Analysis of Key Factors Affecting the Digital Transformation of Small and Medium-Sized Manufacturing Enterprises in China

Abstract

This study evaluates the factors influencing the digital transformation of small- and medium-sized manufacturing enterprises (SMMEs) in China, introducing a hybrid evaluation framework that integrates multiple dimensions through the Grey-DANP method. Unlike previous descriptive studies, this research quantifies factor weights and maps their interrelationships across economic, environmental, socio-cultural, personal, and technological dimensions. The empirical analysis identifies five key determinants: talent team, internal organizational change, employee work style, digital infrastructure, and business model innovation. The findings reveal that economic and socio-cultural factors initiate transformation, while technological and environmental factors serve as crucial implementation channels. Successful digital transformation requires balancing internal capabilities with external support measures. This study provides practical management recommendations, including establishing cross-functional digital transformation teams, implementing phased digital upgrades, investing in talent and technology development, and creating robust evaluation and risk mitigation systems. The framework contributes to existing literature by offering both theoretical insights and actionable guidelines for resource-constrained SMMEs, bridging the gap between academic research and practical implementation.