Abstract:

The aim of this paper is to examine how governments plays an orchestration role for the digital transformation journey of manufacturing SMEs through the National Innovation System (NIS).

To address this aim, we explore the following research question: How does the government orchestrate the digital transformation of manufacturing SMEs through a national innovation system? We investigate this by drawing on a longitudinal single case study of South Korea’s Manufacturing Innovation 3.0 initiative (2015–2024).

Our results show that digital transformation is not merely a technological upgrade based on government-sponsored initiative but an organisational and behavioural evolution supported by coordinated policy, capability building, and ecosystem learning. We reconceptualise the NIS as a macro-level orchestrator that extends beyond traditional R&D functions to align actors, mobilise resources, and govern interfaces. Empirically, we identify three interrelated dimensions: institutional orchestration, knowledge diffusion, and subsystem facilitation where we operationalise orchestration in practice.

We believe this study contributes to NIS and digital transformation literature by offering a systemic perspective on how governments can design adaptive and inclusive innovation systems that enhance SME competitiveness in the digital era.

Please choose your submission type: Full Paper

Primary Track: Innovation

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Dr. Qijun Zhou