Digital transformation of small and medium-sized businesses in Ukraine under martial law: challenges, opportunities, and adaptation strategies

Казак, Оксана Олексіївна and Дідушок, Роман Зіновійович (2025) Digital transformation of small and medium-sized businesses in Ukraine under martial law: challenges, opportunities, and adaptation strategies Європейський науковий журнал Економічних та Фінансових інновацій, 3 (17). pp. 558-567. ISSN 2617-8648

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Abstract

The article highlights the peculiarities of digital transformation of small and medium-sized enterprises (SMEs) in Ukraine under martial law, identifies the main challenges and opportunities arising from the acceleration of digitalization processes. The study analyzes the current state of SME adaptation to digital technologies, changes in consumer behavior patterns, and their impact on the evolution of business models in wartime. A comprehensive analysis was conducted of official statistics from the State Statistics Service of Ukraine, industry research by the Ministry of Digital Transformation of Ukraine, reports by the European Business Association, UNDP, and analytical materials from scientific institutions, the results of which identified a significant acceleration in the digitalization of SMEs due to martial law, as well as a fundamental shift in business models from strategic digitalization planning to the crisis-driven need for survival and adaptation. The research identified three different levels of technological maturity in the digitalization of SMEs: basic level (60% of enterprises), which uses social networks, messengers, online banking, and simple CRM systems; advanced level (30% of enterprises), which implements e-commerce platforms, integrated management systems, cloud services, and digital payment solutions; and innovative level (10% of enterprises), which uses artificial intelligence, business process automation, IoT solutions, and blockchain technologies. The relationship between levels of technological maturity and the financial and economic performance of SMEs has been identified. A comprehensive typology of SME digital adaptation strategies has been developed: reactive strategies, which involve minimal adaptation under external pressure; adaptive strategies, which involve the systematic implementation of digital solutions for core business processes; and transformational strategies, which involve a radical reconstruction of the business model based on digital technologies and demonstrate the highest sustainability indicators with a business activity recovery index of 0.52 compared to 0.31 for reactive strategies. The main barriers to digital transformation have been identified: financial constraints, staff qualification issues, technical complexities, and integration difficulties. The research offers practical recommendations for the gradual implementation of digital solutions, the use of government platforms, investment in staff training, and the development of backup strategies. With regard to public policy, recommendations include expanding financial support programs, developing digital infrastructure, and creating industry competence centres. The research concludes that the digital transformation of Ukrainian SMEs under martial law is not only a forced adaptation but also a strategic opportunity to create a more resilient and competitive economy through the joint efforts of business, government, and the international community

Item Type:	Article
Uncontrolled Keywords:	digital transformation; small and medium-sized enterprises; martial law; business modeling; digital adaptation strategy; innovation; digitalization
Subjects:	Статті у періодичних виданнях > Фахові (входять до переліку фахових, затверджений МОН)
Divisions:	Факультет економіки та управління > Кафедра фінансів
Depositing User:	доцент Оксана Олексіївна Казак
Date Deposited:	10 Dec 2025 12:18
Last Modified:	10 Dec 2025 12:18
URI:	https://elibrary.kubg.edu.ua/id/eprint/54690

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