Navigating Challenges and Overcoming Barriers: A Qualitative Study on Digital Transformation Practices Among SMEs
Melindya Ayu Tiara, Maisaroh, Gefni Yasrionengsih, Tri Lestari Wahyuning Utami, Masyithoh Annisaush Sholihah, Khoirina Noor Anindya

Department of Management, Faculty of Business and Economics, Universitas Islam Indonesia, Yogyakarta Indonesia

Abstract

The rapid advancement of technology necessitates small and medium enterprises (SMEs) to embrace digital transformation in their business processes. However, the readiness of SMEs, particularly in adopting digital sales functions, remains a critical factor in achieving successful transformation. This study investigates the challenges and barriers faced by food and beverage SMEs in implementing digital transformation. Using a qualitative descriptive approach, data were collected through in-depth interviews with SMEs operating in this sector. The data were validated using triangulation of sources, methods, and theories. The study identifies challenges like low digital literacy, limited technology access, and reliance on third-party platforms. Barriers include insufficient capital, traditional mindsets, unsupportive regulations, and competition. Technological issues, such as platform dependency and low data privacy awareness, further hinder SMEs^ digital transformation efforts. This study highlights the pressing need for strategic interventions, including capacity building, investment in infrastructure, and tailored policy support, to enable SMEs to successfully navigate the complexities of digital transformation.

Keywords: Digital Transformation, Challenges, Barrier, SMEs

Topic: Economics