Assessing small and medium enterprise digital transformation readiness in South Africa: a thematic synthesis with policy and ethical insights

Small and Medium Enterprises (SMEs) play a central role in South Africa’s economy but face significant challenges in adapting to ongoing digital transformation. While much of the global literature focuses on large firms or advanced economies, less is known about how SMEs in resource-constrained settings navigate the structural, human, and ethical demands of digitalisation. This study addresses that gap through a systematic thematic synthesis of 22 interdisciplinary and Information Systems (IS) studies. Drawing on grounded theory–inspired coding techniques, the analysis identified four interrelated dimensions shaping SME digital readiness: digital integration, workforce capabilities, policy alignment, and ethical governance. These dimensions were consolidated into the Human-Technology Impact Matrix (HTIM), a conceptual framework that maps readiness challenges along the axes of structural complexity and human-centricity. The HTIM provides both an analytical tool for researchers and a diagnostic resource for policymakers seeking to strengthen SME digital capacity in the Global South. By extending existing models of digital transformation to include ethical and developmental considerations, the study contributes to Information and Communication Technologies for Development (ICT4D) scholarship and offers actionable insights for inclusive innovation policy in South Africa and similar contexts.