Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs

The consequences of digital transformation are becoming more visible and pervasive. Despite extensive research on the technological side of the transformation, emphasizing its discontinuous nature, little is known about how managers reframe their cognitive models, reshape routines, and exploit novel organizational structures to implement digital transformation initiatives. We abductively characterize the micro-foundational elements of cognitive, routines, and organizational structure pillars by building on an integrative theoretical framework and looking at how twenty-four Italian SMEs in the agri-food sector pursue digital transformation. Significant differences emerge between SMEs with high and low levels of technological integration, leading to relevant theoretical and managerial implications on how SMEs can successfully navigate digital transformation. Finally, we open up new avenues for future research.