The Core Dilemma and the Path of Enterprise Digital Transformation
Research Article
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The Core Dilemma and the Path of Enterprise Digital Transformation

Jia Liu 1*
1 Guangzhou Experimental Foreign Language School
*Corresponding author: Jenny-LiuJia@outlook.com
Published on 16 September 2025
Journal Cover
AEMPS Vol.216
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-359-8
ISBN (Online): 978-1-80590-360-4
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Abstract

In today's new trend of digital economy, digital transformation of enterprises is necessary in order to cope with the changes in the external sales environment as well as to facilitate the sustainable development of enterprises. With machine intelligence, connected devices, and large-scale data analytics as core divers，the digital economy has become a new engine for economic growth in all countries, systematically transforming business models, operational processes, organizational structures, information security and customer experience to improve efficiency, innovate business models and enhance competitiveness. With reference to studies on Small and Medium Enterprises (SMEs) digital transformation across domestic and foreign research，this paper systematically analyzes the core dilemmas faced by enterprises (especially SMEs) in digital transformation, including insufficient technological capabilities, organizational execution barriers, and lack of capital. Through case comparisons and theoretical integration, it proposes a layered path to crack the problem, implementing the transformation in phases, cooperating and sharing resources among enterprises, and relying on policy and financial support, and so on. This study provides systematic references and solutions for enterprises' transformation practices in the age of digital economy, aiming to promote SMEs to accelerate the pace of digital transformation.

Keywords:

dilemma, digital transformation, small and medium enterprises

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Liu,J. (2025). The Core Dilemma and the Path of Enterprise Digital Transformation. Advances in Economics, Management and Political Sciences,216,50-56.

References

[1]. Vial, G. (2019) Understanding digital transformation: a review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144.

[2]. Rupeika-Apoga, R. and Petrovska, K. (2022) Barriers to sustainable digital transformation in Micro-, Small-, and Medium-Sized Enterprises. Sustainability, 14(20), 13558.

[3]. Wolf, M., Semm, A. and Erfurth, C. (2018) Digital Transformation in Companies - Challenges and Success Factors. In: Hodoň, M., Eichler, G., Erfurth, C. and Fahrnberger, G. (eds) Innovations for Community Services. I4CS 2018. Communications in Computer and Information Science, vol 863, 101-114.

[4]. Ikegami, H. and Iijima, J. (2020) Unwrapping Efforts and Difficulties of Enterprises for Digital Transformation. In: Agrifoglio, R., Lamboglia, R., Mancini, D. and Ricciardi, F. (eds) Digital Business Transformation. Lecture Notes in Information Systems and Organisation, vol 38, 211-225.

[5]. Boneva, M. (2018) Challenges related to the digital transformation of business companies. Innovation Management, Entrepreneurship and Sustainability (IMES 2018), 101-114.

[6]. Hernández-García, Á., Cuenca-Enrique, C., Jarabo-Valdivieso, P. and Chaparro-Peláez, J. (2023) Identifying the Critical Success Factors of the Digital Transformation. In: García Márquez, F.P., Segovia Ramírez, I., Bernalte Sánchez, P.J. and Muñoz del Río, A. (eds) IoT and Data Science in Engineering Management. CIO 2022. Lecture Notes on Data Engineering and Communications Technologies, vol 160, 189-204.

[7]. Dong, X. and Ren, W. (2025) Study on the Dilemma and Path of Digital Transformation of Small and Medium-sized Enterprises in the Age of Digital Economy. Times Economy and Trade, 22(7), 108-110.

[8]. Chen, Y.Y. (2025) Status quo, dilemma and strategy of digital transformation in small and medium-sized manufacturing enterprises. China Economic and Trade Guide, (4), 136-138.

[9]. Zhang, X.D., Yu, H., Yang, C. and Wen, Y. (2024) Background, Dilemma and Path of Digital Transformation of Small and Medium-sized Enterprises. Modern Business, (22), 140-143.

[10]. Li, L., Su, F., Zhang, W. and Mao, J. (2017) Digital transformation by SME entrepreneurs: a capability perspective. Information Systems Journal, 28(6), 1129-1157.

[11]. Wu, X.-J. (2025) Exploration of digital transformation path of small and medium-sized manufacturing enterprises. Digital Transformation, 2(5), 36-43.

[12]. Bian, P. and Yu, H.D. (2025) The "triple dilemma" of enterprise digital transformation and financial response. New Finance, (5), 62-70.

[13]. Warner, K.S. and Wäger, M. (2018) Building dynamic capabilities for digital transformation: an ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349.

References

[1]. Vial, G. (2019) Understanding digital transformation: a review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144.

[2]. Rupeika-Apoga, R. and Petrovska, K. (2022) Barriers to sustainable digital transformation in Micro-, Small-, and Medium-Sized Enterprises. Sustainability, 14(20), 13558.

[3]. Wolf, M., Semm, A. and Erfurth, C. (2018) Digital Transformation in Companies - Challenges and Success Factors. In: Hodoň, M., Eichler, G., Erfurth, C. and Fahrnberger, G. (eds) Innovations for Community Services. I4CS 2018. Communications in Computer and Information Science, vol 863, 101-114.

[4]. Ikegami, H. and Iijima, J. (2020) Unwrapping Efforts and Difficulties of Enterprises for Digital Transformation. In: Agrifoglio, R., Lamboglia, R., Mancini, D. and Ricciardi, F. (eds) Digital Business Transformation. Lecture Notes in Information Systems and Organisation, vol 38, 211-225.

[5]. Boneva, M. (2018) Challenges related to the digital transformation of business companies. Innovation Management, Entrepreneurship and Sustainability (IMES 2018), 101-114.

[6]. Hernández-García, Á., Cuenca-Enrique, C., Jarabo-Valdivieso, P. and Chaparro-Peláez, J. (2023) Identifying the Critical Success Factors of the Digital Transformation. In: García Márquez, F.P., Segovia Ramírez, I., Bernalte Sánchez, P.J. and Muñoz del Río, A. (eds) IoT and Data Science in Engineering Management. CIO 2022. Lecture Notes on Data Engineering and Communications Technologies, vol 160, 189-204.

[7]. Dong, X. and Ren, W. (2025) Study on the Dilemma and Path of Digital Transformation of Small and Medium-sized Enterprises in the Age of Digital Economy. Times Economy and Trade, 22(7), 108-110.

[8]. Chen, Y.Y. (2025) Status quo, dilemma and strategy of digital transformation in small and medium-sized manufacturing enterprises. China Economic and Trade Guide, (4), 136-138.

[9]. Zhang, X.D., Yu, H., Yang, C. and Wen, Y. (2024) Background, Dilemma and Path of Digital Transformation of Small and Medium-sized Enterprises. Modern Business, (22), 140-143.

[10]. Li, L., Su, F., Zhang, W. and Mao, J. (2017) Digital transformation by SME entrepreneurs: a capability perspective. Information Systems Journal, 28(6), 1129-1157.

[11]. Wu, X.-J. (2025) Exploration of digital transformation path of small and medium-sized manufacturing enterprises. Digital Transformation, 2(5), 36-43.

[12]. Bian, P. and Yu, H.D. (2025) The "triple dilemma" of enterprise digital transformation and financial response. New Finance, (5), 62-70.

[13]. Warner, K.S. and Wäger, M. (2018) Building dynamic capabilities for digital transformation: an ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349.

Cite this article

Liu,J. (2025). The Core Dilemma and the Path of Enterprise Digital Transformation. Advances in Economics, Management and Political Sciences,216,50-56.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Financial Framework's Role in Economics and Management of Human-Centered Development

ISBN: 978-1-80590-359-8(Print) / 978-1-80590-360-4(Online)
Editor: Lukáš Vartiak, Habil. Florian Marcel Nuţă
Conference website: https://2025.icftba.org/Galati.html
Conference date: 17 October 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.216
ISSN: 2754-1169(Print) / 2754-1177(Online)

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