Digitalization has become a strategic necessity for Micro, Small, and Medium Enterprises (MSMEs) to maintain competitiveness amid ongoing changes in technology and consumer behavior. In Makassar, major economic city in Eastern Indonesia, medium-sized retail MSMEs face unique challenges in digitalizing their daily operations, even though basic systems such as Point of Sales (POS) are already available. This study explores why digitalization fails to form or be actualized. Using a qualitative multiple case study of three retail MSMEs in the mom and baby retail segment, this research identifies seven key barriers across main stages of affordance: Existence (Absence of Digital Growth Mindset, Reliance on Outdated Legacy Systems), Perception (Overexpectation on Digital Outcome, Owner-centric Control), and Actualization (Resistance to Change, Misalignment & Distrust with Consultants, Lack of Top Management Support). To strengthen credibility, the findings were validated using a 5-point Likert survey involving 93 respondents from across stakeholder groups. The study demonstrates that affordance is not merely about system availability, but about how users engage with, interpret, and enact digital tools within their organizational context.
Muhammad et al. (Thu,) studied this question.
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