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Digitalization in small service firms: a strategic marketing perspective

Year: 2026
Type: article
Abstract: Small businesses are the backbone of economies, but often struggle to strategically implement digitalization and achieve long-term benefits. With many adopting a predominantly tactical approach, the extant literature offers limited strategic insights to support small firms. This paper examines digitalization from a strategic marketing perspective, focusing on environmental, organizational, and interorganizational factors to deliver sustainable outcomes. A qualitative study was conducted transculturally across two contrasting contexts: Brazil and the UK. Building on Marketing Systems Theory, the study contributes by offering a holistic view and demonstrating that marketing operates within a network of interconnected actors embedded in broader institutional environments. The findings reveal that external factors, while important, can function as either opportunities or threats, while internal mindsets emerge as the critical differentiator, highlighting the pivotal role of leadership in driving change. The study also shows how digitalization unfolds as an iterative and path-dependent process shaped by firm capabilities and context. This paper advances small business literature and offers managerial guidelines for making strategic decisions when implementing digitalization.
Language: English
Open Access status: hybrid
OpenAlex ID: W7142259863
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