From Technology-Driven to Human-Centered: Organizational Capabilities for Sustainable Digitalization in SMEs

Abstract

Digitalization is rapidly changing industrial work systems. Amidst this globally experienced transformation process Finnish working life has faced slow productivity growth and increasing problems in employee well-being. Manufacturing and logistics sectors are under pressure to adopt new digital technologies, and change is often not managed in a sufficiently human-centered way. This study examines how digitalization is managed in small and medium-sized enterprises (SMEs), and how human factors and ergonomics (HFE) are addressed in this regard. This study is based on interviews with management and expert representatives from 55 SMEs. Data were analyzed using deductive, theory-driven content analysis, structured along dynamic capabilities (sensing, seizing, shifting) across the processes of management, design and HFE. Digital technologies were typically introduced on technological and economic grounds, while HFE was weakly embedded in routines and decision-making. Digital change procedures were often unclear; information on human work was fragmented and rarely used systematically. HFE competence was narrow and focused on physical ergonomics, with limited attention to cognitive and organizational factors. Training needs were seldom assessed in a structured way. Across sensing, seizing and shifting, employee input was common but rarely translated into systematic analysis, decision criteria, or lifecycle monitoring of usability, occupational safety, workload and well-being at work. Building on these findings, the study presents an initial version of a human-centered assessment framework to guide selection, design, piloting, training, and continuous follow-up after adopting new technology.

Keywords: Digitalization, Dynamic Capabilities, Human Factors And Ergonomics (HFE), Logistics, Manufacturing, SMEs

DOI: 10.54941/ahfe1007605