Department of Management Studies, Central University of Haryana, Haryana, India.
Abstract
Digital transformation is one of the main antecedents of competitiveness, resilience, and value creation in Industry 4.0, and the adoption of digital technology among microentrepreneurs is still uneven and fragmented. This research utilises a descriptive secondary data-based research design to synthesise evidence on sectoral- and policy-level digital engagement. The secondary data reviewed are based on the Ministry of MSME, NITI Aayog, OECD, World Bank, RBI, and industry reports. The results show that the vast majority of microenterprises use only simple digital solutions, such as digital payments, communication applications, and online platforms, and are still at the initial or experimental phases of digital transformation. This paper investigates the level of digital technology adoption (DTA), its main drivers, issues, and performance requirements among the microenterprises with special reference to the Indian context. The barriers include financial constraints, lack of digital skills, poor infrastructure, risk of cyber security, and organisational resistance. Entrepreneurial orientation, perceived usefulness of technology, and external shocks, such as the COVID-19 pandemic, and targeted governmental interventions are also useful enablers. It is also through analysis that the trade-offs of platform dependence, particularly a high commission cost imposed by digital intermediaries that discourages the retention of the value, are revealed. The paper unveils three lines of digital transformation, that is, requisite, experimental, and dedicated, and that divergent sector-sensitive policy frameworks are necessary to facilitate inclusive and sustainable digital transformation among microentrepreneurs.
Keywords: Digital Transformation, Micro-Entrepreneurs, Digital Divide, Digital Transformation Paths, Business Performance
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