Mechanisms and Pathways of SMEs’ Digital Transformation: A Government–Technology–Industry Synergy Perspective

Abstract

Building on a review of the literature on SME digital transformation, this paper introduces a Government–Technology Industry–Traditional Industry (GTI) collaboration framework to reveal the coupling mechanisms between institutional supply, platform enablement and the reconfiguration of firm capabilities. It develops a point–line–plane evolutionary pathway for SME digital upgrading and validates it through the cases of Alibaba’s Rhino Smart Manufacturing and Haier’s COSMOPlat. The findings show that technology democratization and institutional inclusiveness are key drivers for easing resource constraints, enhancing SMEs’ connectivity and enabling their participation in digital trade. The study further highlights the need for a policy shift from merely distributing subsidies to building collaborative ecosystems, providing actionable implications for governments, platform providers and SMEs seeking to promote high-quality, digitally enabled business and trade development.