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DOI: https://doi.org/10.34069/AI/2022.55.07.35
How to Cite:
Bannikov, V., Lobunets, T., Buriak, I., Maslyhan, O., & Shevchuk, L. (2022). On the question of the role of project management in
the digital transformation of small and medium-sized businesses: essence and innovative potential. Amazonia Investiga, 11(55),
334-343. https://doi.org/10.34069/AI/2022.55.07.35
On the question of the role of project management in the digital
transformation of small and medium-sized businesses: essence and
innovative potential
Sobre la cuestión del papel de la gestión de proyectos en la transformación digital de las
pequeñas y medianas empresas: esencia y potencial innovador
Received: August 20, 2022 Accepted: September 14, 2022
Written by:
Bannikov Valentyn151
https://orcid.org/0000-0001-8865-3767
Lobunets Tetiana152
https://orcid.org/0000-0002-1973-4181
Buriak Ievgen153
https://orcid.org/0000-0002-8039-004X
Maslyhan Olena154
https://orcid.org/0000-0002-8465-548X
Shevchuk Larysa155
https://orcid.org/0000-0002-7667-3872
Abstract
Digital transformation is penetrating all areas of
activities. This process is irreversible and poses
challenges to businesses. The leading role for the
successful digital transformation of small and
medium-sized businesses is played by effective
project management. The purpose of the article
is to study the role of project management in the
digital transformation of small and medium-
sized businesses, to identify the key issues and
the scenario of transformation, to outline the
portrait of a project manager. Methods used:
analysisб synthesis, graphic methods, the method
of establishing cause-and-effect relationships. As
a research result, theoretical aspects of project
management and trends in understanding its role
in the digital transformation of businesses were
determined. The key questions for project
management are outlined and its scenario is
defined. The key skills and qualities of an
151
Master's degree, Project Manager Dataart Solutions, New York, United States.
152
PhD in Economics Associate Professor Department of Production and investment management Faculty of Agricultural
Management National University of Life and Environmenta lSciences of Ukraine, Ukraine.
153
Doctor of Science in Economics, Ass. Prof. Professor of Management Department Economic and Management Faculty
Kremenchuk Mykhailo Ostrohradskyi National University Pershotravneva str., Ukraine.
154
Doctor of Economic Sciences, Associate Professor Faculty of Management and Hospitality Industry, Department of Management,
Management of Economic Processes and Tourism, Mukachevо State University Uzhgorod Street, Ukraine.
155
Candidate in Law, Associate Professor of the Department of Civil Law Disciplines, Faculty of Law, Lesya Ukrainka Volyn National
University, Ukraine.
Bannikov, V., Lobunets, T., Buriak, I., Maslyhan, O., Shevchuk, L. / Volume 11 - Issue 55: 334-343 / July, 2022
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effective project manager are described. The
innovative potential of project management is
considered. The scientific novelty of the research
consists in clarifying the aspects necessary for
effective project management, taking into
account the trends in economic and sustainable
development. The practical significance of the
research results lies in outlining the areas of
activity and improving the professional and
extra-professional skills of project managers in
the process of digital transformation.
Keywords: management, organization, soft
skills, hard skills, sustainable development.
Introduction
At the current stage of development, the
management of any organization must meet the
challenges formed by the globalization processes
in the economy. One of these challenges is the
ubiquitous and unalter native digital
transformation, which is both a way of
optimizing businesses and a difficult and
complex task for their management. Digital
transformation cannot happen immediately, its
process requires a significant time investment
and a phased and experienced implementation.
The responsibility for the successful
implementation of digital transformation lies
with all participants in the process: the
government, organizational leaders, managers,
stakeholders, consumers, etc.
A special role in the digital transformation
process is assigned to project management as one
of the innovative management methods.
Digitalization of business activities can be
regarded as a large-scale project, which has a
final goal, stages, time constraints, and,
therefore, is an object of management for project
managers. Of particular importance is the digital
transformation of small and medium-sized
businesses, which in developed countries are
among the main drivers of the economy, provide
a large number of jobs, and are the most adaptive,
mobile, and innovative business units.
The active process of digital transformation is
reflected in numerous works of Ukrainian and
foreign researchers. Strutynska (2020) and
Garzoni et al., (2020) in their studies point to the
need for digital transformation and propose
certain scenarios or projects to facilitate its
implementation in the activities of small and
medium-sized businesses. The theoretical
foundations of digital transformation are
considered in the works of Vial (2021) and Ebert
and Duarte (2018), where digital transformation
is primarily linked to the implementation of the
latest technologies in the activities of businesses.
However, some works aim to explore recent
developments in the understanding of the digital
transformation process, in particular, Nadkarni
and Pruegle (2021) emphasize that digital
transformation is not only about the application
of innovative technologies, but also about the
effective management of the process. That is
recent trends in understanding digital
transformation and defining criteria for its
success bring the human factor of the process to
the forefront. First of all, this applies to the
management of digital transformation by project
managers, because, as noted earlier, the digital
transformation of a single business can be seen as
a project that requires successful management,
setting goals, defining time limits, budget,
milestones, etc.
There are also many works devoted to the study
of project management. Gasemagha and Kowang
(2021) note the key role of project managers in
the success of any project as a whole. Henkel et
al., (2019) note that the most important trait of a
project manager is the ability to build
relationships between project implementers,
communication, and leadership skills. Alvarenga
et al., (2019) note the need for technical skills in
project managers, but also emphasize that they
are not crucial for members of the profession.
Stjepić et al., (2020) is one of the few researchers
who note the importance of the connection
between an organization's management, its
leaders, all stakeholders, and digital
transformation. However, it should be noted that
the own role of project management in the digital
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transformation of small and medium-sized
businesses in the works of scientists is considered
extremely fragmented, as researchers usually
focus on one of the aspects under study - either
the process of digital transformation or the basis
of project management. Therefore, an important
scientific issue is the study of these aspects in
their combination, because, as mentioned above,
digital transformation is not limited to new
technologies: the leading role in its successful
implementation is played by the factor of
effective management of the process by
specialists with the appropriate qualifications and
relevant skills.
The purpose of the article is to investigate the
role of project management in the digital
transformation of small and medium-sized
businesses, to identify key issues and the
scenario of this transformation, and to define a
portrait of a modern project manager.
Achievement of the objectives requires the
following tasks: to conduct a theoretical study of
the aspects of project management and identify
current trends in understanding its role in the
digital transformation of businesses; to identify
key issues of project management and the main
directions of implementation of the digital
transformation of business processes; to reveal
the innovative potential of project management
in the digital transformation of small and medium
businesses by comparing the results of the study
and the views of scientists.
Literature Review
The rapid development of transformation
processes, constant changes in trends, and the
importance of improving quality in all spheres of
life and activities of people cause a high
scientific interest in the topic under study.
Strutynska (2020) devoted her Ph.D. thesis to the
study of digital transformation as an imperative
for the innovative development of business
structures. The scientist defined the theoretical
and applied foundations of digital
transformation, its current state, problems, and
prospects. The work focuses on the digital
transformation of small and medium-sized
businesses.
Garzoni et al., (2020) developed their own
project to promote the digital transformation of
small and medium-sized businesses. The project
was created for the Italian region and funded by
the Italian Ministry of Economic Development.
The main goal of the project is to increase the
interest of small and medium-sized businesses in
digital transformation and to further highlight the
most interested among them.
Ebert and Duarte (2018) foresee a rapid pace of
digital transformation and its penetration into all
areas of the economy, but the researchers
acknowledge the many obstacles in its path, from
which they conclude that digital transformation
can both stimulate and hinder the development of
businesses.
Many researchers recognize that digital
transformation today is not just a process of
adopting the latest technologies. In fact, the
digital transformation of business operations
must be combined with experienced management
of this process by the management of
organizations (Nadkarni & Prügl, 2021). Vial
(2021) emphasizes that technology alone is not
the main component of the digital transformation
process. Its success must first and foremost be
ensured through an effective strategy,
organization, and company culture.
The reviewed studies are only a small part of the
total volume of scientific work on the digital
transformation of businesses. The active interest
of scientists in digital transformation tends to
increase further due to the rapid changes in the
field of growth of its importance for the economy
and business. This underscores the relevance of
the topic of the article and stimulates further
steps in its development from a scientific point of
view.
Methodology
During the study, the following scientific
methods were used: the method of analysis and
synthesis in the study of theoretical aspects of the
issue under study and current trends in its
understanding, graphic methods to visualize and
structure the results obtained, the method of
establishing cause-effect relationships in the
determination of relationships and dependence
between the concepts under study.
The complex nature of the research requires its
distribution into separate stages. At the first
stage, a theoretical study of the aspects of project
management was conducted and current trends in
understanding its role in the digital
transformation of business were considered. This
stage substantiates the necessity of project
management in the effective provision of the
process of digital transformation of small and
medium-sized businesses. The exceptional role
of small and medium-sized businesses in the
economic processes of the country was
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explained, and the criteria for their success
compared to other business units in the
implementation of digital transformation were
defined. The definitions of the key concepts
under study, in a particular project, project
management, and digital transformation, are
provided.
The second stage of the study establishes the
main directions of digital transformation of small
and medium-sized businesses, in particular
outlines its scenario, and agrees on the key issues
of project management arising in the course of
digital transformation. In addition, the portrait of
modern project management is characterized in
terms of defining the skills it must possess in
order to succeed in the process of digital
transformation.
The final stage reveals the innovative potential of
project management in the digital transformation
of small and medium-sized businesses by
comparing the results of the study and the views
of scholars. In addition, ways to further expand
and unlock the innovative potential of project
management through the combination of its
principles with the principles of sustainable
development are identified.
Results and Discussion
A theoretical study of the aspects of project
management. Current trends in
understanding its role in the digital
transformation of businesses
Project management is a relatively new method
of management, but in the short period of its
existence, it has already proved the effectiveness
of its implementation in the general management
system of organizations. Many modern
businesses concentrate their activities around the
execution and management of individual
projects: building apartment complexes,
developing software, writing, and publishing
scientific or artistic works are all examples of
projects that require experienced management.
Project management is widespread in virtually all
areas of goods and services production,
particularly in information technology (IT).
Project manager in IT companies is an extremely
in-demand profession because it is the
experience, the ability to organize the process
and its performers, leadership and personal
qualities, and other skills of such specialists that
determine the success of projects in general. It
follows that project management, as an
innovative method of management, often goes
hand in hand with the digital transformation of
businesses, the economy, and the state as a
whole.
As we know, small and medium-sized businesses
are the most flexible, mobile, adaptive, and
innovative enterprises. Small and medium-sized
businesses are important for the sustainable
development of the economy and play a
significant role in enhancing a country's
innovation potential and export growth. In
developed countries, the share of small and
medium-sized enterprises is 95%, and they
provide about 50% of GDP, most jobs, and 25%
of exports. In the context of the digital
transformation of the economy, small and
medium-sized businesses must understand the
opportunities and benefits of digitalization in
their activities; be client-oriented; apply data
effectively; adopt an innovative way of thinking;
restructure their business models according to
modern requirements; and make investments in
specialists in order to maintain and increase
competitiveness (Strutynska, 2020).
Given all of the above, it can be argued that the
study of the role, essence, and potential of project
management in relation to the digital
transformation of small and medium-sized
businesses, taking into account the possibility of
achieving maximum efficiency in this area is an
extremely timely and relevant issue.
The role of project management in the digital
transformation of small and medium-sized
businesses is a complex and multidimensional
issue, therefore, the study of its essence should
begin with the establishment of definitions of its
individual components, as well as current trends
in changing the trend of their understanding.
The definition of the project itself varies in its
essential characteristics in the works of
researchers. However, its most commonly used
definitions most often contain the presence of
quantitative and qualitative goals, a number of
comprehensive measures to achieve these goals,
as well as clearly defined boundaries of the
beginning and end of the project (Tereso et al.,
2019). Thus, a project can be defined as the
creation of a particular unique product or service
within a predetermined time frame and resources.
Project management involves the use of
processes, methods, skills, knowledge, and
expertise to achieve certain project goals
according to project eligibility criteria within
agreed-upon parameters. Project management
has outcomes that are limited by project time and
budget (Murray-Webster & Dalcher, 2019).
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In turn, digital transformation encompasses
significant changes specific to society, the
economy, and other industries through the use of
digital technology (Vial, 2021). Digital
transformation is the introduction of disruptive
technologies to improve productivity, value
creation of goods and services, and social well-
being. Digital transformation is predicted to have
a high growth rate and rapid penetration in
industries, but there are also certain barriers to it,
such as heterogeneous or inadequate structures
and culture of companies, lack of well-defined
strategies, shortage of skilled labor, lack of
appropriate employee skills, inadequate
consumer regulations, lack of funding, in
particular for small and medium businesses
(Ebert & Duarte, 2018). Thus, digital
transformation, defined as the transformation
with respect to the changes that modern digital
technologies bring to companies' business
models, products, and organizational structures,
is one of the most common challenges for today's
management of existing businesses. Digital
capabilities must come together with skilled
workers and organizational leaders to unleash
their transformational power (Nadkarni & Prügl,
2021).
Recent research has led to a change in the
understanding of certain aspects of digital
transformation. In particular, regarding
transformation through IT, it was found that
technology is not the main aspect of the transition
to an innovative way of doing business and
maintaining competitiveness, but only part of this
process. In addition to the technology itself,
strategy, organizational and structural change, as
well as organizational culture, play an important
role (Vial, 2021). From this, we can conclude that
the successful digital transformation of
businesses, including small and medium-sized
ones, is impossible without competent and
experienced management, in particular project
management, development of effective
strategies, organization of the process and
motivation of personnel, enhancement of
corporate culture, etc.
Project managers are entrusted with many
functions, fulfillment of which allows to carry
out and complete projects in a quality manner in
accordance with the set requirements and
expectations of customers within the
predetermined timeframe and budget. Therefore,
the project manager must be proficient in the
relevant knowledge and skills to use the methods
and techniques that the project needs and
manage, such as planning, budgeting, analytical
skills, etc. However, the most important task of a
project manager is the ability to organize and
manage the interaction of project implementers
(team) in order to achieve maximum efficiency
in the project work (Henkel et al., 2019).
So, the project manager is responsible for time
management, cost, quality, project integration,
team members, communication, risks, and assets.
Thus, the success of project execution and
delivery depends primarily on the project
manager (Gasemagha, & Kowang, 2021).
Digital transformation of business processes: key
issues of project management and the main
directions of implementation
The key questions that an organization,
particularly its project management, needs to
answer are:
• How to adapt to new trends in digitalization;
• How to identify new opportunities and
scenarios for business development;
• How to start the process of digital
transformation;
• How to attract new talent from the market;
• How to start change management;
• How to convince stakeholders to support the
idea;
• How to start funding and managing digital
transformation projects;
• How to help employees and business
partners integrate into the process through
digital means (Maheshwari, 2019).
The answers to these questions depend on the
specifics of the business, the scope of the
business, the specific stakeholders and
participants in the process. To effectively address
these issues, a project manager should have, as
mentioned above, confident communication and
leadership skills, managerial and organizational
skills, as well as sufficient knowledge of
technology to understand customer
requirements, user needs, goal setting for
performers, effective process design, in general,
Most often all the above skills are divided into
so-called soft skills (soft skills) and hard skills
(technical skills). Soft skills are super
professional skills, i.e., such qualities which are
not directly related to the profession but can play
a decisive role in successful professional
activities. They are the ability to find a common
language with people, resolve conflicts,
leadership qualities, etc. Figure 1 shows the key
soft skills required for a project manager.
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Fig. 1. Soft skills, necessary for the successful professional activities of a project manager (Zuo et al., 2018)
Hard skills, or technical skills, although
according to many researchers do not play the
main role in the project manager profession
(Alvarenga et al., 2019), are also a prerequisite
for their professional development. Specific
technical skills required by a project manager
depend on the business area, but in general,
during the digital transformation of an
organization's business processes, a specialist
must navigate the following basic digital
transformation engines (Fig. 2).
Fig. 2. Technical drivers of digital transformation (Maheshwari, 2019).
Cloud
computing
Mobile
driver
Internet of
Things
Social
driver
Technical drivers of
digital
transformation
Big data
Blockchai
Automation
AI
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Cloud computing technologies offer flexibility
and scalability at such a high level that they make
them a prerequisite for all digital transformation
strategies (Lambropoulos et al., 2021).
The structure of the Industrial Internet includes
infrastructure, technologies, and programs that
bridge the gap between the real industrial world
and the virtual world (Borangiu et al., 2019).
By implementing extensive data, businesses can
become data-driven organizations to update their
marketing programs by collecting large amounts
of structured and unstructured data (Miklosik &
Evans, 2020).
Automation consists of transferring manual and
repetitive tasks from humans to robots
(programs) (Maheshwari, 2019).
Artificial intelligence refers to a machine's ability
to learn from experience, adapt to new input data,
and perform human tasks (Kitsios, &
Kamariotou, 2021).
Blockchain technology offers the following
benefits: increased security, fast transactions,
decentralization, immutability, transparency, and
trust (Merkaš et al., 2020). Simply put, a
blockchain is a distributed ledger that provides a
way for a community to record and share
information, in which each participant maintains
his or her own copy of the information, and all
participants must check for updates. Information
refers to transactions, contracts, assets, identities,
etc. (Grech & Camilleri, 2017).
The social driver contains the transformation of
relationship building and information discovery
within and outside the enterprise. The mobile
driver consists of transforming how people
interact, use information and services, and
collaborate (Maheshwari, 2019).
The transition to a digital way of doing things
cannot be realized immediately, it is a gradual
process in which it must be adapted to the
specific business environment as well as
appropriately perceived by the organization's
employees. For this purpose, project
management must provide an effective and
realistic scenario for the digital transformation of
businesses, including small and medium-sized
ones (Fig. 3).
Fig. 3. Scenario of digital development of small and medium-sized businesses (Strutynska, 2020)
The analysis of Figure 3 confirms the view
developed in the previous section that digital
transformation is not only about introducing
innovative technologies but also about
organizing such a process, developing plans,
scenarios, strategies, team coordination - that is,
the very tasks that project managers are charged
with. In addition, during the combination of
business processes with digital transformation,
other actors are involved, including internal and
external stakeholders, customers, technical
director, process management managers, etc.
(Stjepić et al., 2020), which requires project
managers to have high diplomatic skills, the
Simple
Realistic
Effective
Client-centered
Technical
driver
Organizational
development
should be based
on modern
technology
Uncompromising
focus on
customer needs
Focusing on the
goals that drive
digitalization
Setting realistic
goals and
objectives in
accordance with
the actual
capabilities of the
organization
Creating a vision
that every
employee will
understand,
regardless of skill
level
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ability to collaborate and reach a mutual
agreement with all participants in the process.
To summarize the above, a successful digital
transformation of small and medium-sized
businesses largely depends on successful project
management, whose tasks should be: organizing
the transformation process, ensuring effective
communication between the participants in the
process, and managing technical changes (Fig.
4).
Fig. 4. The main directions of project management in the course of digital transformation of small and
medium-sized businesses.
Thus, project management in the process of
digital business transformation is a specific
mechanism that provides this process in three
interrelated areas.
The innovative potential of project management
in the digital transformation of small and
medium-sized businesses: a comparison of the
results of the study and the views of scientists
The study identified the role, key issues, and
main directions of project management in the
digital transformation of small and medium-sized
businesses and described the scenario of such
transformation. It was found that digital
transformation is a gradual process, requiring a
breakdown into stages. The views of most
researchers agree with this approach, but some of
them are of the opinion that in order to unlock the
innovative potential of project management in
the digital transformation of businesses to the
full, before the digitalization proper, it is
advisable to implement projects which, first, will
increase the interest of small and medium
businesses in digitalization, and second, will
highlight from all organizations involved in the
project those that are most interested and have
the highest potential. Such projects concern, first
of all, the state support of digital transformation,
because they should be implemented at the
initiative of the national government. For
example, Garzoni et al. (2020) have developed
their own four-level approach called Smart
District 4.0, which promotes the digital
transformation of small and medium-sized
businesses with different levels of involvement
and impact of transformation (the object of the
study was the Puglia region in Italy; the project
was funded by the Italian Ministry of Economic
Development). The four levels highlighted by the
researchers promote the interest of small and
medium-sized businesses in the digital
transformation and identify the most interested
among them and are as follows:
Technical
support
Organization
Communications
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1. Digital Awareness: builds on SMBs'
awareness of digital transformation
opportunities. Provides information about
the project and collecting subscriptions
through calls and live meetings.
2. Digital inquiries: at this level, technology
solutions are presented in terms of
functionality and opportunities to attract the
attention of small and medium-sized
businesses (means: working sessions,
workshops, focus groups, etc.).
3. Digital collaboration: based on their
interests, companies participate in research
on the potential benefits of digitalization in
their business processes and strategies.
4. Digital Transformation: This is the level of
the highest attraction that a limited number
of interested small and medium-sized
businesses see. At this level, they have a
strong interest in the digitization process,
and this can be the core set of the project
(Garzoni, et al., 2020).
Although the project was developed for a
particular region, its main ideas can be used and
successfully implemented, in particular through
effective project management, in virtually any
country.
Ukraine is also taking steps to implement and
state support for digital transformation. The
government has approved the Order № 67-r “On
Approval of the Concept of development of the
Digital Economy and Society of Ukraine for
2018-2020 and the Approval of the Action Plan
for its Implementation” (2018), as well as the
digital government portal Action (Diya, 2022),
which pays special attention to supporting the
creation and running of small and medium
businesses. Thus, in order to unlock their
innovative potential and take advantage of all the
opportunities of government support for
businesses, project managers beyond the other
must be aware of the latest legislative changes,
trends in government policy, and understand the
legal aspects of the issue.
However, the innovative potential of project
management in the digital transformation of
business does not stop there. In particular,
researchers are now inclined to consider project
management and its role in the digitalization
process from the perspective of sustainability, the
key objective of which is not only to ensure the
growth of company value or high revenues but
also to balance economic efficiency, social
impact, and ecology. This fact has led to the
emergence of the concept of sustainable project
management, operating from the following
principles: reflecting all perspectives of
sustainability rather than company enrichment;
considering the entire project cycle and results
from a sustainability perspective; involving
stakeholders in management; promoting
sustainability for both the organization and
society (Stanitsas et al., 2021).
With all of the above in mind, it can be
summarized that the digital transformation of
small and medium-sized businesses is a gradual,
complex, multi-step process, the leading role in
the success of which is played by successful
project management. The effectiveness of project
management depends on a number of factors, in
particular, the project manager should have
developed communication skills (including
leadership qualities, the ability to establish team
relations, the ability to resolve conflicts, etc.),
organizational skills, strong technical skills, as
well as decisions, developments in the world and
the economy The full innovative potential of
project management can be unlocked by
applying the principles of sustainable
development in accordance with the latest trends
in the world.
Conclusions
As a result of the study, the theoretical aspects of
project management in the process of digital
transformation of small and medium-sized
businesses were defined. In particular, the
concept of the project, project management, and
digital transformation were clarified, and the own
role of project management in the process of
digital transformation was defined.
Aspects of the digital transformation of business
processes were established: the issues of project
management in the process of transformation, its
scenario, the key skills of project managers
necessary for the successful implementation of
the transformation. It is established that a project
manager should have soft skills, which can
include communication skills, in particular
leadership qualities, the ability to build
teamwork, communicate with stakeholders and
customers, resolve conflicts and other skills,
organizational skills, consisting ineffective
process management, as well as deep technical
knowledge.
In addition, the project manager must be aware
of the latest trends in politics and economics in
order to effectively leverage government support
for the digital transformation of businesses. In
addition, the innovative potential of project
management can be expanded by its focus on the
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principles of sustainable development, which
includes the inclusion of not only the tasks to
increase the market value of the company but
also socially significant tasks and tasks of care
for the environment in the activities of the project
manager.
Prospects for further research are the definition
of tasks and main directions of activity of
sustainable project management itself, as well as,
taking into account modern conditions of
economic management, the definition of new
challenges for project managers in the process of
digital transformation in conditions of escalating
military conflicts.
Bibliographic references
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Soares, C. A. P., & Silva, W. da S. e. (2019).
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project success. International Journal of
Managing Projects in Business. Doi:
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