MANAGEMENT OF SMALL AND MEDIUM BUSINESS AND THE EVOLUTION OF ITS APPROACHES IN THE CONDITIONS OF DIGITIZATION
Abstract
The article examines the features of small and medium-sized business management in the context of digital transformation and presents its basic components, including high-quality personnel management, human capital; systematicity, flexibility, adaptability, rapid response to changes and “smart” management of limited resources; qualified financial management. The hypothesis is put forward that cloud technologies have every chance of improving the quality of business teamwork by making communication faster. In the context of virtualization and digitalization of business processes, the issue of effective use of cloud technologies, CRM systems, augmented and virtual reality tools, and AI in synergy for the purpose of fast and understandable content generation for the consumer is acute. In addition, digital transformation has led to the emergence of a number of management positions such as digital transformation manager, IT infrastructure and e-strategy director, digital marketing manager, business ecosystem department manager, development, support and innovation manager, and digital product development manager. The authors argue that digital transformation and sustainable development set a trend for small and medium-sized businesses to use an innovative digital development model, through the application of digital technologies and a focus on business process automation to increase efficiency. Some components of small and medium-sized business development models under martial law are analyzed. Itʼs proven that digital tools allow you to expand analytics in terms of obtaining high-quality predictive conclusions from sales, optimizing inventories, and accurate understanding of consumer behavior and preferences. Itʼs argued that the orientation of business towards innovation and environmental friendliness in the course of its functioning requires management to constantly improve and deepen leadership and managerial competencies. The authors emphasize that the key measures and tools for developing a new quality of digital process management in small and medium-sized businesses include: cloud services and digital platforms for forecasting, planning and modeling of activities; the spread of work with AI in order to automate activities, quality of work in the virtual workplace; digitization of logistics processes.
References
. Sosna M., Trevinyo-Rodriguez R. N., Velamuri S. R. Business model innovation through trial-and-error learning: The naturhouse case. Long Range Planning. 2010. Vol. 43, Iss. 2–3. pp. 383–407. DOI: https://doi.org/10.1016/j.lrp.2010.02.003.
Loon M., Otaye-Ebede L., Stewart J., Ahlstrom D. Business model innovation in traversing developed and emerging economies: An integrated systematic literature review. Technovation. 2026. Vol. 149. Art. 103348. DOI: https://doi.org/10.1016/j.technovation.2025.103348.
Vasquez-Vasquez L. M., Alvarado-Caceres E. J., Fernandez-Bedoya V. H. Artificial intelligence for business decision-making in Latin America: A systematic review of evidence, contributing countries, and key insights. Administrative Sciences. 2026. Vol. 16, No. 3. Art. 121. DOI: https://doi.org/10.3390/admsci16030121.
Wang L., Jiang Z., Qu G. Digital business model innovation in complex environments: A knowledge system perspective. Systems. 2025. Vol. 13, No. 5. Art. 379. DOI: https://doi.org/10.3390/systems13050379.
Purnomo A., Afia N., Prasetyo Y. T., Rosyidah E., Persada S. F., Maulana F. I., Meiryani M. Business model on M-business: A systematic review. Procedia Computer Science. 2022. Vol. 215. pp. 955–962. DOI: https://doi.org/10.1016/j.procs.2022.12.098.
Li F. The digital transformation of business models in the creative industries: A holistic framework and emerging trends. Technovation. 2020. Vol. 92–93. Art. 102012. DOI: https://doi.org/10.1016/j.technovation.2017.12.004.
Teece D. J. Business models, business strategy and innovation. Long Range Planning. 2010. Vol. 43, Iss. 2–3. pp. 172–194. DOI: https://doi.org/10.1016/j.lrp.2009.07.003.
Biswas S., Biswas B., Mitra K. A novel group decision making model to compare online shopping platforms. Spectrum of Decision Making and Applications. 2025. Vol. 2, Iss. 1. pp. 1–27. DOI: https://doi.org/10.31181/sdmap2120259.
Chesbrough H. Business model innovation: Opportunities and barriers. Long Range Planning. 2010. Vol. 43, Iss. 2–3. pp. 354–363. DOI: https://doi.org/10.1016/j.lrp.2009.07.010.
Michalik A., Besenfelder Ch., Henke M. Servitization of small and medium-sized manufacturing enterprises: Facing barriers through the dortmund management model. IFAC-PapersOnLine. 2019. Vol. 52, Iss. 13. pp. 2326–2331. DOI: https://doi.org/10.1016/j.ifacol.2019.11.553.
Kraus N., Kraus K., Ishchenko I. The role of social capital for the inclusive development of veterans’ and womenʼs businesses. Інтелект ХХІ століття. 2025. Вип. 2. С. 81–87. DOI: https://doi.org/10.32782/2415-8801/2025-2.13.
Kraus K., Kraus N., Ishchenko I. Inclusive entrepreneurship as a social model of economic recovery and sustainable growth of the Ukrainian economy. Modeling the Development of the Economic Systems. 2026. Vol. 1. pp. 74–79. DOI: https://doi.org/10.31891/mdes/2026-19-7.
Millers M., Gaile-Sarkane E. Management practice in small and medium-sized enterprises: Problems and solutions from the perspective of open innovation. Journal of Open Innovation: Technology, Market, and Complexity. 2021. Vol. 7, Iss. 4. Art. 214. DOI: https://doi.org/10.3390/joitmc7040214.
McGrath R. G. Business models: A discovery driven approach. Long Range Planning. 2010. Vol. 43, Iss. 2–3. pp. 247–261. DOI: https://doi.org/10.1016/j.lrp.2009.07.005.
Andure M., Khule Sh., Lohakane A., Damodar P., Chaugule B. Small-medium business enterprise management application. International Journal of Management and Humanities. 2025. Vol. 11, Iss. 9. pp. 1–5. DOI: https://doi.org/10.35940/ijmh.G1796.11080425.
Zare L., Ali M. B., Rauch E., Matt D. T. Navigating challenges of small and medium-sized enterprises in the Era of Industry 5.0. Results in Engineering. 2025. Vol. 27. Art. 106457. DOI: https://doi.org/10.1016/j.rineng.2025.106457.
Sosna M., Trevinyo-Rodriguez R. N., Velamuri S. R. (2010) Business model innovation through trial-and-error learning: The naturhouse case. Long Range Planning, vol. 43, Iss. 2–3, pp. 383–407. DOI: https://doi.org/10.1016/j.lrp.2010.02.003.
Loon M., Otaye-Ebede L., Stewart J., Ahlstrom D. (2026) Business model innovation in traversing developed and emerging economies: An integrated systematic literature review. Technovation, vol. 149, Art. 103348. DOI: https://doi.org/10.1016/j.technovation.2025.103348.
Vasquez-Vasquez L. M., Alvarado-Caceres E. J., Fernandez-Bedoya V. H. (2026) Artificial intelligence for business decision-making in Latin America: A systematic review of evidence, contributing countries, and key insights. Administrative Sciences, vol. 16, no. 3, Art. 121. DOI: https://doi.org/10.3390/admsci16030121.
Wang L., Jiang Z., Qu G. (2025) Digital business model innovation in complex environments: A knowledge system perspective. Systems, vol. 13, no. 5, Art. 379. DOI: https://doi.org/10.3390/systems13050379.
Purnomo A., Afia N., Prasetyo Y. T., Rosyidah E., Persada S. F., Maulana F. I., Meiryani M. (2022) Business model on M-business: A systematic review. Procedia Computer Science, vol. 215, pp. 955–962. DOI: https://doi.org/10.1016/j.procs.2022.12.098.
Li F. (2020) The digital transformation of business models in the creative industries: A holistic framework and emerging trends. Technovation, vol. 92–93, Art. 102012. DOI: https://doi.org/10.1016/j.technovation.2017.12.004.
Teece D. J. (2010) Business models, business strategy and innovation. Long Range Planning, vol. 43, Iss. 2–3, pp. 172–194. DOI: https://doi.org/10.1016/j.lrp.2009.07.003.
Biswas S., Biswas B., Mitra K. (2025) A novel group decision making model to compare online shopping platforms. Spectrum of Decision Making and Applications, vol. 2, Iss. 1, pp. 1–27. DOI: https://doi.org/10.31181/sdmap2120259.
Chesbrough H. (2010) Business model innovation: Opportunities and barriers. Long Range Planning, vol. 43, Iss. 2–3, pp. 354–363. DOI: https://doi.org/10.1016/j.lrp.2009.07.010.
Michalik A., Besenfelder Ch., Henke M. (2019) Servitization of small and medium-sized manufacturing enterprises: Facing barriers through the dortmund management model. IFAC-PapersOnLine, vol. 52, Iss. 13, pp. 2326–2331. DOI: https://doi.org/10.1016/j.ifacol.2019.11.553.
Kraus N., Kraus K., Ishchenko I. (2025) The role of social capital for the inclusive development of veterans’ and womenʼs businesses. Інтелект ХХІ століття, Вип. 2, С. 81–87. DOI: https://doi.org/10.32782/2415-8801/2025-2.13.
Kraus K., Kraus N., Ishchenko I. (2026) Inclusive entrepreneurship as a social model of economic recovery and sustainable growth of the Ukrainian economy. Modeling the Development of the Economic Systems, vol. 1, pp. 74–79. DOI: https://doi.org/10.31891/mdes/2026-19-7.
Millers M., Gaile-Sarkane E. (2021) Management practice in small and medium-sized enterprises: Problems and solutions from the perspective of open innovation. Journal of Open Innovation: Technology, Market, and Complexity, vol. 7, Iss. 4, Art. 214. DOI: https://doi.org/10.3390/joitmc7040214.
McGrath R. G. (2010) Business models: A discovery driven approach. Long Range Planning, vol. 43, Iss. 2–3, pp. 247–261. DOI: https://doi.org/10.1016/j.lrp.2009.07.005.
Andure M., Khule Sh., Lohakane A., Damodar P., Chaugule B. (2025) Small-medium business enterprise management application. International Journal of Management and Humanities, vol. 11, Iss. 9, pp. 1–5. DOI: https://doi.org/10.35940/ijmh.G1796.11080425.
Zare L., Ali M. B., Rauch E., Matt D. T. (2025) Navigating challenges of small and medium-sized enterprises in the Era of Industry 5.0. Results in Engineering, vol. 27, Art. 106457. DOI: https://doi.org/10.1016/j.rineng.2025.106457.
