The intergenerational digital capital conversion model: bridging the third-level digital divide for peri-urban micro-entrepreneurs

Purpose This study aims to examine how digital and social capital interact within multigenerational family enterprises to produce divergent livelihood outcomes amid the third-level digital divide among informal micro-entrepreneurs. Design/methodology/approach Using a qualitative multiple case study, six vegetable vendor families in peri-urban East Jakarta were analyzed through interviews, observations, focus group discussions and documentation. One case incorporated participatory action research as a proof of concept, while others served as naturalistic comparisons. Findings Findings show that successful digital adaptation depends on digital intermediaries, conversion of bonding into bridging social capital, appropriate platform affordances and early dispositional shifts. Research limitations/implications The study is limited to six multigenerational vegetable vendor families in peri-urban East Jakarta and does not aim for statistical generalization. However, it offers analytical insight into how family relations and social capital shape digital adaptation among informal micro-entrepreneurs. Practical implications The findings suggest that digital inclusion initiatives should recognize the role of family-based digital support, social capital conversion and platform suitability in strengthening digital adaptation among informal micro-entrepreneurs. Social implications The study highlights how digital transformation can intensify unequal economic outcomes among informal micro-entrepreneurs, reflecting the persistence of the third-level digital divide beyond access and skills alone. Originality/value The study proposes the intergenerational digital capital conversion model to explain how digital and social capital interact within multigenerational family enterprises to shape divergent livelihood outcomes.