From surviving to thriving: How digitalisation supports retail SMEs
Author: Abhinav Kumar
Supervisors: Yury Zhukov Sharan Singh
2 December 2024
Kumar, A. (2024). From surviving to thriving: How digitalisation supports retail SMEs [Master's thesis, Auckland International Campus, Otago Polytechnic]. Research Bank. https://doi.org/10.34074/thes.6746
Abstract
This study explores the effects of digitalisation on small and medium-sized retail enterprises in Auckland, New Zealand. It focuses on three key variables: Information and Computer Technology adoption, digital literacy and technical resources and explores their impact on company resilience and revenue growth. The success and development of small and medium-sized retail enterprises have been a point of discussion, especially in the light of challenges to brick-and-mortar retail following COVID-19 and markets increasingly dominated by large national and international retailers. Various digitalisation tools have the potential to enhance the performance of small and medium-sized retail enterprises if used effectively or waste scarce resources if applied without the right skills or not operationalised effectively. This study aimed to collect empirical evidence of the impact of digitalisation on small and medium-sized retail enterprises in Auckland, New Zealand to provide a better understanding of factors that can either help or hinder the companies. The study employed a survey-based approach to gather primary data from small and medium-sized retail enterprises in Auckland, New Zealand. The study collected survey data from sales representative, managers and owners of 88 different small and medium retail companies across Auckland, New Zealand and used a Likert scale to measure Information and Computer Technology adoption, digital literacy, technical resources, resilience and revenue growth. The results demonstrated that Information and Computer Technology adoption and digital literacy considerably contribute to company resilience and revenue growth, with Information and Computer Technology adoption having the most significant effect. While technical resources were crucial for revenue growth, the impact on company resilience was not significant. The study provided empirical evidence that digitalisation is critical for preparing small and medium-sized retail enterprises for market disruptions and maintaining financial stability and enhances the understanding of the individual impact and relative usefulness of various aspects of digitalisation. It also provides guidance and recommendations for more targeted and meaningful investment in digitalisation for small and medium-sized retail enterprises in Auckland, New Zealand and elsewhere.
Keywords
digitalisation, retail SMEs, ICT adoption
Licence
A copy of the thesis is publicly available under a Creative Commons Attribution Non-Commercial No Derivatives licence CC BY-NC-ND 4.0 International
This licence applies except where otherwise indicated, especially for images.
