Fostering digital literacy among Small and Micro Enterprises: Digital transformation as an open and guided innovation process

This study examines how micro- and small-sized enterprises (MSMEs) can overcome resistance to digitalization through open innovation and design thinking techniques. By analyzing data from 74 small Italian firms participating in an Industry 4.0 adoption policy initiative, the research explores strategies to increase the adoption of new technologies. Using an action-research analytical approach of 9 months, we identify factors facilitating the digitization process in MSMEs and achieving digitization policy objectives. The paper emphasizes the role of training, networking, and co-creation initiatives in enhancing MSMEs' digital literacy and promoting the adoption of new technologies. These findings contribute to the ongoing debate on MSMEs' digital transformation and inform policy-making by highlighting both enablers and barriers. Ultimately, the research aims to provide valuable insights for practitioners and policymakers seeking to support MSMEs in their digitalization journey.