DIGITAL TRANSFORMATION IN SMES: STRATEGIES FOR SUSTAINABLE GROWTH IN THE POST-PANDEMIC ECONOMY

Abstract

The COVID-19 pandemic has accelerated digital transformation across all sectors, especially among small and medium enterprises (SMEs), which form the backbone of many economies, including Malaysia. This paper explores strategic approaches adopted by SMEs in leveraging digital technologies for sustainable growth in the post-pandemic era. A qualitative multiple-case study design was employed, involving six SMEs across e-commerce, logistics, manufacturing, and service sectors in Malaysia. Findings indicate that digital adoption is most successful when paired with proactive leadership, strategic investment, employee upskilling, and customer-centric innovation. However, SMEs face significant barriers including limited financial resources, talent gaps, and resistance to change. This study concludes with a strategic framework to guide SME digital transformation and proposes policy recommendations to enhance digital readiness in the SME ecosystem.