Digital Mindset Deficit in MSMEs Leadership: A Grounded Theory Study of Pottery Enterprises in Lombok
DOI:
https://doi.org/10.31004/riggs.v4i4.4037Keywords:
Digital Transformation, Human Resouces, Leadership, Mindset, MSMEsAbstract
The digital economy has significantly transformed the global business environment, making digital technology a critical determinant of business competitiveness and sustainability. Despite their strategic importance, many small and medium enterprises (SMEs) face significant challenges in implementing digital transformation initiatives. This study investigates leadership-related barriers to digital transformation among Pottery SMEs in Lombok, Indonesia, with a particular focus on how deficiencies in digital mindsets emerge and shape managerial decision-making. Adopting a grounded theory approach, qualitative data were collected through in-depth interviews and participant observation involving SME owners and managers. Data analysis was conducted through systematic open, axial, and selective coding procedures, supported by NVivo software, to generate substantive theory grounded in empirical findings. The results reveal a persistent gap between awareness of digital technologies and their effective integration into daily business practices. Cognitive limitations, uncertainty, and sociocultural norms influence leaders' perceptions of digital technologies and limit their confidence in adopting digital solutions. Consequently, decision-making regarding digital initiatives remains largely intuitive and reactive rather than strategic and forward-looking, reflecting limited digital leadership capabilities. Despite this, SME leaders expressed a generally optimistic view of digital transformation, particularly regarding market expansion and business sustainability. They emphasized the importance of practical training, ongoing mentoring, and accessible digital infrastructure to facilitate digital adoption. This study provides context-specific insights into the barriers to digital mindsets in SME leadership and underscores that successful digital transformation requires not only technological readiness but also cognitive readiness and supportive institutional and socio-cultural conditions.
Downloads
References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),
–120. https://doi.org/10.1177/014920639101700108
Bazeley, P., & Jackson, K. (2013). Qualitative data analysis with NVivo (2nd ed.). Sage.
https://doi.org/10.1080/14780887.2014.992750
Bendig, D., Strese, S., Flatten, T., da Costa, M. E. S., & Brettel, M. (2023). Digital dynamic capability:
Conceptualization and empirical investigation. Journal of Business Research, 155, 113378.
https://doi.org/10.1016/j.jbusres.2022.113378
Bryant, A. (2022). The varieties of grounded theory. Qualitative Inquiry, 28(2), 254–264.
https://doi.org/10.1177/10778004211058467
Charmaz, K. (2020). Constructing grounded theory. Qualitative Inquiry, 26(2), 165–176.
https://doi.org/10.1177/1077800419879081
Corbin, J., & Strauss, A. (2015). Basics of qualitative research: Techniques and procedures for
developing grounded theory. Sage Publications.
Flick, U. (2022). An introduction to qualitative research (6th ed.). Sage Publications.
https://doi.org/10.4135/9781529770278
Hadiningrum, M., et al. (2021). Social and cultural influences on SME digital adoption in Indonesia.
Journal of Asian Business and Economic Studies. https://doi.org/10.1108/JABES-07-2020-0080
Kerres, M., & Buntins, K. (2021). Digital leadership for learning: Leaders’ discourse on transformation.
British Journal of Educational Technology, 52(4), 1345–1360. https://doi.org/10.1111/bjet.13087
Kraus, S., Durst, S., Ferreira, J., Veiga, P., & Kailer, N. (2022). Digital transformation in SMEs: A
systematic literature review. Journal of Small Business Management, 60(2), 305–334.
https://doi.org/10.1080/00472778.2021.1898375
Leonardi, P. M., & Neeley, T. (2022). The digital mindset: What it really takes to thrive in the age of
data, algorithms, and AI. Harvard Business Review Press.
Li, L., Su, F., Zhang, W., & Mao, J.-Y. (2022). Digital transformation by SME entrepreneurs: A capability
perspective. Information Systems Journal, 32(1), 86–112. https://doi.org/10.1111/isj.12328
Li, L., Su, F., Zhang, W., & Mao, J. (2022). Digital transformation and SMEs: A systematic review.
International Journal of Information Management, 66, 102542.
https://doi.org/10.1016/j.ijinfomgt.2022.102542
Mills, J., Birks, M., & Hoare, K. (2023). Grounded theory in practice: Strategies for qualitative research.
Qualitative Research Journal, 23(1), 7–22. https://doi.org/10.1108/QRJ-11-2021-0133
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and
entrepreneurship. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.103773
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital mindset: Rethinking innovation for the era
of digital transformation. California Management Review, 61(2), 5–25.
https://doi.org/10.1177/0008125619846021
Sari, N. P. N., Lestari, R., & Husni, N. (2022). Determinants of e-commerce adoption in SMEs: Evidence
from Lombok. Entrepreneurship and Sustainability Issues, 9(4), 377–395.
https://doi.org/10.9770/jesi.2022.9.4(23)
Solis, B. (2023). The essential traits of digital leadership. California Management Review, 65(3), 5–28.
https://doi.org/10.1177/00081256221075442
Soto-Acosta, P., Popa, S., & Palacios-Marqués, D. (2023). Technological capability, digital
transformation, and firm performance. Technovation, 122, 102619.
https://doi.org/10.1016/j.technovation.2023.102619
Urquhart, C. (2022). Grounded theory for qualitative research: A practical guide. Sage Publications.
https://doi.org/10.4135/9781526402196
Verhoef, P. C., et al. (2021). Digital transformation: A multidisciplinary reflection and research agenda.
Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Williams, M., & Moser, T. (2019). The art of coding and thematic exploration in qualitative research. The
Qualitative Report, 24(3), 593–601. https://doi.org/10.46743/2160-3715/2019.3728
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Yasyifa Dian Urfina, Nazilatus Syiam, Sulhan Hadi, Candra Candra
This work is licensed under a Creative Commons Attribution 4.0 International License.
