Exploring the Impact of Digital Skills on Innovation in Hospitality SMMEs in the Free State Province: A Systematic Review
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Abstract
Digital transformation is increasingly recognised as a driver of innovation and competitiveness in Small, Medium, and Micro Enterprises (SMMEs). In South Africa’s Free State Province, hospitality SMMEs face significant disparities in digital skills adoption, especially between metropolitan and non-metropolitan areas. This systematic review explores how digital skills influence innovation within hospitality SMMEs in this context. The review followed the PRISMA framework, with searches conducted across Web of Science and JSTOR. Inclusion criteria were peer-reviewed English-language articles published between 2019 and 2025, focusing on digital skills, innovation, and digital transformation in hospitality or SMME contexts in developing regions. Exclusion criteria ruled out grey literature, non-English texts, and studies unrelated to the hospitality sector. Of 300 initial records, 50 articles met the inclusion criteria and were analysed. Findings reveal that digital skills are key enablers of product, process, and business model innovation. However, challenges such as financial constraints, limited infrastructure, and digital literacy gaps hinder widespread adoption. Hospitality SMMEs with access to digital ecosystems and structured support (e.g., training, mentorship) demonstrate greater innovation capacity and entrepreneurial resilience. The review also finds that while basic digital tools (e.g., social media, booking platforms) are adopted in urban areas, non-metropolitan businesses lag significantly. The study concludes that bridging the digital divide through targeted policy interventions and inclusive digital ecosystems is essential for enhancing innovation in hospitality SMMEs. The findings offer practical insights for policymakers, educators, and support agencies aiming to foster sustainable digital transformation in under-resourced regions.
Keywords: Digital skills, Hospitality SMMEs, SMMEs innovation, Digital transformation, Digital ecosystems and Entrepreneurial resilience.
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