Technology Integration among Micro, Small, and Medium Enterprises’ (MSMEs) Operations in Davao Oriental, Philippines

Abstract

Micro, small, and medium enterprises (MSMEs) form the backbone of local economies in the Philippines, particularly in rural provinces like Davao Oriental. However, limited evidence exists on how these enterprises integrate technology into their operations. This study explored the current state, challenges, and best practices of technology integration among 16 MSMEs in Davao Oriental using a structured survey. The results revealed that most respondents were micro-enterprises operating in the services and retail sectors, with the majority being less than three years old. Foundational digital tools such as computer systems and point-of-sale (POS) systems were widely used, while advanced technologies like cloud computing and cybersecurity were underutilized. Key challenges identified included high costs, poor internet connectivity, and limited digital literacy. MSMEs favored strategies such as training, outsourcing IT services, and hiring experts over direct government support. The study underscores the need for inclusive, sector-specific, and capacity-building interventions to bridge digital gaps. Policy recommendations include infrastructure investment, training programs, financial incentives, and public-private collaboration. These findings provide a basis for localized digital transformation policies that empower MSMEs to participate more fully in the digital economy.