Exploring the Smart Retail Scenario for Traditional Retailers: Case Studies From a Developing Country

Muriani Emelda Isharyani, Bertha Maya Sopha, Benny Tjahjono, M. A. Wibisono

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Abstract

Traditional retail must maintain its dominance in developing countries by adopting a smart retail strategy that has been proven to enhance the performance of large retailers in developed countries. However, traditional retail’s limited resources make smart retail adoption difficult. This study aims to explore the transformation of traditional retail into smart retail and identify the influential factors toward smart retail technology (SRT) adoption. Task-Technology Fit (TTF) is used as a theoretical basis for a successful smart retail adoption framework based on how well the SRT fits the abilities of the individual performing the task. The findings from in-depth-semi-structured interviews indicate that smart retail is feasible for traditional retail since SRT has been adopted in the form of mobile apps and digital payment. However, to transform into smart retail, traditional retailers must consider prior technology adoption experience, users’ skill level, operational requirements, and external variables when determining alternative SRT options, which are then selected based on expected features and benefits. Traditional retailers must identify the risks and user acceptance of the adopted SRT during the implementation stage. The problems encountered during the implementation stage can be analyzed to develop SRT adoption strategies that are suited to the needs and capabilities of technology users in traditional retail. The framework proposed can serve as a reference for traditional retailers when making investment decisions and determining how far along they are in the process of transforming into smart retailers, as well as for developing strategies to enhance retail performance.
Original languageEnglish
Pages (from-to)1-17
Number of pages17
JournalIEEE Transactions on Engineering Management
Volume(In-Press)
Early online date10 Oct 2023
DOIs
Publication statusE-pub ahead of print - 10 Oct 2023

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Funder

Indonesia Endowment Fund for Education of the Ministry of Finance
LPDP Kementerian Keuangan Republik Indonesia
Indonesia Lecturer Excellence Scholarship (Beasiswa Unggulan Dosen Indonesia – BUDI)

Keywords

  • Developing country
  • future scenarios
  • smart retail
  • task-technology fit (TTF)
  • traditional retail

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