Sector-Specific Digital Adoption in Retail, Manufacturing, and Service SMEs
DOI:
https://doi.org/10.63282/3117-5481/AIJCST-V8I1P103Keywords:
Digital Adoption, Small and Medium-Sized Enterprises (Smes), Sector-Specific Analysis, Retail Smes, Manufacturing Smes, Service Smes, Digital Transformation, Operational Efficiency, Customer Engagement, Business Performance, Technology Adoption, Digital ChallengesAbstract
This study examines sector-specific patterns of digital adoption among small and medium-sized enterprises (SMEs) in the retail, manufacturing, and service sectors. The purpose of the study is to analyze how digital technologies are adopted differently across sectors and to assess their impacts on operational efficiency, customer engagement, and business performance. A qualitative and descriptive methodology was employed, drawing on existing literature, industry reports, and selected case examples to compare digital tools, adoption drivers, and challenges across the three sectors. The findings reveal that retail and service SMEs demonstrate relatively high levels of digital adoption, driven by the need for customer interaction, market expansion, and service efficiency, while manufacturing SMEs adopt digital technologies more gradually due to higher costs, technical complexity, and infrastructure constraints. Across all sectors, digital adoption contributes positively to productivity, competitiveness, and scalability, though barriers such as limited digital skills, cybersecurity concerns, and financial constraints persist. The study concludes that digital transformation in SMEs is highly sector-dependent, and targeted policies, capacity-building initiatives, and sector-specific digital strategies are essential to maximize the benefits of digital adoption.
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