Barriers to Digital Transformation in Guangxi’s SMEs: Financial, Technological, and Cultural Challenges
DOI:
https://doi.org/10.53797/ujssh.v4i1.32.2025Keywords:
Digital transformation, SMEs, Guangxi Province, financial constraints, technological infrastructure, resistance to changeAbstract
Digital transformation has become a critical factor for business growth and sustainability in the modern era. However, small and medium-sized enterprises (SMEs) in Guangxi Province, China, face significant barriers in adopting digital technologies. Despite government initiatives and advancements in technology, many SMEs in the region remain hesitant or unable to embrace digital transformation. This paper examines the financial, technological, organizational, and external challenges hindering digitalization in Guangxi's SMEs, based on qualitative case studies of five representative companies from different industries. The findings reveal that limited financial resources, insufficient technological infrastructure, resistance to change, and inadequate policy support are key factors contributing to the digital transformation dilemma. Practical recommendations for overcoming these barriers and fostering a more conducive digital ecosystem are discussed, emphasizing the importance of tailored approaches for SMEs in less developed regions.
References
Amankwah-Amoah, J., Khan, Z., & Wood, G. (2021). COVID-19 and business failures: The paradoxes of experience, scale, and scope for SMEs. Journal of Business Research, 122, 283 289.
Baethge-Kinsky, V. (2020). The role of human capital in fostering SMEs’ digital transformation. Small Business Economics, 54(2), 345-360.
Bhuiyan, S., Sharma, A., & Talukder, M. (2024). A strategic approach to SME digital transformation: Bridging the gap between adoption and implementation. Asia Pacific Journal of Innovation and Entrepreneurship, 18(1), 29-45.
Dao, Y., & Dong, L. (2022). Internet Plus and the Digital China Initiative: Policy implications for SMEs. China Economic Journal, 15(3), 238-255.
Dibrov, A. (2015). Organizational resistance to change: A critical barrier to innovation. Journal of Organizational Change Management, 28(4), 672-684.
Gong, Y., & Ribiere, V. (2021). Driving business success through digital transformation: A process framework. Journal ofDigital Innovation, 13(2), 105-124.
Liang, Z., & Li, F. (2020). Regional disparities in China’s digital economy: Evidence from SMEs. Regional Studies, 54(8), 1097-1110.
Maghfirah, R., & Eni, H. (2024). The impact of digital infrastructure gaps on SME competitiveness in developing regions. Journal of Emerging Economies, 16(2), 56-68.
Pandya, V. (2012). Comparative analysis of development of SMEs in developed and developing countries. International Conference on Business and Management, 7, 23-32.
Su, Z., Ahlstrom, D., & Li, Y. (2022). Financial challenges for SMEs in digital transformation: An emerging market perspective. Journal of Business Venturing Insights, 18, e00354.
Ullah, F. (2019). Barriers to SME growth in developing economies: The role of digital literacy. Economic Research, 12(3), 45-67.
Veugelers, R. (2008). Policy support for SME innovation: Balancing the benefits and costs. Research Policy, 37(2), 249-263.
Vrana, G., & Singh, R. (2024). Strategic approaches to digital transformation in SMEs: Emerging trends and future directions. Digital Business Review, 10(1), 1-1
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Keting Deng, Simon C M Kwong
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
