Exploring Digital Transformation Journey Among Micro, Small-, and Medium-Sized Enterprises

Abstract

This paper aims to explore the patterns in micro, small-, and medium-sized enterprises’ (MSMEs) digital transformation journey during recent years. Using an emergent concurrent mixed-methods approach, we combined insights from six in-depth interviews with MSME managers and owners with survey data from 66 MSMEs. The findings reveal major inhibitors and accelerators of MSMEs’ digital transformation and demonstrate how they cope with them by engaging in digitalisation actions. This study also provides insights into how inhibitors, accelerators, and digitalisation actions vary across MSME sizes. While an increased adoption of digital technology was observed among the participating MSMEs, this study identifies three distinct digital transformation paths: necessary, experimental, and committed. Each path is shaped by a unique combination of inhibitors and accelerators. From the practical perspective, this research provides insights for MSME managers and owners on how to tailor their digital transformation efforts to their unique inhibitors and accelerators. In addition, our insights can help policy makers to promote the digital transformation of MSMEs through appropriate measures and support mechanisms tailored to the specific needs of smaller enterprises.