The influence of digital transformation and implementation barriers on innovation in Brazilian micro, small, and medium enterprises

This study aims to analyze the influence of digital transformation on innovation and the moderating role of barriers to digitalization in this relationship within Brazilian micro, small, and medium enterprises (MSMEs). The sample comprises 731 Brazilian MSMEs. The findings indicate that digital transformation, characterized by digitalization strategies and technology usage, has a positive and significant impact on innovation. Moreover, barriers to digitalization negatively and significantly affect the relationship between digital transformation and innovation, but this effect is observed only in medium-sized enterprises. This study contributes to strategic management practices by providing insights into the role of digital transformation in business innovation. Future research should investigate why barriers to digitalization do not consistently impact the relationship between digital transformation and innovation.