Abstract
Digitalisation has become a key component of modern businesses, which significantly impacts their operations, competitiveness, and growth. SMEs are recognised as a major contributor to economic growth and expansion, creating jobs and driving innovation and new business creation (Maga & Modiba 2022). Digital transformation provides opportunities and challenges for existing businesses to maintain a competitive edge (Azevedo & Almeida, 2021). However, the extent and rate at which SMEs adopt digital technology vary significantly (Bhardwaj, Garg & Gajpal, 2021; Shahadat et al, 2023; Ta & Lin, 2023).
This study examines the factors influencing the variations in digital technology adoption by SMEs and the reasons for these variations. It will also identify the internal and external barriers affecting digital technology adoption. Finally, it will recommend strategies and policy interventions aimed at promoting digital technology adoption by SMEs.