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This study explores digital transformation in the tea supply chain within developing economies, with a focus on smallholder tea producers in Sri Lanka. Tea is one of the most widely consumed beverages in the world. Among the tea producers, smallholder tea producers account for a substantial portion of total tea production in several countries. Mobile phones play a significant role in providing smallholder producers with access to crucial agricultural information, markets and financial services.

This study adopts a deductive approach, analysing mobile phone ownership, literacy, experience and perception among smallholder tea producers. The chi-squared test of independence and hierarchical clustering methods were used to test the hypotheses and address the research questions.

The study identifies four clusters of smallholder tea producers as Basic Tech Adopters, Digital Laggards, Skeptical Feature Phone Users and Tech-savvy Adopters based on their characteristics towards mobile-based technologies. Approximately 75% of the surveyed sample, which included both tech-savvy and basic-tech adopters, showed a positive attitude toward adopting mobile-based agricultural technologies.

The study suggests developing targeted strategies and policies to enhance the productivity of the smallholder tea production process in developing economies. The study highlights the importance of awareness, access, affordability and availability when implementing digital services for businesses at the base of the pyramid, such as tea smallholdings in developing economies.

The present study aims to address the lack of data-driven empirical studies on the use of mobile phones in smallholder settings. The findings of this study enable the enhancement of entrepreneurship within the tea production supply chain, especially, within stakeholders who deliver digital transformation support services.