Challenges of Digital Transformation: A Human-centred Perspective on Technology Adoption in Tourism Micro-Entrepreneurship

Abstract

This study explores the digital transformation challenges faced by micro-entrepreneurs in the tourism and hospitality sector, offering a unique focus on their specific needs and constraints. Grounded in theoretical foundations that integrate Innovation Diffusion Theory and Dynamic Capabilities Theory, the research provides a nuanced understanding of how structural and contextual dimensions shape microentrepreneurial agency and capacity. Using purposive sampling, qualitative data were collected from 18 micro-entrepreneurs across four key tourism states in Malaysia. The analysis reveals five key barriers to digital transformation: financial constraints, limited human resources, gaps in digital literacy and skills, technological limitations, and challenges in managing customer interactions. To address these issues, the research recommends a strategic approach involving affordable, scalable digital tools, financial support mechanisms, and tailored training programmes. The study highlights the benefits of collaborative models, community-based learning, and active participation in local business associations, fostering resource-sharing, knowledge exchange, and networking opportunities.