The impact of digital transformation on small and medium enterprises (SMEs) in emerging economies
TL;DR
The findings indicate that e-commerce, cloud computing, customer relationship management, and digital marketing tools supported operational coordination, market reach, and customer engagement, but limited digital skills, implementation costs, cybersecurity risks, and infrastructure constraints restricted deeper adoption.
Abstract
Digital transformation shapes the competitiveness of small and medium enterprises (SMEs) in emerging economies. This study examines digital technology adoption, perceived benefits, and implementation barriers among SMEs in India, Brazil, and South Africa. A qualitative multiple-case design was employed, based on 800 semi-structured interviews with SME owners, managers, and key decision-makers. A common interview guide was used across the countries, and data were organised in NVivo and analysed through thematic coding. The findings indicate that e-commerce, cloud computing, customer relationship management, and digital marketing tools supported operational coordination, market reach, and customer engagement. However, limited digital skills, implementation costs, cybersecurity risks, and infrastructure constraints restricted deeper adoption. Integrating the Technology-Organization-Environment framework with the Resource-Based View, the study shows that digital transformation outcomes depend on the alignment of technological access, organisational capabilities, and external institutional support. The study provides comparative evidence and policy implications for strengthening SME digitalisation in emerging economies.