Navigating digital transformation in bed and breakfasts: a grounded theory framework from Italian case studies

Purpose This study aims to examine how bed & breakfasts (B&Bs) navigate digital transformation under resource constraints, focusing on technology adoption, customer experience and organizational adaptation in micro-hospitality. Design/methodology/approach The authors use grounded theory to analyze 31 interviews with owners of 55 Italian B&Bs already undergoing digital transformation, using a Gioia-style data structure to present the coding progression transparently. Findings The authors introduce guest-centric digital synergy: digital transformation as a paradox-driven capability system. Six propositions explain this capability system. They show how digital empathy, sociotechnical integration, cooperation and trust-based governance align technology, market demands and the hospitality ethos. Research limitations/implications The qualitative design and focus on Italian B&Bs limit generalizability; cultural and regulatory contexts may shape outcomes differently elsewhere. Future research should test the proposed framework quantitatively and extend comparisons across countries to validate portability. Studies on inclusivity and labor dynamics are also needed to address risks of job displacement and digital divide. Originality/value This research contributes to theory by reframing digital transformation in Italian micro-hospitality as a capability-dependent, contextually embedded process. It moves beyond descriptive accounts to offer a systemic perspective that integrates paradox management, cooperative strategies and sociotechnical design, providing a foundation for empirical testing and actionable guidance for small hospitality firms.