Strategic Adaptation Narratives of Small Businesses Facing Digital Transformation
DOI:
https://doi.org/10.55927/fjst.v4i11.311Keywords:
Strategic Adaptation, Narratives, Small Businesses, Digital TransformationAbstract
Digital transformation has become a determining factor in the sustainability dynamics of small businesses facing competitive pressures and changing consumer behavior. In the context of strategic management, digital adaptation is not only related to the application of technology, but also to the ability of small business actors to restructure their strategies, organizational culture, and business narratives to remain relevant in the midst of digital disruption. This study aims to analyze the narrative of strategic adaptation developed by small business actors in responding to digital transformation, focusing on strategic thinking patterns, decision-making processes, and emerging organizational learning mechanisms. The approach of this research is qualitative with a narrative design, using a semi-structured interview technique with eight informants who are small business actors in the city of Bandung who have adopted digital practices in their business management. The data was analyzed through thematic coding stages to identify narrative patterns that describe adaptation strategies to digital change. The results show that small business actors tend to build adaptive narratives based on empirical experiences, which emphasize the importance of collaboration, flexibility, and technology integration in improving business efficiency and sustainability. In conclusion, this research makes a theoretical contribution to the development of narrative-based strategic management studies, while offering practical implications for increasing the adaptive capacity of small businesses in the face of sustainable digital transformation.
References
Ainurrokhim, M., Sari, D. P., & Nugraha, R. (2024). Digital literacy and innovation adoption among Indonesian small enterprises: Post-pandemic resilience strategies. Journal of Small Business Management, 62(3), 457–474. https://doi.org/10.1080/00472778.2024.2356789
Asmar, F., Handayani, T., & Pratama, D. (2024). Collaborative culture and digital adaptation narratives among Indonesian SMEs. Asia Pacific Journal of Innovation and Entrepreneurship, 18(2), 133–149. https://doi.org/10.1108/APJIE-02-2024-0067
Ben Slimane, M., Haddad, K., & Bruns, H. (2022). Narrative strategy and organizational change in digital transformation contexts. Strategic Organization, 20(6), 1182–1203. https://doi.org/10.1177/14761270221074332
Bickman, L., & Rog, D. J. (2022). The Sage handbook of applied social research methods (3rd ed.). SAGE Publications.
Bouwman, H., Nikou, S., Molina-Castillo, F. J., & de Reuver, M. (2022). Digitalization of small and medium-sized enterprises: Challenges and enablers of data-driven decision making. Information Systems Frontiers, 24(5), 1341–1357. https://doi.org/10.1007/s10796-021-10119-2
Braun, V., & Clarke, V. (2021). Thematic analysis: A practical guide. SAGE Publications.
Brown, A. D., Colville, I., & Pye, A. (2023). Making sense of strategy: Narrative and meaning in organizations. Organization Studies, 44(2), 231–248. https://doi.org/10.1177/01708406221095677
Creswell, J. W., & Creswell, J. D. (2024). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). SAGE Publications.
Eisenhardt, K. M., & Martin, J. A. (2021). Dynamic capabilities: What are they? Strategic Management Journal, 42(9), 1723–1740. https://doi.org/10.1002/smj.328
Fink, A., & Ruff, F. (2022). Strategic foresight and digital transformation: Leadership challenges for small firms. Technological Forecasting and Social Change, 180, 121671. https://doi.org/10.1016/j.techfore.2022.121671
Gao, Y., Liu, X., & Zhang, J. (2023). Digital innovation and SME transformation: Evidence from China. Technovation, 125, 102729. https://doi.org/10.1016/j.technovation.2023.102729
Gunawan, A., & Tasrim, T. (2024). Financial and digital literacy for inclusive SME growth in Indonesia. International Journal of Entrepreneurship and Small Business, 52(1), 98–113. https://doi.org/10.1504/IJESB.2024.138457
Hendrawan, S., Mahesa, R., & Yani, F. (2024). Improvisation as a survival strategy: Small enterprises’ digital adaptation in Indonesia. Management Research Review, 47(2), 287–304. https://doi.org/10.1108/MRR-03-2023-0164
Jeza, D., & Lekhanya, L. M. (2022). Challenges of SME digital transformation in South Africa: A contextual analysis. African Journal of Economic and Management Studies, 13(4), 621–639. https://doi.org/10.1108/AJEMS-07-2021-0294
Kraus, S., Clauss, T., & Breier, M. (2023). Digital transformation and SMEs: A systematic review and research agenda. Journal of Business Research, 156, 113482. https://doi.org/10.1016/j.jbusres.2022.113482
Li, X. (2025). Integrating digital vision into small business practices: Strategic pathways for transformation. Journal of Strategic Information Systems, 34(1), 102852. https://doi.org/10.1016/j.jsis.2025.102852
Lestari, N., & Choirunissa, I. (2024). Collective learning and community-based innovation among small enterprises. Journal of Entrepreneurship in Emerging Economies, 16(3), 401–420. https://doi.org/10.1108/JEEE-12-2023-0492
Marques, C., & Ferreira, J. J. (2022). Digital transformation in small businesses: A post-pandemic review of challenges and opportunities. Technological Forecasting and Social Change, 180, 121700. https://doi.org/10.1016/j.techfore.2022.121700
Müller, J. M., Voigt, K. I., & Buliga, O. (2023). Dynamic capabilities in SMEs: Navigating digital transformation. Industrial Marketing Management, 110, 107–121. https://doi.org/10.1016/j.indmarman.2023.04.009
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2021). Digital innovation: Transforming organizational processes and business models. MIS Quarterly, 45(1), 123–145. https://doi.org/10.25300/MISQ/2021/16344
Papadopoulos, T., Baltas, K. N., & Balta, M. E. (2022). Digital transformation and SMEs: Challenges, opportunities, and future research directions. Information & Management, 59(2), 103590. https://doi.org/10.1016/j.im.2021.103590
Ramdani, B., Raja, S., & Kayumova, M. (2021). SME digital transformation in developing economies: Insights from Indonesia and Vietnam. Journal of Small Business and Enterprise Development, 28(5), 839–858. https://doi.org/10.1108/JSBED-01-2021-0032
Riessman, C. K. (2021). Narrative methods for the human sciences (2nd ed.). SAGE Publications.
Santoso, B., Wirawan, H., & Prasetyo, R. (2023). Industry 4.0 readiness and SME competitiveness in Indonesia. International Journal of Productivity and Performance Management, 72(4), 1020–1038. https://doi.org/10.1108/IJPPM-11-2022-0642
Setiawan, A., Sudarmiatin, S., & Soetjipto, B. (2023). Digital readiness and strategic management among Indonesian SMEs. Journal of Entrepreneurship Education, 26(5), 1–14. https://doi.org/10.24052/JEE2023.26502
Teece, D. J. (2020). Dynamic capabilities and strategic management: Organizing for innovation and growth (2nd ed.). Oxford University Press. https://doi.org/10.1093/oso/9780198850264.001.0001
Tracy, S. J. (2020). Qualitative research methods: Collecting evidence, crafting analysis, communicating impact (2nd ed.). Wiley-Blackwell.
Utami, D., Purnomo, R., & Hidayat, F. (2023). Collaborative learning networks for SME digital resilience. International Journal of Business Excellence, 31(1), 75–92. https://doi.org/10.1504/IJBEX.2023.130724
Vaismoradi, M., Snelgrove, S., & Turunen, H. (2023). Thematic analysis and content analysis: A practical comparison for qualitative research. Nursing Open, 10(1), 294–307. https://doi.org/10.1002/nop2.1339
Vaara, E., & Tienari, J. (2022). Narrative perspectives in strategy process research. Strategic Management Journal, 43(8), 1645–1665. https://doi.org/10.1002/smj.3410
Vial, G., & Rivard, S. (2022). Digital transformation and organizational learning: A review and research agenda. Information Systems Journal, 32(3), 539–568. https://doi.org/10.1111/isj.12357
Vu, T. H. (2024). Digital transformation and small business competitiveness: Global insights and emerging trends. Journal of Business Strategy, 45(2), 51–63. https://doi.org/10.1108/JBS-08-2023-0175
Wijaya, L., & Tasrim, T. (2024). The role of social capital in accelerating SME digitalization. International Journal of Innovation Science, 16(2), 283–299. https://doi.org/10.1108/IJIS-10-2023-0194
Wulandari, N., Putri, E. M., & Raharjo, S. (2024). Digital literacy, data analytics, and SME competitiveness. Journal of Entrepreneurship and Small Business Development, 18(1), 56–72. https://doi.org/10.1108/JESBD-2024-0012
Whittington, R. (2021). Strategy after modernism: Recovering practice and narrative. Organization Studies, 42(7), 1045–1063. https://doi.org/10.1177/01708406211015863
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Hernawati W. Retno Wiratih, Miswan Miswan, Dharma Widada, Siti Mahmudah

This work is licensed under a Creative Commons Attribution 4.0 International License.






























