How Can Management Consulting Services Be Used While Crafting Competitive Strategies for Small and Medium-Sized Enterprises in the Digital Age?

The chapter delves into the critical role of management consulting services in helping small and medium-sized enterprises (SMEs) develop competitive strategies in the digital age. With over 23 million SMEs in the European Union, accounting for 99% of businesses and two-thirds of private-sector jobs, their success is pivotal for economic stability and growth. Despite substantial support from the European Union, many SMEs struggle with strategic decision-making, resource allocation, and leveraging digital technologies. The chapter proposes a new conceptual framework that integrates management consulting, dynamic capabilities, and digital transformation to address these challenges. This framework is unique in its focus on the direct relationship between these factors, offering a comprehensive model that has not been extensively explored in prior research. The chapter also highlights the inherent advantages of SMEs, such as agility and adaptability, and how management consulting can aid in strategic pivoting and resource allocation during digital transformation. The research methodology involves a structured literature review, including qualitative analysis of 55 sources from SCOPUS and Web of Science databases. The findings underscore the potential roles and contributions of management consulting in aiding SME management with strategic development and resource allocation. The chapter concludes by suggesting directions for future research, including empirical validation of the framework and expert interviews with management consulting executives.