Digital Leap or Digital Lag? How COVID-19 Reshaped Microenterprise Adoption in Malaysia’s Retail Sector

The COVID-19 pandemic disrupted traditional retail operations, forcing micro-enterprises to adopt digital tools for survival. While existing literature examines digital transformation in small and medium enterprises (SMEs), microenterprises (businesses with fewer than 10 employees) face unique challenges due to limited resources, technological literacy, and infrastructural constraints. This study investigates the digital adoption patterns of micro-retailers during the pandemic, focusing on the drivers, barriers, and sustainability of such transitions. Through content analysis of the secondary data, this paper investigates how micro-retailers leveraged low-cost digital solutions (e.g., WhatsApp Commerce, mobile payments) and assesses whether these changes were sustained post-pandemic. Findings reveal that while crisis-driven adoption was widespread, long-term digital integration remains inconsistent due to resource constraints, trust, lack of digital culture training, and cultural resistance. The paper contributes to policy discussions on supporting micro-enterprises in digital economies.