Enablers, barriers, and challenges with digital technology adoption during Covid-19: Initial findings from selected Philippine MSMEs

The Covid-19 pandemic has forced Philippine micro-, small-, and medium-scale enterprises (MSMEs) to undergo some form of digitalization to survive and continue servicing clients’ needs. A big number of MSMEs failed to cope with the business-related impacts of the pandemic — 70.6% of which have decided to shut down temporarily (Shinozaki, 2020). Others were able to transition with the help of digital technologies, allowing them to withstand the pandemic’s impacts. These businesses started adopting social media and e-commerce platforms, as well as meeting with clients via virtual setups, to name a few. For this research, we identified the enablers, barriers, and challenges faced by select Philippine MSMEs as they attempted to enhance their digital capabilities. Using the multiple case study research design, we examined the narratives derived from our in-depth interviews of 12 Philippine-based MSMEs. Our initial findings show that Philippine MSMEs experienced a diverse set of enablers, barriers, and challenges during Covid-19, and that they exhibited an overall increased openness to the use of digital technologies. Finally, we present the case that MSMEs that are able to effectively address their barriers and challenges are likely to come out stronger in the post-pandemic era. Post-pandemic resilience is necessary for MSMEs to sustain business operations, withstand future shocks, and capitalize on new business opportunities.