Analysis of Portugal´s macroenvironment in the view of digital transformation of smes using the peste framework - exploration of technological factors

Abstract

The digital transformation has revolutionized entire sectors in recent years. Yet, SMEs struggle to successfully implement such profound organizational transformations, endangering their competitiveness in the long term. Scholars study internal, company-related factors almost exclusively, whereas external factors are sparsely considered. Therefore, this thesis applies the PESTE framework to investigate external factors affecting the digital transformation of Portuguese SMEs. The following section explores technological factors (knowledge transfer and digital infrastructure and connectivity) in Portugal, analyzing the external environment on SMEs' digital transformation. Based on these findings, recommendations were developed, including interdisciplinary data collection processes, innovation hubs, tailored training, and trust seal