A COMPREHENSIVE EVALUATION OF DIGITAL TRANSFORMATION ACROSS MULTIPLE BUSINESS FUNCTIONS IN SOUTH AFRICAN SMMES: INSIGHTS POST-COVID-19
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Nomfundo Gladys Khoza(1*)
Department of Business Support Studies, Faculty of Management Sciences, Central University of Technology
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Walter Mthuthuzeli Mkosana(2)
Department of Business Support Studies, Faculty of Management Sciences, Central University of Technology
(*) Corresponding Author
Abstract
The digital transformation of Small, Medium, and Micro Enterprises (SMMEs) is crucial for maintaining competitiveness and ensuring long-term growth in today’s business environment. This systematic literature review evaluates how digital technologies have reshaped business functions within South African SMMEs, particularly following the COVID-19 pandemic. Articles published between 2019 and 2024 were sourced from Scopus and Web of Science, and the PRISMA framework was used for selecting and analysing relevant studies. The review assesses the current state of digital transformation, exploring its impact on marketing, operations, customer engagement, and decision-making processes. It identifies key challenges, such as resource limitations, digital skills gaps, and infrastructure constraints, which impede widespread digital adoption. Sector-specific insights are also provided, recognizing varying levels of digital maturity across industries. The findings offer actionable recommendations for SMME owners, policymakers, and educators, suggesting strategies to accelerate digital adoption. By providing valuable local data, this study adds to the growing body of research on entrepreneurship and digitalization in South Africa’s post-pandemic landscape. The study underscores the need for targeted interventions to help SMMEs overcome barriers and fully leverage technology to drive growth and innovation.
Keywords: Digital Transformation; SMMEs; South Africa; Post-COVID-19; Sectoral Analysis
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References
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Bartik, A. W., Cullen, Z. B., Glaeser, E. L., Luca, M., & Stanton, C. 2020. The Impact Of COVID-19 On Small Business Outcomes And Expectations. Proceedings Of The National Academy Of Sciences, 117(30),17656-17666. DOI: [10.1073/Pnas.2006991117]
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. 2013. Digital Business Strategy: Toward A Next Generation Of Insights. Misquarterly,37(2), Pp.471-482.
Boustan, L.P., Choi, J. And Clingingsmith, D., 2022. Automation After The Assembly Line: Computerized Machine Tools, Employment And Productivity In The United States. National Bureau Of Economic Research.
Buttle, F., And Maklan, S., 2009. Customer Relationship Management: Concepts And Technology. Sydney: A Butterworth-Heinemann Title, 72.
Cetindamar, K. D. And Abedin, B., 2021. Understanding The Role Of Employees In Digital Transformation: Conceptualization Of Digital Literacy Of Employees As A Multi-Dimensional Organizational Affordance. Journal Of Enterprise Information Management, 34(6), Pp.1649-1672.
Chaffey, D. And Ellis-Chadwick, F., 2019. Digital Marketing. Pearson Uk.
Chirra, A. A., Kahn, N., & Tyagi, S. 2020. The Impact Of Covid-19 On Small And Medium-Sized Enterprises In South Africa: An Initial Assessment. Journal Of Small Business Management, 58(1), 1-9. Doi: [10.1080/00472778.2020.1813023]
Engström, S., Hultman, J., & Gremyr, I. 2020. The Role Of Small And Medium-Sized Enterprises In Sustaining Economic Growth During COVID-19. Journal Of Business Research, 121, 173-180. DOI: [10.1016/J.Jbusres.2020.07.018]
Ghobakhloo, M. 2018. Industry 4.0, Digital Transformation, And The Role Of Smes In The Global Marketplace. International Journal Of Technology Management, Pp.77(1),29-46.
Jedynak, M., Czakon, W., Kuźniarska, A. And Mania, K., 2021. Digital Transformation Of Organizations: What Do We Know And Where To Go Next? Journal Of Organizational Change Management, 34(3), Pp.629-652.
Kane, G., 2019. The technology Fallacy: People Are The Real Key To Digital Transformation. Research-Technology Management, 62(6), Pp.44-49.
Kend, M. And Nguyen, L.A., 2022. Key Audit Risks And Audit Procedures During The Initial Year Of The COVID-19 Pandemic: An Analysis Of Audit Reports 2019-2020. Managerial Auditing Journal,37(7), Pp.798-818.
Kervinen, S., 2021. Making Sense Of The Future–Sensemaking And Sensegiving Efforts Of Management Consultancies During COVID-19 Pandemic (Master's Thesis).
Kirby, A. 2023. Exploratory Bibliometrics: Using Vosviewer As A Preliminary Research Tool. Publications, 11(1), 10.
Kraus, S., Palmer, R., Kearney, S., & Crouser, S. 2021. Digital Transformation In Smes: The Role Of Managerial Capabilities. International Journal Of Entrepreneurial Behavior & Research, 27(4), 981-996.DOI: [10.1108/IJEBR-09-2020-0452]
Kumar, S., & Hsiao, M. 2020. The impact of COVID-19 On Small And Medium Enterprises: Evidence From South Africa. South African Journal Of Economic And Management Sciences, 23(1), 1-10. DOI: [10.4102/Sajems.V23i1.3563]
Lemon, K.N. And Verhoef, P.C., 2016. Understanding Customer Experience Throughout The Customer Journey. Journal Of Marketing, 80(6), Pp.69-96.
Mabulele, R., 2020. Assessing Technological Challenges In Black-Owned Smmes In Selected Provinces In South Africa (Doctoral Dissertation, North-West University (South Africa).
Meyer, I., & Hsiao, M. 2020. The Role Of Digitalization In Innovation And Entrepreneurship During COVID-19.Journal Of Business Research, Pp.118,116-125.
Murakami, Y., Wu, J., & Kurioka, S. (2025). Relationship Between Aloneliness And Harsh Supervisory Behavior Among Small And Medium-Sized Enterprise Owners In Japan. Journal of Management: Small and Medium Enterprises (SMEs), 18(1), 1-10.
Nicolas, J., Biswas, S. And Torrance, M. 2021. ‘Digital Transformation In South Africa: A Sector Perspective’, South African Journal Of Business Management, 52(1).
Page, M. J., Mckenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., ... & Moher, D. 2021. The PRISMA 2020 Statement: An Updated Guideline For Reporting Systematic Reviews. Bmj, 372.
Pedron, Z., 2022. Small Businesses To Overcome Skill Shortages And Talent Mismatches. In Small Business Management And Control Of The Uncertain External Environment (Pp. 111-135). Emerald Publishing Limited.
Saley, A., Digital Skills Development At A Global Assurance, Tax And Advisory Consulting Firm In South Africa.
Teece, D. J., Pisano, G., & Shuen, A. 1997. Dynamic Capabilities And Strategic Management. Strategic Management Journal, 18(7), 509-533.
Van Der Merwe, C., & Geyer, M. 2021. Barriers To Digital Transformation In South African Smes. South African Journal Of Business Management, 52(1), Pp.1-12.
Wamba, S.F., Gunasekaran, A., Akter, S., Ren, S.J.F., Dubey, R. And Childe, S.J., 2017. Big Data Analytics And Firm Performance: Effects Of Dynamic Capabilities. Journal Of Business Research, 70, Pp.356-365.
Winkler, V. J., & Jablonski, J. 2021. Strategies for digital transformation in small and medium enterprises in the post-pandemic era. Journal of Small Business Management, 59(4), 1-15. DOI: [10.1080/00472778.2021.1896672]
Published
2025-07-02
How to Cite
Khoza, N., & Mkosana, W. (2025). A COMPREHENSIVE EVALUATION OF DIGITAL TRANSFORMATION ACROSS MULTIPLE BUSINESS FUNCTIONS IN SOUTH AFRICAN SMMES: INSIGHTS POST-COVID-19. Journal of Management : Small and Medium Enterprises (SMEs), 18(2), 953-966. https://doi.org/10.35508/jom.v18i2.20824
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Articles
