Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEs

Abstract With the advent of digitalization, the economy of the world is quickly changing itself and Indian Small and Medium Enterprises (SMEs) are the front runners. This study sheds light on how digital transformation is crucial to support the growth, competitiveness, and sustainability in the pres...

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Main Authors: Sumit Gupta, Deepika Joshi, Sandeep Jagtap, Hana Trollman, Virendra Kumar Verma
Format: Article
Language:English
Published: Springer 2025-07-01
Series:Discover Food
Subjects:
Online Access:https://doi.org/10.1007/s44187-025-00510-7
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author Sumit Gupta
Deepika Joshi
Sandeep Jagtap
Hana Trollman
Virendra Kumar Verma
author_facet Sumit Gupta
Deepika Joshi
Sandeep Jagtap
Hana Trollman
Virendra Kumar Verma
author_sort Sumit Gupta
collection DOAJ
description Abstract With the advent of digitalization, the economy of the world is quickly changing itself and Indian Small and Medium Enterprises (SMEs) are the front runners. This study sheds light on how digital transformation is crucial to support the growth, competitiveness, and sustainability in the present business environment, and how digital transformation is important to the SMEs in India. To encourage SMEs to take up digital technologies, the Government of India has been creating an environment that encourages such moves by launching several initiatives including Digital India, Make in India and Startup India. This paper studies the role of stakeholder involvement in digital transformation in Indian food SMEs. Structural Equation Modeling (SEM) is used on survey responses from 103 food SMEs using the Statistical Package for the Social Sciences (SPSS). From the findings, there is a close relationship between stakeholder involvement and technological advancement (β = 0.595, p < 0.001) and organizational and political factors (β = 0.709, p < 0.001) as viewed by leadership, which reflects multidimensional factors leading to digital adoption. However, stakeholder involvement does not have any significant effect on financial factors (β = 0.018, p = 0.87), financial constraints being a major barrier to transformation. Moreover, although technological advancement results in a positive effect towards digital transformation (β = 0.694, p < 0.001), organizational and financial challenges act as stumbling blocks altogether. In the case of managers, this study indicates proactive involvement of stakeholders, investment in employees upskilling and alignment of organizational goals with digital initiatives for the support of technology adoption. This information assists decision makers in estimating government incentives and public private partnerships to overcome financial constraints. Digital transformation for food sector SMEs depends on a coordinated support of stakeholders, policy and technological readiness as preconditions for long term competitiveness.
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spelling doaj-art-73a9d4f0588a4f65b2a7bebb4887d4b52025-08-20T03:38:13ZengSpringerDiscover Food2731-42862025-07-015112010.1007/s44187-025-00510-7Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEsSumit Gupta0Deepika Joshi1Sandeep Jagtap2Hana Trollman3Virendra Kumar Verma4Department of Mechanical Engineering, Amity School of Engineering and Technology, Amity University Uttar PradeshOperations and Supply Chain Management Department, St. Joseph’s Institute of ManagementSustainable Manufacturing Systems Centre, School of Aerospace, Transport & Manufacturing, Cranfield UniversityCentre for Sustainable Organisations, School of Business, University of LeicesterSymbiosis Institute of Business Management, Symbiosis International (Deemed University)Abstract With the advent of digitalization, the economy of the world is quickly changing itself and Indian Small and Medium Enterprises (SMEs) are the front runners. This study sheds light on how digital transformation is crucial to support the growth, competitiveness, and sustainability in the present business environment, and how digital transformation is important to the SMEs in India. To encourage SMEs to take up digital technologies, the Government of India has been creating an environment that encourages such moves by launching several initiatives including Digital India, Make in India and Startup India. This paper studies the role of stakeholder involvement in digital transformation in Indian food SMEs. Structural Equation Modeling (SEM) is used on survey responses from 103 food SMEs using the Statistical Package for the Social Sciences (SPSS). From the findings, there is a close relationship between stakeholder involvement and technological advancement (β = 0.595, p < 0.001) and organizational and political factors (β = 0.709, p < 0.001) as viewed by leadership, which reflects multidimensional factors leading to digital adoption. However, stakeholder involvement does not have any significant effect on financial factors (β = 0.018, p = 0.87), financial constraints being a major barrier to transformation. Moreover, although technological advancement results in a positive effect towards digital transformation (β = 0.694, p < 0.001), organizational and financial challenges act as stumbling blocks altogether. In the case of managers, this study indicates proactive involvement of stakeholders, investment in employees upskilling and alignment of organizational goals with digital initiatives for the support of technology adoption. This information assists decision makers in estimating government incentives and public private partnerships to overcome financial constraints. Digital transformation for food sector SMEs depends on a coordinated support of stakeholders, policy and technological readiness as preconditions for long term competitiveness.https://doi.org/10.1007/s44187-025-00510-7Stakeholder’s involvementDigital transformationFood SMEsSEM
spellingShingle Sumit Gupta
Deepika Joshi
Sandeep Jagtap
Hana Trollman
Virendra Kumar Verma
Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEs
Discover Food
Stakeholder’s involvement
Digital transformation
Food SMEs
SEM
title Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEs
title_full Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEs
title_fullStr Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEs
title_full_unstemmed Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEs
title_short Unveiling the role of stakeholder involvement for digital transformation of Indian food SMEs
title_sort unveiling the role of stakeholder involvement for digital transformation of indian food smes
topic Stakeholder’s involvement
Digital transformation
Food SMEs
SEM
url https://doi.org/10.1007/s44187-025-00510-7
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