Enablers and benefits of supply chain digitalization: An empirical study of Thai MSMEs

Supply chain digitalization is increasingly critical to the competitiveness of micro, small, and medium enterprises (MSMEs). However, knowledge about it, including the technologies, enablers, and benefits from the perspective of these enterprises is limited, particularly in developing economies. Addressing this knowledge gap is essential, as around 95% of enterprises in these economies are MSMEs. This study aims to bridge this gap using Thailand as a developing economy case study, gathering relevant information through a survey (with 574 responses) and semi-structured interviews. The findings reveal that most Thai MSMEs use basic digital tools, while the adoption of intermediate and advanced technologies is moderate and low respectively. Consumer and competitor pressures primarily drive digitalization efforts, with the government playing a somewhat limited role. These (digitalization) efforts were found to have accelerated during the COVID-19 pandemic, despite budgetary constraints. From a benefits perspective, digitalization was found to improve business processes and enhance sales and customer satisfaction. These findings offer insights for emerging economy practitioners and policymakers to develop suitable policy interventions and support mechanisms for MSME digitalization. This study makes a novel and significant contribution to the literature, as no previous studies have comprehensively investigated digitalization in emerging economies or in Thailand.