that (1) technology innovation should be considered in relation to socio- organisational change; (2) analysis should consider not only the local and organisational context but also the national and international context; and (3) analysis should consider both the technical and rational decisions and actions involved in the innovation processes, and the cultural, social and cognitive forces of such processes. With these principles, this section outlines and describes the various contexts within which this study is conducted. First, the geographical and developmental context of this study is DCs, also referred to as Developing Economies (DEs), which are nations whose economies have low gross national income (GNI) per-capita (Nielsen, 2011; Roztocki & Weistroffer, 2009; Serajuddin & Hamadeh, 2020). Gross national income (GNI) is defined as gross domestic product plus net receipts from abroad of compensation of employees, property income and net taxes less subsidies on production (OECD, 2021; World Bank, 2022). Meanwhile, GNI per capita is the gross national income divided by the midyear population (OECD, 2021, World Bank, 2022). However, no definition or classification is universally agreed upon for DCs (Abor & Quartey, 2010; Storey, 2016). ‘Developing’ describes a currently observed state or situation, not a changing or dynamic state or expected progress direction. Countries and territories are classified based on geographical regions and income levels by the World Bank and other international organisations (Roztocki & Weistroffer, 2009; World Bank, 2020). In terms of income levels, the classifications are low-income, lower middle-income, upper middle-income, and high-income economies. The income level categories are determined by University of Ghana http://ugspace.ug.edu.gh 16 the gross national income per capita of the countries calculated using the World Bank Atlas method (World Bank, 2020). As of 2022, low-income economies are defined as those with a GNI per capita of $1,085 or less; lower-middle-income economies are those with a GNI per capita between $1,086 and $4,255. Upper-middle-income economies are those with a GNI per capita between $4,256 and $13,205; high-income economies are those with a GNI per capita of $13,205 or more (World Bank, 2022). Meanwhile, the countries in all the categories except the high-income economies are considered developing economies or DCs (World Bank, 2020). Regarding geographical regions, the classifications are North America, Europe and Central Asia, East Asia and Pacific, South Asia, Latin America and the Caribbean, and Sub-Saharan Africa (World Bank, 2020). However, the DCs are found in all but the North American region (World Bank, 2020). The DCs can further be grouped according to economic growth or size of the capital market as Newly Industrialised Countries, Emerging Markets, Frontier Markets, and Least Developed Countries (LDC) (Roztocki & Weistroffer, 2009; Serajuddin & Hamadeh, 2020). The classifications of the countries selected for this study based on the geographical regions are Sub-Saharan Africa (Ghana, Nigeria, Kenya, South Africa), East Asia and Pacific (China), and South Asia (India). In terms of income, these countries belong to the lower middle income (Ghana, Nigeria, Kenya, India) and upper middle income (China, South Africa). DCs have low infrastructure development and low technological capacity (Nielsen 2011). DCs typically exhibit low living standards and have underdeveloped industrial and commercial foundations. In contrast are the developed countries, characterised by lofty standards of living, ongoing and self-sustaining economic growth, and a well-developed infrastructure (Roztocki University of Ghana http://ugspace.ug.edu.gh 17 & Weistroffer, 2009). DCs are less endowed and more vulnerable than developed countries regarding managerial and organisational capabilities and capacities (Serajuddin & Hamadeh, 2020). Hence relative to DT, firms in DCs experience more challenges, particularly SMEs. Second, the level of analysis context of the study is at the SME level or organisational level (meso level). However, the views are from individual DT experts’ level (micro level) whose perspectives are from different countries (macro level). That notwithstanding, the focus of the exploration of DT in this study is SMEs in DCs (meso level). SMEs are businesses or firms with total revenues, assets, or number of employees below a certain threshold (OECD, 2019). SMEs' revenues, assets, or employee thresholds vary for countries and industries. In some cases, the ownership structure, the number of employees, earnings, and industry type contribute to SMEs’ definitions. However, a standard or universal definition of SMEs does not exist (Abor & Quartey, 2010; Storey, 2016). Meanwhile, there are different definitions of SMEs for different jurisdictions across countries in the world. The different definitions are apparent because the dimension of “small” and “medium” for a firm are comparative to the size of the domestic economy and the type of industry (Kushner, 2010; Storey, 2016). For statistical purposes, SMEs are denoted as firms that employ a maximum of 249 persons, with further categorisation as micro (1 to 9), small (10 to 49), and medium (50-249) employee sizes (OECD, 2017). This breakdown offers the best comparative explanation for SMEs as different countries use different conventions. SMEs play critical roles in the economies of most countries, if not all. SMEs contribute to job creation and offer high employment levels, particularly in developing countries (Abor & Quartey, 2010; Wang, 2016). Notwithstanding SMEs being drivers of economic growth and University of Ghana http://ugspace.ug.edu.gh 18 constituting the most dynamic firms in emerging economies, SMEs face several obstacles which can impede their DT (Prange & Zhao, 2018). SMEs are characterised by limited access to finance and are exposed to high finance costs (Wang, 2016). Inadequate infrastructure, lower capabilities and capacities, and high competition are the typical characteristics of SMEs (Wang, 2016). These characteristics challenge SMEs and inhibit SMEs' digitalisation and DT attempts (Boneva, 2018; Ndiaye et al., 2018). Third, this study's theoretical context and perspective consider the guiding lens of AST. AST is used to study information technology interaction with groups or organisations (DeSanctis & Poole, 1994). This study’s context is the interaction of digital technologies with organisations or enterprises. The primary independent constructs are the digital technologies' structural features and spirit features, work tasks, external environment, internal system, new rules and resources, and outputs of technology-organisation interaction (DeSanctis & Poole, 1994). The structural features are particular types of capabilities, resources, attributes or rules presented by the system. They control precisely how users can collect, manipulate, and handle information. The spirit features are the overall intentions regarding goals and values fundamental to the structural features. Spirit represents the technology as it is reflected in the mind of the users. Regarding spirit features, there is more emphasis on the technology’s objectives and values than the physical features and appearance (DeSanctis & Poole, 1994). Therefore, AST delineates DT drivers and shows how they interact with the organisation through the appropriation of structure and structuration. Decision processes then occur, resulting in outcomes of quality and effectiveness of the digital technology and the consensus and commitment of personnel and organisation. AST is appropriate for DT because it University of Ghana http://ugspace.ug.edu.gh 19 highlights all drivers of DT from both technological and organisational perspectives while focusing on their interactions. The interactions reflect the DT processes, which bring about the transformation and finally result in the DT outcomes. Fourth, the philosophical context of this study is the critical realism (CR) philosophy. CR is a suitable research paradigm to unearth phenomenon that needs to be explored in information systems research (Bygstad et al., 2015). The main objective of using CR in research is to use the perception of empirical phenomena or events, both observed and experienced, to identify the mechanisms that give rise to the phenomena or events. This study concerns unearthing the DT drivers, processes and outcomes while exploring their interactions and the effects of SMEs capabilities and capacities. This aim calls for a research paradigm with an epistemological focus of unearthing a phenomenon’s generative mechanisms. Hence the use of CR is justified since DT drivers, processes, and outcomes are types of mechanisms of the DT phenomenon. Consequently, this study adopts the Critical Realism research paradigm. Fifth, the methodological context of this study is the use of the qualitative Delphi technique. The Delphi method is prevalent in IS research (Cech & Tellioglu, 2019; Hartl & Hess, 2017; Skinner et al., 2015; Strasser, 2017). Its use results from its robustness and reliability because it requires expert opinion through consensus without conferring (Brady, 2015; Fletcher & Marchildon, 2014; Fletcher & Marchildon, 2018; McPherson et al., 2018). The qualitative aspect is suitable for new and emerging phenomena like DT. Meanwhile, DT constitutes a specialised knowledge area where expert opinions are relevant, reliable, and valid. This DT research requires that experts be engaged to provide accurate insights about DT drivers, University of Ghana http://ugspace.ug.edu.gh 20 processes, and outcomes and how they relate and can be influenced. Therefore, the Delphi technique was very suitable for this study. 1.7 Research Significance The significance of this study is established in its contribution to knowledge and IS literature as it explores the drivers, processes and outcomes of DT and the relationships among them while considering the influence of the capabilities and capacities of SMEs in DCs. The significance of this study is considered in terms of research, practice and policy. In terms of research, the study utilises the AST to develop a conceptual framework that helps explore and unearth DT's drivers, processes, and outcomes. Beyond determining these factors, the study reveals significant relationships and shows how SMEs' capability and capacity influence them. Regarding the drivers of DT, their different dimensions and their influences on processes and outcomes are identified in this study that hitherto was virtually absent in the literature but significant for DT (Al Maamari & Bhuiyan, 2021; Lutfi et al., 2022). The study also delineates the stepwise and adaptable processes for DT in a manner that collectively has no precedence in literature (Priyono et al., 2020; Delgado, 2017). These processes lead to the dimensions of DT outcomes representing outcome types in extant literature (Bui, 2021; Chen et al., 2016; Lukonga, 2020; Mahmood et al., 2019). These factors and typologies of drivers, processes and outcomes and their relationships are explored with the study’s developed theoretical and practice-based DT framework. The framework contributes to research that seeks to understand the relationships and influences, as such studies lack in the literature (Liere-Netheler et al., 2018; Hrustek et al., 2019; Reis et al., University of Ghana http://ugspace.ug.edu.gh 21 2018). Beyond the relationships among the factors, the framework also helps identify the implying capabilities and capacities and how they influence the drivers, processes and outputs. Regarding practice, the study is significant in categorising and detailing the interplay of the typologies of drivers, processes, outcomes, capabilities, and capacities in DT. These typologies help entrepreneurs, managers, and employees appreciate and understand their DT endeavours. DT literature argues that “DT is not a light endeavour which organisations can pursue blindly and unprepared” (Delgado, 2017, p. 3). The significance of the theoretical and practice-based framework is therefore obviously important. Concerning policy, the study is significant in guiding stakeholders such as government, regulators, industry groups and other interest bodies to appreciate what drives or motivates DT. It also guides the processes needed to achieve DT and the anticipated outcomes of successful DT for SMEs (Handoko et al., 2019). Policymakers will also appreciate how managerial and organisational capabilities and capacities could influence SMEs' DT drivers, processes, and outcomes. Thus, this study's findings can help improve decision-making and DT policies for SMEs operating in DCs strategically. 1.8 Chapter Organisation This section presents an outline of the chapter organisation of the study. The study report is organised into nine (9) chapters. Chapter One introduces the study's background, research problem, purpose, objectives, questions, context, and significance. Chapter Two presents the literature review on DT research, highlighting the key concepts of DT, digital technologies in DT, DT drivers, processes, outcomes, SMEs capabilities and capacities, DT of SMEs in DCs, University of Ghana http://ugspace.ug.edu.gh 22 and a summary of research gaps of interest. Chapter Three discusses the study's theoretical foundations and research framework, considering explanations of theory, model, and theoretical and conceptual frameworks. Chapter Four presents the methodology involving the research strategy (philosophy, approach, design, sampling), data collection, analysis, validity, and reliability. The study's findings are presented in Chapter Five, clustered according to the objectives and the themes obtained from the analysis. Chapter Six discusses the study's findings relating to digital technologies, drivers, processes, outcomes, capabilities and capacities and their relationships and influences. Chapter Seven presents the development of the DT frameworks from the study's findings and discussions based on the theories, models, frameworks, and extant literature. Chapter Eight presents a post-study evaluation of the theoretical and practice-based framework developed by the study for DT. Chapter Nine presents the summary and conclusions of the study's main findings, contribution to knowledge, and recommendations for future research. University of Ghana http://ugspace.ug.edu.gh 23 CHAPTER TWO 2 REVIEW OF DIGITAL TRANSFORMATION LITERATURE 2.1 Chapter Overview This study reviewed the available and relevant literature to advance knowledge and uncover new research areas on DT. This chapter presents the review in nine sections. The first section sets the tone by showing the methodology for the review. The second section conceptualises the key concepts and terms in DT, while the third discusses DT's digital technology trends and types. The fourth, fifth and sixth sections present vital issues in advancing DT research as the DT drivers, DT processes and DT outcomes, respectively. The seventh section considers the SMEs capabilities and Capacities for DT, whereas the eighth section presents the DT of SMEs in DCs. The ninth section summarises the research gaps. 2.2 Literature Review Methodology This study's literature review followed a Systematic Literature Review (SLR) approach. SLR is a type of research that uses systematic methods to collect secondary data, critically appraise research and synthesise studies (Ham-Baloyi & Jordan, 2016). The main reason for using this approach is to provide a comprehensive summary of current studies relevant to DT conceptualisation (Levy & Ellis, 2006). SLR is considered suitable for research on digital entrepreneurship and DT (Pittaway & Cope, 2007). The SLR approach manages numerous research articles on the topic in focus over a period, and the basic principles provide acceptable transparency and replicability (Armitage & Keeble-Allen, 2008). University of Ghana http://ugspace.ug.edu.gh 24 The literature search was conducted using credible and relevant electronic databases as sources. The quest was performed in eight (8) databases: namely, ScienceDirect/Elsevier, Emerald, AIS Library, Sage, Springer, and Taylor and Francis, EBSCOHost and Willey Online. Some search was also done using Google Scholar; however, most articles retrieved also belonged to some of the journals abstracted in the listed databases. These databases may not list or abstract all the relevant journals that would manage DT articles. Nevertheless, they have multidisciplinary journals covering IS and social research that suit the DT concept. Most of these databases have top-ranked journals, useful for IS and multidisciplinary research globally, making the list of databases fair and adequate (Levy & Ellis, 2006). DT was the primary descriptor or search phrase used for all the searches. Other keywords included digitalisation, digital innovation, digital entrepreneurship, digital technologies, SMEs, and DCs. The searches were limited to research articles and anecdotal articles published between 2010 and 2020. The reference list and citations in some retrieved articles were also examined. This approach led to some relevant and seminal research articles, yet valuable beyond the specified search period. The selected articles were manually scrutinised and subjected to inclusion and exclusion criteria. Most of the articles included were peer-reviewed journal articles and book chapters; however, some anecdotal papers were accepted because DT is a practice-based phenomenon; hence, several papers are presented as anecdotes and typical viewpoints. Meanwhile, the thesis and dissertations were not accepted, together with anecdotes from irregular and non-institutional websites. The abstracts were read, and the articles were skimmed through to eliminate duplicates and ensure they focused on the DT-related search descriptors, not their mere mention. Efforts were made to ensure the selected papers focused on DT's critical University of Ghana http://ugspace.ug.edu.gh 25 issues concerning the drivers, processes, outcomes, and SMEs capabilities and capacities influence. Furthermore, papers on issues concerning DT, digital technologies, innovation, entrepreneurship, SMEs, and DCs were also selected. Both empirical and conceptual papers were considered relevant. Finally, 282 articles and papers were selected and subjected to classification based on drivers, processes, outcomes of DT, and the capabilities and capacities’ influence. They were also classified based on the research theories and methodologies used, the level of analysis, and the context. The review write-up was based on these classifications of themes, methodologies, theories, context, and level of analysis. Future research themes and perspectives for future research and those less researched were also noted and presented in evidence as gaps. 2.3 Conceptualising the Key Concepts in DT The DT concept has been frequently associated with other terms and concepts (Heavin & Power, 2020). Meanwhile, IS literature has widely used and diversely defined or explained these terms (Verhoef, 2021). The common factor in these concepts is digital technologies, and scholars often conceptualize the implications and processes of utilising digital technologies as digitisation, digitalisation, digital innovation, and DT (Frenzel et al., 2021). Indeed, these concepts are interconnected, but they are distinct at the conceptual level. This section conceptualises and explains these related concepts. University of Ghana http://ugspace.ug.edu.gh 26 2.3.1 Digitisation Legner et al. (2017, p. 301) describe digitisation as “the technical process of converting analogue signals into a digital form, and ultimately into binary digits.” Other definitions of digitisation also exist with varying approaches and understanding, as presented in Table 2.1. Table 2.1 Definitions of Digitisation Source(s) Definition and Concept for Digitisation Derived Understanding Legner et al. (2017, p. 301) “The technical process of converting analogue signals into a digital form, and ultimately into binary digits (bits).” Conversion of analogue data to digital. Explicit difference between digitisation and digitalisation Sandberg et al. (2020) Change in a firm’s organising logic by instilling new properties into product platforms Digitisation influences product architectures The final stage of digitisation is a platform- ecosystem Bloomberg (2018) Taking analogue information and encoding it into zeroes and ones so that computers can store, process, and transmit such information Conversion of analogue data to digital Brennen & Kreiss (2016) The material process of converting individual analogue streams of information into digital bits Conversion of analogue data to digital The definition of digitisation as a technical process that transfers analogue signals into digital signals (data conversion) is touted by several authors (Bloomberg, 2018; Brennen & Kreiss, 2016; Tilson et al., 2010). This definition implies the evolutionary processing of data, with the analogue form being a prerequisite for the final digital product evolving out of it. However, in the contemporary era, in most instances, there is no longer a need for an analogue version, as data or even contextualised information can be created independently and solely in digital form (Baskerville et al., 2020). For example, a text document processed on a computer does not need to be handwritten in advance. Therefore, digitisation can imply the fully digital creation of information and data with or without a physical or analogue counterpart. On the other hand, Sandberg et al. (2020. p. 130) introduce a platform dimension and describe digitisation as a "change in a firm’s organising logic by instilling new properties into product platforms." University of Ghana http://ugspace.ug.edu.gh 27 2.3.2 Digitalisation Digitalisation is the use and application of digital technologies in the contexts of individuals, organisations, or society (Frenzel et al., 2021). Legner et al. (2017) and Sandberg et al. (2020) further describe digitalisation as “the manifold socio-technical phenomena and processes of adopting and using digital technologies in broader individual, organisational, and societal contexts” (Legner et al. (2017, p. 301). Other definitions of digitalisation are presented here in Table 2.2. Table 2.2 Definitions of Digitalisation Literature Source(s) Definition and Concept of Digitalisation Derived understanding Legner et al. (2017) “The manifold socio-technical phenomena and processes of adopting and using digital technologies in broader individual, organisational, and societal contexts” Socio-technical nature (human, organisation and material related) Tilson et al. (2010, p 2) “A socio-technical process of applying digitising techniques to broader social and institutional contexts that render digital technologies infrastructural” Socio-technical process and not an event. Digital technology is key Corrocher and Ordanini (2002) “The emergence of technological platforms of information and communications technology determined significant and unprecedented changes in many aspects of our social and economic life” Mentions a platform dimension, restricting the application Frenzel et al. (2021) “The use and application of digital technologies in the contexts of individuals, organisations, or society at large” The use of technologies emphasised Brennen and Kreiss (2016) The way in which many domains of social life are restructured around digital communication and media infrastructures Digital changing social Most of the definitions of digitalisation reflect its socio-technical attributes. Moreover, emphasis is placed on the involvement and use of digital technologies (Frenzel et al., 2021; Tilson et al., 2010). Brennen & Kreiss (2016) describes digitalisation as how domains of social life are restructured around digital communication. Besides not showing outcomes, this definition does not indicate digital technologies but digital data. Digitisation is considered a technical requirement for digitalisation, where digitalisation is a form of digital technology-enabled social change (Mihailescu & Mihailescu, 2018; Tilson et University of Ghana http://ugspace.ug.edu.gh 28 al., 2010). However, Corrocher and Ordanini (2002) also introduce a platform dimension, restricting its application and focus to platforms that change social and economic life. Meanwhile, none of the definitions implies a fundamental change to the organisation or society, distinguishing it from DT (Alt, 2018). 2.3.3 Digital Innovation The dimension of digitalisation that results in the creation of new businesses is described as digital innovation (Frenzel et al., 2021). Digital innovation is “the application of digital technologies, platforms, and infrastructure to propose a new way of offering service to a customer to enhance customer value proposition” (Ciriello et al.,