From laggards to innovators: navigating ICT implementation in nanostores

Purpose This study maps and explains the stages of information and communication technology (ICT) implementation in Indonesian nanostores to guide their digital transformation. Design/methodology/approach A sequential explanatory mixed-methods design was employed. A survey of 300 nanostores was analyzed using a three-dimensional Retail Process Classification and cluster analysis. Six purposive case studies with semi-structured interviews were used to further examine governance behind the digital transformation. Findings Five ICT implementation stages were identified: Digital Laggards, Supplier-Driven Digital Adopters, Balanced Digital Transitioners, Advancing Digital Integrators and Digital Innovators. Three strategic transition pathways have emerged: supplier-driven, balanced and adaptive exploration. Key components of a governance system include transformation orientation, owner-centred decision-making, informal networks and institutional support and iterative decision-making cycles. Originality/value The paper makes two linked contributions. It empirically segments nanostores by digital maturity, mapping process-level ICT indicators to clear stages and transition pathways. It also proposes a layered governance model as a context for nanostores decision-making in digital transformation.