Dynamic capabilities for omnichannel transformation in MSMEs: A comparative case study of fashion and furniture sectors

Abstract

Omnichannel is one of the most recent trends in online shopping, retail, and contact centers. It provides a seamless and integrated customer experience across all available communication channels. MSMEs play a crucial role in developing economies, but their journey towards omnichannel integration faces significant challenges due to limited resources, managerial commitment, and technological adaptability. This study explores the stages of transformation towards omnichannel adoption among micro, small, and medium enterprises (MSMEs) in fashion and furniture, as representative subsectors of Indonesia's creative economy, focusing on the dynamic capabilities. This research addresses the gap in understanding how different MSMEs navigate these challenges through various stages of transformation. Using a multiple case study approach, the research investigates two MSMEs in fashion and furniture industries through in-depth interviews and document analysis. Findings reveal that fashion MSMEs leverage real-time inventory management and personalized customer engagement for rapid integration, whereas furniture MSMEs adopt incremental approaches focused on logistical efficiency and collaboration with external partners. By emphasizing sector-specific applications of dynamic capabilities—sensing, seizing, and transforming—this study underscores the importance of collaborative alliances and leadership in addressing operational challenges. Practical implications include strategies for MSMEs to enhance competitiveness through tailored omnichannel solutions. These insights offer practical implications for MSMEs aiming to enhance their competitive edge through omnichannel strategies.