Abstract

SMEs were pushed to implement innovative procedures and transform from traditional operations into a Digital Transformation process of converting into more technologized and enhance the market needs to obtain new employment opportunities post to the covid-19 crisis, the expectations of development put the stockholders and investments under stress to adopt the new techniques of innovation to fill the market gaps and needs, keeping the low cost as the first target with quality of values in products and services at the same or better level, taking into consideration the customers' satisfaction as the main factor that affects the technology adoption, policies changing and the low-cost innovation due to the economic crisis. To take into consideration this issue, we built a conceptual framework model based on multi-model founds in different studies concerning different factors that affected the adoption, focusing on the digital transformation and had an impact on the Frugal Innovation in 50 of new established SMEs undergoing the new program adopted by SME's Society in Bahrain. The hypothesis of the adopted model will provide the relationship of some of the most founded factors affecting the Frugal Innovation Implementation, which had a link with Digital Transformation and a positive impact on Customer satisfaction, keeping in mind that the Covid-19 anxiety is considered a moderator that affected the adoption of Digital Transformation directly. To test the hypothesis, data would be collected with both Quantitative and Qualitative methods in a longitudinal study before applying the Digital transformation and after the technology adoption and expected that the data analysis will support the testing of the hypothesis.