Exploring the Role of Digital Tools in Enhancing Innovation and Competitiveness Among Micro-Enterprises in Malaysia

Abstract

Digital transformation has emerged as a critical driver of economic growth, yet marginalised micro-enterprises often face significant barriers to adopting digital tools. This study explores the readiness of marginalised micro-enterprises in Malaysia for digital transformation, with a focus on identifying key challenges, enablers, and their implications for innovation and growth. Adopting a qualitative research approach, data were collected through semi-structured interviews with micro-entrepreneurs across diverse sectors. Thematic analysis revealed recurring barriers, including limited access to digital infrastructure, lack of technical skills, and resource constraints. Conversely, factors such as government support programs, peer networks, and mobile technology were identified as key enablers. The findings underscore the importance of tailored capacity-building initiatives and policy interventions to bridge the digital divide. This study contributes to the growing body of knowledge on digital transformation by offering practical insights into the unique needs of marginalised enterprises and strategies to foster their inclusion in the digital economy.