West Science Journal Economic and Entrepreneurship
Vol. 4 No. 02 (2026): West Science Journal Economic and Entrepreneurship

Barriers and Strategies in Digital Transformation Adoption Among Small and Medium Enterprises (SMEs)

Indria Guntararayana (Ilmu Administrsi Niaga, Universitas Islam Balitar Blitar)
Djoko Surahmat (Politeknik Kelautan dan Perikanan Sidoarjo)
Monesta Cici Ijan (Sekolah Tinggi Ilmu Bisnis Kumala Nusa)
Meci Nilam Sari (STIA Adabiah Padang)
Margo Saptowinarko Prasetyo (STIE Port Numbay Jayapura)



Article Info

Publish Date
30 May 2026

Abstract

This study examines the barriers and strategies associated with digital transformation (DT) adoption among small and medium enterprises (SMEs). Despite the growing importance of digital technologies in enhancing competitiveness and resilience, many SMEs remain at early stages of digital maturity. Employing a mixed-methods approach, this research integrates quantitative data from 450 SMEs across developed, emerging, and transitional economies with qualitative insights from case studies and expert interviews. The findings reveal that internal barriers, particularly financial constraints and digital skill gaps, are the most significant impediments to DT adoption, followed by organizational inertia and external challenges such as regulatory complexity and infrastructure limitations. The results further demonstrate that targeted strategies, including government subsidies, upskilling programs, and public-private partnerships, significantly improve digital adoption levels and firm performance. Notably, SMEs that successfully implement DT strategies experience higher revenue growth and enhanced operational efficiency. By extending the Technology–Organization–Environment (TOE) framework and Diffusion of Innovations (DOI) theory, this study highlights the importance of integrated and context-specific interventions. The research offers practical and policy-relevant implications for SME stakeholders, emphasizing the need for coordinated efforts to bridge the digital divide and foster inclusive digital transformation.

Copyrights © 2026






Journal Info

Abbrev

wsee

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Economics and Entrepreneurship published since 2023 by Westscience Press. Editors receive scientific articles from research results, surveys, and literature reviews closely related to the Economics and Entrepreneurship sectors. WSJEE is a peer-reviewed and open-access scientific magazine. ...