Volume 7, Issue 3, March – 2022 International Journal of Innovative Science and Research Technology ISSN No:-2456-2165 IJISRT22MAR1132 www.ijisrt.com 901 Unfreezing and Refreezing the Digital Mindset of Businesses Darren S. Fisher, Faculty of Business Administration, LIGS University, Hawaii USA Abstract:- Innovative capabilities are critical to the success of any business opting to participate in the digital economy. However, to ensure that these are accessible, companies must understand why it is needed. While organizations themself confuse their role in the digital economy. Organizations must change the way they approach digital innovativeness and their level of participation in the digital ecosystem. Thus, identifying critical change management processes to redefine the digital mindset is essential to the transition and sustainability of innovative digital actions. This digital mindset must change internally and enable organizations to grow within market industries and, by extension, the digital economy. While government and its regulatory frameworks have respective roles in making the digital environment conducive, businesses must learn to use these environmental elements to realize sustainable, innovative performance. Keywords:- Change, Digital Economy, Digital Mindset, Digital Transformation, Innovative Capabilities, Strategy, Sustainable. I. INTRODUCTION Success materializes when business strategy reflects a thorough understanding of where they are, where they want to be, what factors influence their decisions, and how they intend to get there. The role of stakeholders in the bid for digital transformation in a digital economy is heavily debated throughout academia and for a good reason. There is often the misconception that government regulation and policy frameworks drive technological innovation, but as studies evolve, this view comes under doubt. Moreover, participants lack true clarity of their role in the progression of new and emerging technologies in creating sustainable digital ecosystems that are utilitarian by design. The critical divide is governments who are enablers and the drivers who are actors in the digital transformation process. Once the roles are clearly understood, the requisite parties can progress towards charting plans to embrace the digital revolution openly. In parallel studies in 2022 by the author on the implications of government action on adopting new and emerging technologies by businesses in Jamaica, the author opens gaps and builds on previous research. The research explains the correlation and significance of government regulative actions on the business environment. It also provides evidence that government regulations act as an enabling force to create a climate conducive to adopting and integrating new technology but not drive its integration. The study also provides background information alluding to the foundational impact that regulations have on the Socio-Economic Readiness (SER) of nations to embrace the digital economy [7]. The same article highlights that creating embracive regulations is positively correlated with the local business development of technological practices but with deeper underlying conditions of applicability, such as business development activities. There is still a lag in adoption and transformation capabilities among firms despite discourse on the subject due to understanding and lack of building on relevant capabilities. However, this problem is significant because the lapse in digital transformation creates a divide and degradation of the national economy when faced with global competition, technology, and knowledge transference. If actors do not clearly understand their role, the gap will widen. As such critical actors, businesses must undergo continuous mindset adjustments to adopt, integrate, and manage digital transformation effectively. Essential to the development of the digital economy is the activities of the actors, in this case, businesses, institutions, and consumers, notwithstanding having access to technology but the application and management of said technology. To effectively grow the applicability of new and emerging technologies, businesses must unlearn previous connotations associated with the unknown and unwillingness to embrace the digital environment through integration, application, and innovation capabilities. Hence to understand their role in driving the digital economy, businesses must rethink the opposing notions of technology and grasp the disruptive benefits and how to build capabilities that generate sustainable technological, innovative, and economic performance. To effectively manage this approach to reconstituting a digital mindset in businesses, it is necessary to review an applicable change management theory. II. KURT LEWIN’S THEORY THROUGH THE LENS OF INNOVATION Throughout academic history, research brings to the forefront a variety of change management theories that drive change and the adoption of new ideas, visions, and objectives. These models are often replicable across industries and valuable in their unique way. Some of these theories include the Lewin's Change Management Theory, McKinsey 7-Model, the Nudge Theory, the ADKAR Change Management Model, the Kubler-Ross Change Curve, the Bridges' Transition Model, the Satir Change Model, Kotter's 8-Step Theory, Mauerer 3 Levels of Resistance Model and lastly the Deming Cycle (Plan, Do, Check, Act, PDCA). Notwithstanding this variety of