Barriers to Digital Transformation: A Classification Based on Literature

Abstract

The study aims to conduct a review of the current literature on barriers to digital transformation in the MSME sector. Furthermore, it tries to systematically identify, classify, and prioritize the barriers to digital transformation in the business value chain by synthesizing insights from existing academic literature. Based on the literature reviewed, six areas /departments were found: technology, strategy, finance, organisation, human resource, and others. We have depicted our findings through a diagram that presents sixteen barriers to digital transformation. These barriers are subsequently categorized into technological, organizational, and environmental dimensions in line with the Technology–Organization–Environment (TOE) framework. The study also presents a frequency analysis to present the constraints that require high attention. By integrating thematic classification, visual representation, and frequency-based prioritization, this study contributes a structured and holistic perspective on digital transformation barriers in textile MSMEs. The findings are helpful for researchers and practical guidance for policymakers. This study contributes by providing an understanding of barriers to digital transformation to help improve the success of digital transformation efforts.