A Literature Driven Analysis of Barriers and Enablers of Digital Adoption in Pakistani SMEs

Abstract

Since this is a literature-based qualitative study, this paper examines the drivers of digital adoption among Pakistani SMEs. The research creates gaps because the Technology Acceptance Model (TAM), Technology Organization Environment (TOE), and Resource Dependency Theory (RDT) have been incorporated into the study. It provides a holistic explanation of the issues of digital adoption. The published literature on the topic (2021-2025) has been reviewed thematically to disclose that there are three groups of major determinants: • Behavioral factors (TAM): The ones that have a significant impact on the intentions to adopt are the perceived ease of use, perceived usefulness, and perceived managerial awareness. • Organizational/technological preparedness (TOE): low digital skills, inadequate infrastructure, and finances are barriers to the adoption. • Environmental/resource/pressures (RDT): environmental pressures on the competitor, customer expectations, government support, and dependence on external vendors are factors that impact the adoption decision. • This has been mentioned as one of the significant gaps where there are no Pakistani studies that incorporate TAM, TOE, and RDT, and thus, a requirement to incorporate the structures of these in the forthcoming research. The project suggests capacity-building initiatives, improved organizational planning, and policy support to enhance SME digital preparedness. Overall, the study provides a systematic context for research on SME transformation in the digital age and paves the way for future phases of empirical research.