Leveraging smart technology for resource efficiency and performance optimisation in modern small and medium-sized enterprises (SMEs)

Abstract

Small and medium-sized enterprises (SMEs) face a paradox in innovating for competitiveness versus the prohibitive costs and resource constraints of adopting smart technologies. This study investigates how SMEs navigate this challenge, analysing the trade-offs between scalability and limited resources. It employs a multi-method qualitative design, integrating a historical analysis of adoption pathways with comparative case studies of smart grid deployment in the United States and precision agriculture in Kenya. The findings showed that the growth of big data and the potential for optimised resource allocation are key adoption drivers. Furthermore, the analysis demonstrated that the integration of smart technologies directly targets operational efficiency, scalability, and cost management. A modelled economic impact assessment, using conservative estimates derived from the case studies and industry benchmarks, projects potential improvements in resource efficiency and performance optimisation, with a projected Return on Investment (ROI) underscoring economic viability. Based on these findings, the study concludes that for SMEs to fully leverage these benefits, support mechanisms must be strategically aligned with technologies that demonstrate clear economic returns. We suggest that policymakers and business leaders move beyond one-size-fits-all approaches towards targeted interventions such as digital literacy programs and context-sensitive infrastructure subsidies to enable widespread and equitable integration for sustained competitive advantage.