Digital Transformation in Export / Import Operations: Challenges Faced by MSMEs in India

Purpose: At present era all type of commercial enterprises is increasingly using cross-border e-commerce. COVID 19 brought a digital revolution and a sense of urgency for all type of businesses to adapt digital technologies. despite the immense scope and potential of Artificial Intelligence (AI), MSMEs are struggling to adapt digital platform. here, we are exploring the factors which influenced the MSMEs to connect themselves to digital trade and what challenges they are still facing in the way of digitalization. Methodology: By analyzing survey data from 100 MSMEs across manufacturing and service sectors in Uttar Pradesh, the study identifies key obstacles. Researchers used simple random sampling method. The survey instrument comprised questions related to organizational, Financial, Technical, legal and behavioral barrier in adopting E-commerce. Data were analyzed using PLS-SEM and SPSS to identify significant trends and impacts. Findings: The study finds that organizational, financial, technical, legal, and behavioral barriers significantly hinder MSMEs’ adoption of e-commerce for digital export-import activities. Among these, legal and behavioral barriers exert the strongest negative influence. Despite recognizing the benefits of e-commerce, MSMEs remain only partially digitalized due to resource and capability constraints. Addressing regulatory, technological, and skill-related challenges is essential to enhance digital EXIM adoption.