Digital Transformation of Micro, Small and Medium Enterprises (MSMEs): Drivers, Barriers, and Strategic Implications for Sustainable Growth

The digital transformation of Micro, Small and Medium Enterprises (MSMEs) has emerged as a critical determinant of competitiveness, resilience and long-term sustainability in the contemporary global economy. This paper adopts a secondary database approach to systematically review and synthesize existing empirical and theoretical contributions on the drivers, barriers, and strategic implications of digital transformation in MSMEs. The findings reveal that digital transformation is influenced by a confluence of technological readiness, market dynamics, institutional support and firm-level capabilities. However, MSMEs face structural, behavioural and infrastructural barriers that impede the adoption of digital technologies. Strategic implications underscore the need for capacity-building, innovation-oriented leadership and policy interventions aimed at fostering sustainable digital ecosystems. The synthesis presented herein offers a comprehensive conceptual grounding to inform academic discourse, managerial decision-making and policy formulation in the context of digitally enabled MSME growth.