Narrative inquiry reveals that social isolation and institutional gaps impede digitalization in small and medium enterprises, highlighting the need for tailored support and resilience.
Small and medium enterprises (SMEs) have persistently lagged in digitalizing compared to larger entities. The digitalization literature has paid little attention to the lived experiences of SMEs while going through digitalization. The purpose of this study is therefore to shed light on the journey of New Zealand SMEs through stories of their digitalization journey. The study employed narrative inquiry as the methodology to investigate how the SME owners make sense of their digitalization journey. It draws on Resource-Based View, Dynamic Capabilities, Social Cognitive Theory and the concept of Entrepreneurial Loneliness to explain the findings. Three SME owner-managers from manufacturing, retail and fitness sectors were interviewed. The study identified three key themes. Firstly, social isolation hinders digitalization efforts. Secondly, resilience and resourcefulness drive experimentation and continuous learning. Thirdly, a misalignment between institutional support and SME needs calls for targeted, tailored support to help bridge the SME digitalization gap.
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Tan et al. (2026) studied this question.
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