AI-Driven Supply Chain Innovation in Developing Economies: A Desk Review of Zimbabwe’s SME Digitalization Challenges

Small and medium-sized enterprises (SMEs) in Zimbabwe face significant challenges in adopting Artificial Intelligence (AI) technologies for supply chain innovation. This research examines the digitalization barriers confronting Zimbabwe’s SME sector within the context of the country’s developing economy. The study employs a comprehensive desk review methodology analysing recent data from international organizations, government reports, and peer-reviewed academic sources. Zimbabwe’s 3.4 million MSMEs contribute approximately $8.6 billion to the national GDP. However, these enterprises encounter multiple obstacles in digital transformation. The research reveals that 43% of surveyed businesses operate informally, limiting their access to formal digital solutions. Despite 94% mobile penetration rates, actual digital adoption remains low due to infrastructure constraints and limited technological capabilities. Key findings indicate that financial constraints, skills shortages, unreliable suppliers, and information security concerns significantly impact SME performance. The study identifies that firms with strong technological capabilities demonstrate better supply chain risk management. Government initiatives through the National Development Strategy 1 (2021-2025) emphasize digital transformation, yet implementation gaps persist. The research contributes to understanding AI-driven supply chain innovation challenges in developing economies. Findings suggest that coordinated policy interventions, infrastructure development, and capacity building programs are essential for successful SME digitalization. The study recommends establishing multi-stakeholder coordination mechanisms, improving digital skills training, and developing supportive regulatory frameworks. These insights inform policy makers, development practitioners, and SME stakeholders working toward enhanced competitiveness in Zimbabwe’s digital economy transformation.