A Systematic Literature Review On Digital Capabilities As A Link Between Digital Transformation and MSME Competitiveness
DOI:
https://doi.org/10.59971/jumawa.v3i4.508Keywords:
Business Competitiveness, Digital Capabilities, Digital Transformation, MSMEs, Systematic Literature ReviewAbstract
Digital transformation has become a strategic agenda for micro, small, and medium enterprises (MSMEs) facing more open market competition, changing consumer behavior, and expanding platform-based business ecosystems. However, technology adoption does not automatically improve competitiveness, because MSMEs still face limited digital literacy, scarce resources, organizational readiness gaps, and uneven ecosystem support. This article synthesizes the literature on MSME digital transformation and business competitiveness. A systematic literature review was conducted on recent scholarly publications addressing MSME digitalization, digital capabilities, digital platforms, digital payments, business model innovation, and firm performance, and thematic coding was used to identify major findings, barriers, competitiveness mechanisms, and future research directions. The findings indicate that digital transformation strengthens MSME competitiveness when technology is not treated merely as a marketing tool but is integrated into organizational capabilities, knowledge management, product innovation, operational efficiency, and business networks. The study proposes a conceptual framework that positions digital capabilities as the key mechanism linking technology adoption and competitiveness. The practical implications highlight the need for continuous mentoring, digital literacy development, access to finance, and stronger digital ecosystems for MSMEs.
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