The Digital Divide in SMEs'Digital Transformation: Internal Mechanisms and Bridging Pathways

Digital transformation of enterprises is a key aspect of the development of the digital economy and an important pathway to achieving high-quality economic growth.Compared to large enterprises,small and medium-sized enterprises (SMEs) face more pronounced “digital divide” issues in their digital transformation process due to weak infrastructure,insufficient technical capabilities,financing difficulties,and a lack of talent.Current academic research primarily focuses on reducing costs,improving asset utilization efficiency,and enhancing innovation capabilities,with more emphasis on the “digital dividend”,while relatively less attention has been paid to the internal impact mechanisms of SMEs'digital transformation.This paper focuses on SMEs,selecting panel data from listed Chinese “specialized,refined,distinctive and innovative”(SRDI) SMEs from 2012 to 2022,and explores the impact mechanisms of digital transformation on business performance.The findings indicate that:(1) There is a significant divide effect of enterprise digital transformation on the business performance of SMEs;(2) Initial transformation phases require heavy investment,increasing operational costs while boosting innovation expenditure,thereby pressuring short-term performance but ultimately enhancing innovation output and indirectly improving long-term performance to bridge the divide;(3) The digital divide effect is smallest for “SRDI Little Giant” enterprises,followed by general “SRDI” SMEs,while the divide effect is largest for innovative SMEs;(4) The digital transformation of SMEs is still in its early stages,with a greater emphasis on visible investments in digital strategies and technology applications during the process.Notably,service and wholesale SMEs exhibit a more pronounced digital divide effect on operational performance compared to R＆D and manufacturing SMEs.The research conclusions provide empirical evidence for China to promote the digital transformation of SMEs,bridge the “digital divide”,and enhance high-quality economic development.