Castro, JoãoFernandes, Mafalda Maria Abrunhosa De Brito Malheiro2022-05-312022-05-312022-01-252021-12-17http://hdl.handle.net/10362/139044The digital Transformation has revolutionized entire sectors in recent years. Yet, SMEs struggle to successfully implement such profound organizational transformation and thus jeopardize their competitiveness in the long term. Scholars study internal, company-related factors almost exclusively, whereas external factors are only sparsely considered. There fore ,this thesis applies the PESTE-framework to investigate external factors affecting the digital transformation of Portuguese SMEs. This section explores political aspects in Portugal, comparing them to Italy and Israel and analyzing possible influence on SMEs’ digital transformation. Based on these findings, recommendations were developed, including interdisciplinary data collection processes, innovation hubs, tailored trainings, and trust seals.engDigital transformationSmesPortugalExternal factorsPeste-analysisPolitical factormaster thesis202974030