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Procedia Computer Science 00 (2021) 000–000
Procedia Computer Science 00 (2021) 000–000 www.elsevier.com/locate/procedia
ScienceDirect www.elsevier.com/locate/procedia

Procedia Computer Science 192 (2021) 2753–2760

25th International Conference on Knowledge-Based and Intelligent Information & Engineering

25th International Conference on Knowledge-Based
Systems and Intelligent Information & Engineering
Systems
Influence of Digitization on Employee Satisfaction
Influence of Digitization
in Small on Employee
and Medium-sized Satisfaction
Enterprises
in Small and Medium-sized Enterprises
Joerg Bueechla*, Ralf-Christian Härtinga, Mara Schrödera
Joerg Bueechla*, Ralf-Christian Härtinga, Mara Schrödera
a
Aalen University of Applied Science, Beethovenstr.1, 73430 Aalen, Germany
a
Aalen University of Applied Science, Beethovenstr.1, 73430 Aalen, Germany

Abstract
Abstract
Digitization is one of the main drivers of changing the way of work within enterprises because new business models evolve from
recent digitization
Digitization is one processes.
of the mainBesides
driversthe ongoing information
of changing technologies
the way of work in the world
within enterprises of business,
because it is important
new business modelsfor smallfrom
evolve and
medium-sized enterprises
recent digitization processes.to care for their
Besides the employees and to ensure
ongoing information employee satisfaction.
technologies in the world This paper aims
of business, it isatimportant
assessingfor
thesmall
influence
and
of digitization on
medium-sized employeetosatisfaction
enterprises care for theirinemployees
small and medium-sized companies.
and to ensure employee This paperThis
satisfaction. is based onaims
paper qualitative empirical
at assessing research
the influence
with focus on expert
of digitization interviews.
on employee The transcribed
satisfaction expert
in small and interviews were
medium-sized evaluated
companies. Thisusing
paperthe
is Grounded Theory approach.
based on qualitative empiricalGrounded
research
Theory
with is aon
focus method
expert that is particularly
interviews. suitable for
The transcribed theory
expert buildingwere
interviews and evaluated
for identification
using theofGrounded
new and Theory
unknown relationships.
approach. The
Grounded
objective
Theory is of this study
a method is to
that provide recommendations
is particularly for small
suitable for theory and medium-sized
building enterprises
and for identification regarding
of new when they
and unknown face increasing
relationships. The
challenges
objective ofasthis
a result
study isof to
volatile
providemarket environments
recommendations forand versatile
small digitization processes
and medium-sized enterprisestoregarding
ensure employee
when theysatisfaction. Our
face increasing
study identifies
challenges as a emerging factors which
result of volatile marketinfluence employee
environments and satisfaction.
versatile digitization processes to ensure employee satisfaction. Our
© 2021
study The Authors.
identifies emergingPublished
factorsby ELSEVIER
which influenceB.V.
employee satisfaction.
© 2021
This is anThe
openAuthors. Published
accessPublished by Elsevier
article under B.V.
the CC BY-NC-ND
© 2021 The Authors. by ELSEVIER B.V. license (https://creativecommons.org/licenses/by-nc-nd/4.0)
This is an
Peer-review open access
under article
responsibilityunder the CC BY-NC-ND
of the scientific committeelicense (https://creativecommons.org/licenses/by-nc-nd/4.0)
of KES International
This is an open
Peer-review access
under article under
responsibility of theCC BY-NC-ND
scientific license
committee of(https://creativecommons.org/licenses/by-nc-nd/4.0)
KES International.
Keywords:
Peer-review Digitization; Digital Transformation;
under responsibility Role ofcommittee
of the scientific Leadership;ofSatisfaction of Employees; Job Satisfaction; Impact of Working Conditions;
KES International
Business Environment
Keywords: Digitization; Digital Transformation; Role of Leadership; Satisfaction of Employees; Job Satisfaction; Impact of Working Conditions;
Business Environment

1. Introduction
1. Introduction
Nowadays, technological changes increasingly impact nearly every aspect of societies. The digital transformation
going along with
Nowadays, development
technological and introduction
changes increasinglyofimpact
new technologies
nearly every exerts
aspectanof extensive impact
societies. The on the
digital digitization
transformation
processes
going of with
along smalldevelopment
and medium-sized enterprises.of
and introduction These
new corresponding changes
technologies exerts an and developments
extensive require
impact on significant
the digitization
processes of small and medium-sized enterprises. These corresponding changes and developments require significant

* Corresponding author email address: joerg.bueechl@hs-aalen.de

*Corresponding author email address: joerg.bueechl@hs-aalen.de
1877-0509 © 2021 The Authors. Published by ELSEVIER B.V.
This is an open
1877-0509 access
© 2021 Thearticle under
Authors. the CC BY-NC-ND
Published by ELSEVIER license
B.V.(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under
This is an open responsibility
access of the
article under the scientific
CC BY-NC-NDcommittee of KES
license International
(https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of KES International

1877-0509 © 2021 The Authors. Published by Elsevier B.V.

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of KES International.
10.1016/j.procs.2021.09.045
2754 Joerg Bueechl et al. / Procedia Computer Science 192 (2021) 2753–2760
2 Bueechl, Härting, Schröder / Procedia Computer Science 00 (2021) 000–000

implementation efforts in the long term.[1] As a result, traditional business models need to be refined and new business
models and processes need to be developed to sustain organizations’ competitive advantage.[2] In this vein, a sound
management of the factors of production is key to sustain an organization’s profitability.[3] Hereby, job satisfaction
is one of the key predictors for organizational effectiveness.[4] Accordingly, the construct of job satisfaction has
attracted a wide attention by researchers for several decades.[3] In this context, satisfaction represents less of a
behavior than an attitude within an organization.[4] Many definitions exist for the construct of job satisfaction or
employee satisfaction. Locke’s definition is considered as one of the most predominant ones. Locke (1969) defines
job satisfaction as “the pleasurable emotional state resulting from the appraisal of one’s job as achieving or facilitating
the achievement of one’s job values.”(p.316).[5] Job satisfaction can be understood as a variety of psychological,
physiological and environmental factors, which lead employees to the conclusion that they are truly satisfied with their
job [6] In contrast, Locke describes job dissatisfaction as an unpleasant emotional state, which is characterized as
frustrating or blocking in the context of how one values one’s own job.[5] Thus, these two constructs are a function of
the perceived relationship between the discrepancy of expectations and reality assessment. Hulin and Judge (2003)
explain that job satisfaction is expressed as a multidimensional psychological response to one’s work.[7] These
responses imply cognitive (evaluative), affective (or emotional), and behavioral components. Satisfaction is not
decisively created by monetary incentives; rather, work should be interesting and varied.[4] In addition, independent
design opportunities and access to training programs should be provided. In contrast, pronounced control and
supervision are not conducive. In order to obtain a more profound understanding of the relationship between
digitization and employee satisfaction in small and medium-sized enterprises compared to large corporations, expert
interviews were conducted with these companies and the results are presented in this paper.

2. Research Method and Data Collection

This chapter deals with the underlying empirical investigation for this paper, which is based on the foundations of
empirical qualitative social research in form of interviews. The main purpose of this essay is to examine the connection
between digitization and the impact on employee satisfaction in small and medium-sized enterprises.

2.1. Research Method

The methodological approach in this paper is based on eight steps and follows an inductive, qualitative investigation
design.[8] The research design follows the concept of Grounded Theory (GT). This theory was developed by Barney
G. Glaser and Anselm L. Strauss as an analytical method and has become a standard in empirical qualitative research.
Grounded Theory aims at developing new theory by analyzing interviews, observations and other empirical data.
Hereby, it is crucial to specify the selection criteria for group experts. As the study of this paper focuses on small and
medium-sized enterprises, respondents were selected who are currently working in a company with mainly 100 to 500
employees. Only two companies out of our sample (n=14) have more than 500 but less than 2.500 employees. To
specifically query the corresponding subjective perceptions of the interviewees with focus on pandemic-induced
effects on the company, a semi-structured interview design was chosen, which provides a deeper insight into the
interviewees’ own experiences and emotions. [9]
An iterative process of data collection and analysis lead to the development of categories. In a next step, the
relationships of the categories were illuminated, which again resulted in theory building.
 Joerg Bueechl et al. / Procedia Computer Science 192 (2021) 2753–2760 2755
Bueechl, Härting, Schröder / Procedia Computer Science 00 (2021) 000–000 3

Fig. 1. Methodological Approach.

2.2. Data Collection

The qualitative study was carried out through a semi-structured interview design. The semi-structured interview is
a survey technique in the field of qualitative empirical social research. Hereby, the questions are predetermined, but
leave enough room for open responses. [10] There were specific selection criteria for the participants in this study. As
already mentioned before, with two exceptions, experts from small and medium-sized enterprises ranging from 100 to
500 employees have been interviewed. [11] In addition, employees have been selected who are familiar with the topic
of digitization. This approach should ensure that all interviewees had sufficient knowledge about the different
technologies and applications of digitization. Furthermore, demographics as well as details about work experience and
job description were assessed. After defining the selection criteria, the process of identifying potential interview
partners was initiated. The identification process was primarily enabled by the professional network of the participating
researchers as well as through business portals such as Xing or LinkedIn. Overall, we successfully acquired eleven
interviewees who matched our criteria. The following illustration presents the relevant information of the interviewees.
To ensure anonymity, the names were changed.

Table 1. Information of the Interviewees.

Pseudonym Age Job Position Industry
Julian 42 Inside Sales IT
Max 34 CEO Real Estate
Annika 23 Human Resources Manager Steel Company
Phillip 26 Marketing Manager Hotel Industry
Leonie 27 Marketing Manager Electricity Distributor
Helmut 55 CEO Hotel Industry
Christopher 26 Marketing Manager IT
Maja 24 Member of Management Board Real Estate
Leon 30 Apprentice Real Estate
Hannah 29 Marketing Manager Electricity Distributor
2756 Joerg Bueechl et al. / Procedia Computer Science 192 (2021) 2753–2760
4 Bueechl, Härting, Schröder / Procedia Computer Science 00 (2021) 000–000

Franziska 40 Marketing Manager IT

Peter 41 Board Director Hotel Industry
Sophie 35 Industrial Sales Representative Mechanical Engineering
Frank 40 CEO Laser Development

Respondents were informed about the objective and contents of the study and were interviewed at their companies,
located in southern Germany (Stuttgart, Augsburg, Aalen etc.). The interviews were recorded and lasted between 15
and 35 minutes. It was also clarified that the recordings and statements of the interviewees will be treated strictly
confidential.

2.3. Data Analysis

In the context of data analysis, the accurate transcription of the various interviews plays an important role at the
beginning of the evaluation [13]. In the context of this study, the interviews were recorded by voice memo and then
transcribed step by step in a Word document. After all interviews were completely transcribed, a more precise analysis
of the statements was conducted. Therefore, the methodology of the Grounded Theory (GT) was chosen under
consideration of coding. Coding is about clustering the collected data into different subjects to simplify the evaluation
of the results. Specifically, the coding process follows three different analysis phases:

• Open coding
• Axial coding
• Selective coding

During the open coding process, the most relevant text passages were marked, and the first important characteristics
of this study were identified. Subsequently, in axial coding, the various characteristics were assigned to categories.
For example, the following categories were formed: process optimization, digital products, data protection or paperless
communication. In the last step of the coding process, the most important characteristics from the interviews were
classified into the three core areas of digitization, employee satisfaction and organization.
The following terms were assigned to digitization: process optimization, data protection, IT-staff and simplification
of work. With regards to employee satisfaction, the following terms could be identified: staff training, work-life-
balance and employee determination. The organization was differentiated into larger companies and small and
medium-sized enterprises. In contrast to large enterprises, small and medium-sized enterprises are characterized by
employee determination, less budget and bottom-up management. In the following chapter, the results of the survey
will be presented in more detail.

3. Results

After performing open, axial and selective coding, hypotheses were developed, followed by the derivation of a
conceptual model based on ten items (see table 2) and five aggregated constructs (acceptance and chances of digital
technologies, risk of digital technologies, core drivers of digitization, improves work-life-balance of digital
technologies and influence on employee satisfaction), which represent the relationship between digitization and
employee satisfaction. Hypotheses that showed only weak or no relation between digitization and employee
satisfaction were deleted after selective coding procedure.

Table 2. Constructs and Items of the Conceptual Model.

Construct Hypothesis Items
SMEs already use digital technologies
Acceptance & Changes of H1
à still space for improvements
Digital Technologies
H2 Digital technologies offer opportunities
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Bueechl, Härting, Schröder / Procedia Computer Science 00 (2021) 000–000 5

à faster workflow & process optimization

Risk of Digital Technologies
Core Drivers of Digitization
Young employees have different attitude
H3
à open to digitization & new technologies
Data protection and the new regulations
H4
à pose great dangers in digitization
Cybercrime and hacker attacks
H5
à increasing risks of digitization
Knowledge transfer of individual people
H6
à no agreement of the respective person
SMEs have flat hierarchies
H7
à decision can be made faster
Introduction of new products = cost-benefit use
H8
à budget smaller in SMEs

Improved Work-Life-Balance of Work-Life-Balance (Flextime & Home Office)

H9
Digital Technologies à increasing employee satisfaction
Employee satisfaction is related to various aspects
Influence of Employee
H10 à field of work, management, payment &
Satisfaction
colleagues

3.1. Acceptance and Chances of Digital Technologies

Twelve out of fourteen experts argue that digital technologies are already used in small and medium-sized
enterprises. Examples are cloud solutions or various software products in administration. In addition, hardware such
as notebooks or tablets are being used. Nevertheless, there is still room for improvement in the use of other
technologies. Annika argued:
"Well, we only work with notebooks now, although it is already the case with us companies that we still work in a
very old-fashioned way. But I think we could do more.”

Leon explains the statement:

"Our invoices are kept digitally. All the documents that are actually on my desk are no longer there, because they
go directly into a structured filing system and I just have to search digitally on the cloud".

In addition, all interviewees reported that digitization has made work much easier and led to process optimization
within administrative work. The same work can be processed at a faster rate. Moritz also confirms this statement:
"The cooperation between our PM (Property Management) and our accounting department is simplified.
Everything, actually. Every file search is simplified. You can also access other files across departments. I see that
as a distinct advantage."

Old practices have been revised and digital technologies have changed the world of work. Nine out of 14
participants in the interviews noted that young employees in particular have a positive attitude towards digital
technologies. The advantages, such as higher productivity, have a positive impact on employees towards digital
innovations. Christopher gives an example concerning the use of digital technologies:
“A knowledge advantage is created for the younger generation. Because they have grown up with products such
as smartphones or internet, it is easier for them to keep up with the 7 changes. Someone who is still used to working
offline may find it harder to understand the processes. It will also be harder to use the digital products.”
2758 Joerg Bueechl et al. / Procedia Computer Science 192 (2021) 2753–2760
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3.2. Risk of Digital Technologies

Respondents commented in detail on the risks of digitization. The socio-political issue of security plays a role in
small and medium-sized enterprises. 50 percent of those surveyed are skeptical of the use of digital technologies with
regards to data protection and regulations. In addition, the concerns of the respondents regarding cyber-crime and
hacker attacks on small and medium-sized enterprises also contribute to these preoccupations. Furthermore, Franziska
in particular comments on the greater transparency resulting from digitization. Her own thoughts and knowledge can
be passed on through digital products without her consent:
„A negative aspect is, that it is transparent for the employee and that they disclose the knowledge, they have
acquired.”

3.3. Core Drivers of Digitization

The interview partners described the IT department or the management as the core driver of digitization. Often the
employees can voice their opinions and expectations, but it is the departments that are responsible for implementation.
Max, as managing director of a small and medium-sized enterprise, explains the situation as follows:
"I am also pleased when an employee does something on his own initiative or comes up to present something."
"These were mostly executives."

The respondents commented particularly on organizational structures. The flat hierarchical structures in small and
medium-sized enterprises result in faster implementation of decisions than in corporate group settings. The majority
of the respondents indicated that less budget is available for digitization in small and medium-sized enterprises than
in large companies. Therefore, the costs and benefits must be juxtaposed in each case. Thus, Christopher comes to the
following conclusion:
„SMEs often do not have the same opportunities as large companies. The budget is more important in SMEs. It will
be harder to implement something, integrate something new or develop new processes."

3.4. Improved Work-Life-Balance

Work-life-balance issues play a decisive role in the positive impact of employee satisfaction. Digital technologies
can be used to develop flexible forms of work, such as telework settings. Moritz stated the following in the interview:
„Flexible working and working from home are positive aspects. If digitization is right, you can actually work from
anywhere in the world, so home office would be a new possibility".

Christopher from the IT industry appeals, however, that every employee should be granted the decision of working
from home.
„I think it's very important to let employees decide for themselves when they want to work from home."

From the constructs discussed, it is evident that the influences on employee satisfaction can vary widely, which
required a differentiated investigation and assessment. Ten out of 14 respondents mentioned other aspects in addition
to digital technologies as an influence on employee satisfaction: management culture, the work area, pay and the
relationship between colleagues. Although digital technologies do influence employee satisfaction, they are not the
only feature. Managers or the HR department should take this into account in their daily work in small and medium-
sized enterprises.

3.5. The Conceptual Model

After data has been analyzed with the help of Grounded Theory method, the items have been aggregated to five
constructs, culminating in a conceptual model as shown in figure 2. This model represents the chains of influence
might be a starting point for further surveys.
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Joerg Bueechl et al. / Procedia Computer Science 192 (2021) 2753–2760 2759

Fig. 2. Conceptual Model.

4. Recommendations for Action

The following recommendations for small and medium-sized enterprises can be derived from the results (see
chapter 3). Digitization is a process that affects employees directly. Consequently, it is important to involve the
employees in the digitization process on the one hand and to have consideration for possible fears and preoccupations
on the other hand. The results of the interviews show that particularly data protection is a significant concern for the
interviewees nowadays. It is seen as a risk in relation to the implementation of digital technologies in enterprises.
Consequently, it is recommended to address the topic of data protection openly. In addition, especially employees with
higher seniority might experience more difficulties in the application of new technologies. It is therefore recommended
to provide trainings for specific employee groups. Another decisive recommendation for action is a smooth
implementation of digital technologies within companies. If there are any difficulties or misunderstandings in applying
specific digital tools, it is possible that employees are irritated and dissatisfied quickly. Assuming the process of
digitization implementation is driven by the management, it is mandatory that the management is acting as a role
model for the employees. For this reason, management has to play a pioneering role in using digital processes and
products themselves. Moreover, when introducing digital technologies in medium-sized companies, the budget plays
a major role. Therefore, it is necessary to carry out a through cost/benefit analysis before launching new digital tools.
Moreover, digitization is a growing process, so these analyses have to be carried out continuously. In addition, it is
imperative that digital products are up to date.

5. Conclusion

Using the data evaluation Grounded Theory, we developed a model, which indicates the relationship between
employee satisfaction and digitization in small and medium-sized enterprises. For this reason, a semi-structured
interview guide was developed to collect empirical data from experts. As a result, five main influencing determinants
have been identified: acceptance and changes of digital technologies, risk of digital technologies, core drivers of
digitization, improved work-life-balance of digital technologies and influence on employee satisfaction. It can be
assumed that there is not only a one-dimensional correlation between the level of digitization and employee
satisfaction. Other factors and reasons are also decisive for employee satisfaction in the organization. Based on the
results in chapter 3, managerial implications for small and medium-sized enterprises have been developed and
presented. The research findings might be beneficial for small and medium-sized enterprises, particularly in the process
of digitization. It also helps companies to avoid risks and make employees more aware of and open towards new
technologies.
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The qualitative study also reveals a number of limitations. The first limitation is that only twelve experts from small
and medium-sized enterprises have been interviewed and the results are only meaningful to a limited extent. Two
experts have been interviewed from larger medium-sized companies which exceed the size of SMEs in the traditional
sense. It is not possible to interview all relevant persons in order to assume a representative or a complete result. In
this context, the age of the experts must also be mentioned, which can certainly have an influence on their perceptions
and the respective statements. A further bias might come up from the interview context. Sometimes, the experts have
been given support with the questions. In order to explore the hypothesis model and the hypotheses in more detail and
to check their accuracy, it is recommended to follow-up with a quantitative research. Therefore, with responses of a
larger number of experts, the validity of the study could be tested. Consequently, the correlation between digitization
and employee satisfaction can be determined with more accuracy.

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