TECHNOLOGY ADAPTABILITY AND DIGITAL TRANSFORMATION AMONG SMALL AND MEDIUM ENTERPRISES IN UGANDA

Digital transformation has become an important driver of business competitiveness, operational efficiency, innovation and sustainable enterprise development. For small and medium enterprises (SMEs) in developing economies such as Uganda, the capacity to adapt to emerging technologies is increasingly important for business survival and participation in the digital economy. However, despite the expansion of mobile telecommunications, digital financial services, electronic commerce and government-supported digitalisation initiatives, many Ugandan SMEs continue to experience difficulties in integrating digital technologies into their business operations. This integrative critical literature review examines the relationship between technology adaptability and digital transformation among SMEs in Uganda, focusing on technological readiness, organisational capabilities, managerial competencies, financial resources, institutional support and environmental influences. The review draws on established theoretical and empirical literature, including the Technology–Organisation– Environment framework, Technology Acceptance Model, Diffusion of Innovations theory, Dynamic Capabilities theory and Resource-Based View. It critically examines the extent to which these frameworks explain technology adoption and sustained digital transformation within resourceconstrained enterprise environments. The synthesis identifies interconnected barriers involving inadequate digital competencies, limited access to affordable financing, infrastructure constraints, cybersecurity concerns, organisational resistance and uneven access to digital markets. It further highlights opportunities associated with mobile money, cloud computing, digital marketing, electronic payment systems, enterprise management applications and emerging artificial intelligence technologies. The review argues that technology adaptability should be understood not simply as the willingness to adopt technological innovations but as a multidimensional organisational capability involving continuous learning, strategic flexibility, technological integration and institutional responsiveness. It concludes that successful digital transformation among Ugandan SMEs depends on the interaction of internal enterprise capabilities and supportive external conditions.