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The Double-Edged Sword: the Impact of Covid-19 on Digital Transformation of Chinese SMEs

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DOI: 10.23977/jsoce.2022.040112 | Downloads: 15 | Views: 941

Author(s)

Zhuoying You 1

Affiliation(s)

1 Business School, University of Southampton, Southampton, SO17 1BJ, United Kingdom

Corresponding Author

Zhuoying You

ABSTRACT

The outbreak of Covid-19 in December 2019 in China brought a huge shock for the digital transformation of Chinese Small and Medium Enterprises (SMEs). The different impacts of Covid-19 on digital transformation are distinguished, being a result of different periods. It was found that Covid-19 had immediately brought about negative impact on supply chain of the digital transformation, including the disruption of cash flow, dilemma of logistics and low demand. Covid-19 also emphasized the significance of digital technologies and exerted the new mode of value chain, enabling digital transformation on a stable path in post Covid-19. This paper argues that Covid-19 likes a double-edged sword to affect digital transformation of SMEs and provides policy recommendations to promote digital development of Chinese SMEs.

KEYWORDS

Covid-19, Digital transformation, Small and medium enterprises (SMEs), Supply chain, Value chain

CITE THIS PAPER

Zhuoying You, The Double-Edged Sword: the Impact of Covid-19 on Digital Transformation of Chinese SMEs. Journal of Sociology and Ethnology (2022) Vol. 4: 56-59. DOI: http://dx.doi.org/10.23977/jsoce.2022.040112.

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