Digital Innovation Readiness: A Qualitative Analysis of Challenges and Opportunities Among Micro, Small, and Medium Enterprises

It is important to assess the adoption of digital transformation technologies in the manufacturing sector, specifically the Micro, Small, and Medium Enterprises (MSMEs) at the National Capital Region (NCR), Philippines. The study explored factors influencing technology adoption, offering insights into how MSMEs integrate new technologies into their operations. Using a qualitative approach, in-depth interviews (IDIs) and focus group discussions (FGDs) were conducted with key informants categorized as innovators, adopters, and resistors. A Digital Framework was developed based on these findings, addressing the unique challenges MSMEs face in developing countries like the Philippines. Thematic analysis identified key factors such as workforce adaptability, business processes, time, and cost. These insights highlighted workforce skills, hiring practices, technological integration, supply chain management, quality control, waste management, innovation, and collaboration. The study also discussed strategies to overcome barriers to digital transformation. It provides recommendations for MSMEs in NCR, covering innovation boosters, drivers of innovation, and cultural resistance to change. These findings can serve as a model for other regions in the Philippines and Southeast Asia, advancing the understanding of digital transformation in the manufacturing sector.