Abstract

This paper explores the challenges posed by the low digital maturity of Small and Medium-sized Enterprises (SMEs) in developing countries, using the example of viticulture in the northern region of Tarapacá in Chile, part of the Atacama Desert. The study proposes a concept for a Digital Innovation Hub (DIH) that considers region-specific requirements. We argue that the low digital literacy score in Chile exemplifies a broader issue in developing countries. Drawing upon previous insights from an explorative study on digital maturity in Chilean SMEs, we propose an action-oriented approach and delve into the critical role of DIHs as a facilitator for a digitally transformed business landscape for SMEs. Such hubs can offer competent and provider-neutral contact points for information, awareness-raising, and qualification of SMEs. Central to such an approach are considerations of regional and cultural characteristics that influence the uptake and sustainable implementation of digital technologies. Amongst these characteristics are, for example, the level of hierarchy, uncertainty avoidance, and the environmental challenges due to the extensive use of freshwater by the mining industry in competition with agricultural food production. Despite local specificites, the concept of DIHs considering regional and cultural characteristics may be beneficial for SMEs in other developing countries.