Exploring Bricolage in Digital Transformation for SME Professional Services Firms

In December 2024, Dr Sung Hwan Chai from the Knowledge Transfer Partnership (KTP) Team had the privilege of presenting our paper, "Understanding the Role of Bricolage in the Digital Transformation of Small and Medium-Sized Professional Services Firms", at the prestigious International Conference on Information Systems (ICIS) in Bangkok. This study, which is an outcome of our collaborative KTP project between Alliance Manchester Business School, Aston Business School, and Beever and Struthers accounting firm, examines how small and medium-sized enterprises (SMEs) navigate the complex and resource-intensive process of digital transformation (DT).

The research sheds light on the unique challenges faced by SMEs, such as resource constraints, reliance on external vendors, and strict regulatory compliance. It explores how these constraints shape the way SMEs experience and manage digital transformation, often leading to a phenomenon known as bricolage.

What is Bricolage?

Bricolage refers to the process of "making do" with resources readily available at hand. Instead of relying on bespoke systems or in-house development—options often reserved for larger firms—SMEs adopt a more improvised and creative approach to digital transformation. This includes combining vendor-provided solutions, adapting existing tools, and finding workarounds to bridge gaps in functionality.

To understand this phenomenon, the study draws on two theoretical frameworks:

1. Flow-Oriented Perspective (Baygi et al., 2021): This lens highlights the nonlinear and dynamic nature of digital transformation, emphasizing:

• Kairotic Timing: Recognizing and seizing the right moments for transformation.

• Attentionality: Maintaining focus amidst competing demands.

• Undergoing: Navigating a continuous process of change and adaptation.

2. Bricolage (Baker and Nelson, 2005): This framework provides insight into how SMEs:

• Make Do: Use available resources creatively.

• Leverage Resources at Hand: Identify and utilize what is immediately accessible.

• Combine Resources: Integrate diverse tools and solutions to address specific challenges.

These perspectives help explain how SMEs approach digital transformation as an iterative and resource-driven process rather than a carefully planned strategy.

Observations from the Beever and Struthers Case Study

The study focuses on the ongoing digital transformation at Beever and Struthers, a UK-based SME professional accountancy firm. The findings highlight two recurring themes in the firm’s journey:

1. Vendor Dependency and Fragmentation:

• Without internal development resources, the firm relied on multiple external software vendors, resulting in a "patchwork" of solutions. For example:

• The use of Circit and Confirmation.com for bank confirmations due to compatibility issues with some banks on one platform or the other.

• The adoption of Validis to address gaps in data ingestion where Inflo struggled with client systems like Microsoft Dynamics.

• This fragmented ecosystem introduced inefficiencies and created challenges in integration and usability.

2. Regulatory Compliance Challenges:

• In a heavily regulated industry, Beever and Struthers had to ensure all tools and processes met the standards of bodies like the Financial Reporting Council (FRC).

• While tools like CCH provided compliance assurance, transitioning to modern platforms like Inflo Workpapers was delayed due to concerns about meeting regulatory expectations. This balance between innovation and compliance added another layer of complexity to the firm's transformation.

Key Findings

The study highlights how bricolage naturally emerges as SMEs navigate digital transformation under constraints. Some key observations include:

• Improvised Solutions: SMEs often piece together partial solutions from various vendors to create functional systems. This approach may not be seamless, but it allows firms to adapt within their limitations.

• Dual-Resource Landscape: SMEs operate between internal resource constraints and an abundance of external vendor solutions, creating both opportunities and challenges.

• Unstructured Evolution: Digital transformation in SMEs is less about following a structured strategy and more about responding to immediate needs through trial and error.

These findings reflect the reality that SMEs must often adapt reactively rather than proactively due to their unique constraints.

Implications for SMEs

While the study does not propose bricolage as a deliberate solution, it underscores the importance of understanding its role in SME digital transformation. For SME leaders, recognizing this phenomenon can help manage expectations and identify ways to better navigate the complexities of external vendor relationships and regulatory compliance.

Looking Ahead

This research contributes to the growing discourse on how SMEs experience digital transformation. By highlighting the emergent nature of bricolage, it opens new avenues for understanding the interplay between internal constraints and external resources in smaller organizations.

At Beever and Struthers, these findings provide valuable insights into our ongoing transformation journey and the broader challenges faced by SMEs in our industry. We look forward to further research and collaboration to explore how SMEs can better adapt to an increasingly digital landscape.

If you are interested in reading the full paper, you can access it here along with all the references.