A Framework for Digital Transformation of SMEs in South Africa (DTF4SMEs)

Small and medium-sized enterprises (SMEs) make up about 90% of businesses in the South African economy, and their profitability and sustainability have a significant impact on overall economic growth. The rapid development of digital technology offers SMEs opportunities to improve competitiveness and efficiency. Following design science research (DSR) methodology and guided by the Technology-Organisation-Environment (TOE) framework, the study aimed to answer the research question (RQ) “What are the key factors that should be considered in designing a framework to enable and guide the Digital Transformation (DT) of South African SMEs?” Through a literature review, essential components and DT challenges were identified and used to develop a first-stage framework (FSF), which was validated through interviews with SME manufacturers in Ekurhuleni, South Africa. The feedback was used to refine and update the FSF. As a practical contribution, this study proposes a Digital Transformation framework for SMEs (DTF4SMEs) that includes guidelines for strategic planning, technological integration, financial initiatives, and competency enhancement. with recommendations for policymakers, industry leaders, and SME owners. As a theoretical contribution, we address research challenges unique to South Africa, including socio-economic factors, infrastructure limitations, and regulatory complexities.