How Individual Level Factors Impact Digitalization in SMEs: An Empirical Analysis in the Wine Industry

In modern society, digitalization has become increasingly pervasive, both in the lives of individuals and in business activities. Research thoroughly analysed the advantages and challenges of digitalization, suggesting that this not only involves the adoption of new technologies but also requires significant changes in the processes and capabilities of the firm. As such, human resources are among the most affected by companies' digitalization. Despite this, we observed a lack of studies investigating the interplay between companies' digitalization and individual responses. Most studies focus on analysing how digitalization affects individuals but fail to explain how individuals can, in turn, influence companies' digitalization. Aiming to help bridge this gap we first performed a thorough literature review to identify the main individual-level factors influencing companies' digitalization. Among these, we included digital skills, skills and capabilities, culture, and top management support. Then, to support literature results and lay the foundation for new theory development, we used a rigorous case study methodology to provide empirical evidence of how individual responses affect SMEs’ digitalization. Specifically, we performed a series of semistructured interviews with the managers of 4 Italian SMEs in the wine industry. We chose to focus on the wine industry since it is a sector characterized by both great opportunities, and significant obstacles to digitalization. Ultimately, our analyses show that SMEs’ digitalization is significantly affected by the management’s actions, which also affect digital skills and organizational culture. Indeed, companies realized the importance of digital transformation and tried to foster it by hiring new professionals and by rethinking management processes. At the same time, SMEs lack the resources to invest in the development of advanced digital knowledge and skills. As a result, individuals still lack advanced digital knowledge and show strong resistance to the introduction of innovative solutions that would radically change traditional production processes. One of the tools that SMEs can leverage to overcome these obstacles is collaboration with external partners, who can