Navigating Digital Transformation and Technology Adoption: A Literature Review from Small and Medium-Sized Enterprises in Developing Countries

Abstract

This article examines digital transformation and technology adoption within small and medium-sized enterprises (SMEs) in developing countries. It focuses on identifying the mechanisms that facilitate or hinder the integration of new technologies in these contexts, often constrained by specific socioeconomic and cultural factors. The research employed a systematic literature review, adhering to a structured protocol to explore existing studies. Critical stages of this review included defining research questions, developing a comprehensive search strategy, and systematically selecting and analyzing relevant studies from significant databases. The review reveals a significant emphasis on basic information systems as the primary form of technology adoption in SMEs within developing countries, with more advanced technologies like cloud computing and artificial intelligence being less common. Factors such as the entrepreneurial ecosystem and external social influences, including government and private sector initiatives, play pivotal roles in shaping these adoption patterns. This study underscores the critical role of community-driven efforts in promoting technology adoption over initiatives by the public and private sectors. The findings suggest a need for future research to develop tailored technological adoption models that accommodate the unique challenges of SMEs in developing countries. Additionally, more inclusive approaches that consider sociocultural dynamics could further enhance the effectiveness of technology integration strategies in these regions.