An Examination of the Impact of Digital Transformation on Small to Medium-Sized Enterprises (SMEs) in The Philippines through Literature Review: Opportunities, Challenges, and Implications

ABSTRACT

This study employs an integrated literature analysis to critically examine the intersections among Digital Transformation, Small and Medium Enterprises (SMEs), Developing Economies, and Technological Advancements. Recognizing the profound impact these variables have on each other, the study aims to explore how digital transformation acts as a catalyst for growth and innovation, particularly in SMEs and developing economies. It delves into how technological advancements like Artificial Intelligence, Blockchain, and the Internet of Things are shaping business strategies and economic policies. The analysis reveals that while digital transformation offers unprecedented opportunities for growth and efficiency, it also poses challenges including economic disparity, job displacement, and ethical concerns. Special attention is given to the unique challenges and opportunities that SMEs in developing economies face in this digital era. The study finds that strategic adoption of technology, guided by ethical considerations, is crucial for sustainable growth. Interdisciplinary approaches combining technical, ethical, and economic perspectives are recommended for stakeholders ranging from students and educators to professionals and policymakers. Overall, the study provides a comprehensive framework for understanding and navigating the complex interplay among these critical variables.

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