Digital Transformation Through Virtual Value Chains: An Exploratory Study of Grocery MSEs in Mexico

This study explores the readiness of Micro and Small Enterprises (MSEs) in Mexico, specifically grocery stores, to implement the Virtual Value Chain (VVC) through Information and Communication Technologies for Development (ICT4D). A mixed-methods approach was used, combining diagnostic tools, structured surveys, and interviews. Quantitative data were analyzed using descriptive statistics, correlation analysis, and machine learning to identify digital adoption patterns. The results indicate that limited technology adoption remains the main obstacle to VVC integration. Significant associations were found between digital engagement and the age and educational level of store managers. Key digital gaps persist in inventory control, supplier coordination, and demand forecasting. Although machine learning models did not significantly outperform baseline predictions on willingness to adopt technology, the findings emphasize the potential of targeted training and accessible mobile solutions. The study proposes a new diagnostic and predictive framework to assess VVC readiness in low-resource contexts. It shows that ICT, when strategically aligned with business operations and paired with adequate training, can enhance sustainability and livelihoods. Although the study is limited to one geographic area and one business sector, it offers a foundation for scaling similar initiatives. The findings support context-sensitive strategies and capacity-building efforts tailored to the realities of MSEs in emerging economies.