Okay, I just learned about the MACE method of assembling stories, so please bear with my noobish excitement.
M = Milieu, a story about going to another world and then coming back, e.g. The Wizard of Oz, various portal fantasies.
A = Ask/Answer, a story where a question is asked and then answered, e.g. "Who killed [X]?" murder mysteries.
C = Character, a story where the protagonist is unhappy with some aspect of themselves and either changes or comes to term with it, i.e. the kind of story you're talking about.
E = Event, a story where something happens to disrupt the status quo and the characters must establish a new status quo or re-establish the original one.
Most books contain several of these elements; a short story might explore only one.
You can certainly focus on just the character arc, but for something the length of a novel, you'll probably need at least a few other story threads woven in too. Even literary novels that meticulously explore a single character's emotional/personal growth arc in very close detail usually have at least a few externally-driven plot events to help drive that growth.