Revisiting digital transformation adoption in SMEs in an Asian context: do managerial factors matter?

Purpose With the rapid development of new technologies, digital transformation (DT) has become essential for the competitiveness and sustainability of small and medium-sized enterprises (SMEs). Given SMEs' unique characteristics, the owner-leader is considered a critical driver of DT adoption. However, existing studies have paid limited attention to managerial-level factors shaping DT adoption, especially in the context of developing Asian countries. This study aims to identify and examine key managerial determinants of DT adoption at the individual level in the SME context. Design/methodology/approach This study conducted a qualitative research approach. By conducting 15 in-depth interviews with owners/leaders/senior managers in SMEs, this approach offers valuable insights for both academics and practitioners into how managerial attributes shape DT initiatives in these firms. Findings The results of the analysis highlighted three critical managerial characteristics that directly influence DT adoption in the Asian SMEs context: (1) owner-centric transformational leadership, (2) digital competence, and (3) managerial risk-taking behaviour. Originality/value This study extends Upper Echelons Theory by conceptualising DT adoption in SMEs as an owner-centric process and shifting attention from demographic proxies to managers' psychological characteristics in the digital era, offering culturally contextualised evidence from SMEs in a lower-middle-income Asian context. Practical implications are also derived for managers in adopting DT in the context of SMEs in developing Asian countries.