Digital transformation as a double-edged sword: boosting sales while increasing pressure on skills
DOI: https://doi.org/10.3846/btp.2026.26803Abstract
While the adoption of digital technology in companies has many benefits, it may also bring several challenges. Potential pressure on new skills is one of them, and it can be especially evident for SMEs. The main aim of the paper is to examine the potential consequences of digital transformation on SMEs’ sales and the availability of skills. The analysis is based on the firms’ microdata from the Flash Eurobarometer 537 (2023) questionnaire survey. The survey was conducted on more than 15000 respondent firms from 27 EU and 8 non-EU countries. The research uses a synergistic approach combining logistic regression and propensity score matching to identify the potential effects of digital technology adoption on future skill shortages and turnover. The results show that digital technology cannot close the skills gap in SMEs. Moreover, it can even further amplify the problem because it requires hiring employees with new skill sets complementary to digital technology. However, adopting digital technology can drive significant sales growth. The study presents new findings that allow us to propose recommendations for addressing skill shortages in SMEs in a rapidly changing business environment.
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digital technology, digital transformation, skills shortage, sales increase, SMEsHow to Cite
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Copyright (c) 2026 The Author(s). Published by Vilnius Gediminas Technical University.
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