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From Digital Lag to Contractual Frugality: Rethinking Governance of Artisanal SMEs in Peripheral Regions

Year: 2026
Type: conference-paper
Abstract: This paper examines how artisanal small and medium enterprises (SMEs) navigate the digital transformation associated with Industry 4.0, focusing on the often-overlooked contractual dimension of their collaborations with technology providers. Drawing on the case of Calabria, a peripheral region of Southern Italy characterized by strong craft traditions and limited institutional support, the study explores how micro-enterprises experience, interpret, and negotiate digital service agreements. Building on literature in Industry 4.0, contract theory, and frugal innovation, the paper argues that artisans’ difficulties in adopting digital technologies stem less from technological resistance than from contractual asymmetry – a mismatch between complex, provider-driven contracting models and the limited legal and cognitive resources of small firms. To investigate this gap, an exploratory questionnaire was administered to Calabrian artisanal enterprises. Findings reveal low digital and contractual literacy, heavy reliance on relational trust, and a consistent preference for short, clear, and affordable agreements. Rather than signaling informality or backwardness, these preferences embody a pragmatic search for accessibility and fairness. On this basis, the paper introduces the concept of Frugal Contracting – an institutional innovation that re-designs formality itself to suit the scale and culture of micro-enterprises. By integrating empirical insight with conceptual development, the study reframes the digitalization of artisans as a problem of institutional design rather than technology adoption, contributing to ongoing debates on inclusive, human-centric, and regionally grounded forms of Industry 4.0.
DOI: 10.1016/j.procs.2026.02.428
Language: English
Open Access status: diamond
OpenAlex ID: W7140103589
FWCI:
Cites: 14
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Related to: 10