Retail SMEs' performance under impacts of technological uncertainty
DOI:
https://doi.org/10.1108/INMR-10-2023-0172Keywords:
Digital capabilities, Firm performance, Marketing innovation capability, Technological uncertaintyAbstract
PurposeThe study aims to clarify the impact of technological uncertainty (TU) on emerging market retail SMEs' performance with the mediating roles of digital capabilities (DCs) and marketing innovation capability (MarIC).
Design/methodology/approachThe research applied a convenience sampling including 271 valid responses collected from Vietnamese small and medium-sized enterprises (SMEs) in the retail industry. The paper employed partial least squares-structural equation modeling as an analysis technique.
FindingsThe findings show that TU has a positive significant statistical impact on retail SMEs' performance. Furthermore, DCs and MarIC serve as mediators in the relationship between TU and firm performance.
Originality/valueThis research emphasizes both theoretical and practical contributions, especially practical implications for emerging market retail SMEs in enhancing DCs and innovation capability in marketing to facilitate firms to adapt to TU.
Downloads
References
Adner, R., & Kapoor, R. (2010). Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generations. Strategic Management Journal, 31(3), 306–333. https://doi.org/10.1002/smj.821
Ahmed, A., Bhatti, S. H., Gölgeci, I., & Arslan, A. (2022). Digital platform capability and organizational agility of emerging market manufacturing SMEs: The mediating role of intellectual capital and the moderating role of environmental dynamism. 177, 121513.
Aksoy, H. (2017). How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs)? Technology in Society, 51, 133–141. https://doi.org/10.1016/j.techsoc.2017.08.005
Aljanabi, A. R. A. (2022). The role of innovation capability in the relationship between marketing capability and new product development: Evidence from the telecommunication sector. European Journal of Innovation Management, 25(1), 73–94.
Anderson, P. (2001). Organizational Environments and Industry Exit: The Effects of Uncertainty, Munificence and Complexity. Industrial and Corporate Change, 10(3), 675–711. https://doi.org/10.1093/icc/10.3.675
Annarelli, A., Battistella, C., Nonino, F., Parida, V., & Pessot, E. (2021). Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences. Technological Forecasting and Social Change, 166, 120635. https://doi.org/10.1016/j.techfore.2021.120635
Ansong, E., & Boateng, R. (2019). Surviving in the digital era – business models of digital enterprises in a developing economy. Digital Policy, Regulation and Governance, 21(2), 164–178. https://doi.org/10.1108/DPRG-08-2018-0046
Behl, A., Jayawardena, N., Bhardwaj, S., Pereira, V., del Giudice, M., & Zhang, J. (2024). Examining the failure of gamification in implementing innovation from the perspective of problematization in the retail sectors of emerging economies. 129, 102902.
Benner, M. J., & Tripsas, M. (2012). The influence of prior industry affiliation on framing in nascent industries: The evolution of digital cameras. Strategic Management Journal, 33(3), 277–302.
Broekhuizen, T. L., Broekhuis, M., Gijsenberg, M. J., & Wieringa, J. E. (2021). Introduction to the special issue–Digital business models: A multi-disciplinary and multi-stakeholder perspective. Journal of Business Research, 122, 847–852.
Chan, C. M., Teoh, S. Y., Yeow, A., & Pan, G. (2019). Agility in responding to disruptive digital innovation: Case study of an SME. Information Systems Journal, 29(2), 436–455.
Chang, H.-H. S., Knight, G., & Fong, C.-M. (2024). Marketing Capabilities, Strategy, and Performance in International Small- and Medium-Sized Enterprises. Journal of International Marketing, 32(4), 21–37. https://doi.org/10.1177/1069031X231221804
Chatzistamoulou, N. (2023). Is digital transformation the Deus ex Machina towards sustainability transition of the European SMEs? Ecological Economics, 206, 107739.
Chen, H., & Tian, Z. (2022). Environmental uncertainty, resource orchestration and digital transformation: A fuzzy-set QCA approach. Journal of Business Research, 139, 184–193. https://doi.org/10.1016/j.jbusres.2021.09.048
Chen, J.-X., Sharma, P., Zhan, W., & Liu, L. (2019). Demystifying the impact of CEO transformational leadership on firm performance: Interactive roles of exploratory innovation and environmental uncertainty. Journal of Business Research, 96, 85–96. https://doi.org/10.1016/j.jbusres.2018.10.061
Chin, W. W., & Newsted, P. R. (1999). Structural equation modeling analysis with small samples using partial least squares. Statistical Strategies for Small Sample Research, 1(1), 307–341.
Day, G. S., & Schoemaker, P. J. (2000). Avoiding the pitfalls of emerging technologies. California Management Review, 42(2), 8–33.
Didonet, S., Simmons, G., Díaz‐Villavicencio, G., & Palmer, M. (2012). The relationship between small business market orientation and environmental uncertainty. Marketing Intelligence & Planning, 30(7), 757–779.
Doole, I., & Lowe, R. (2012). International marketing strategy (Vol. 7). Cengage Learning.
Drnevich, P. L., & West, J. (2023a). Performance implications of technological uncertainty, age, and size for small businesses. Journal of Small Business Management, 61(4), 1806–1841.
Drnevich, P. L., & West, J. (2023b). Performance implications of technological uncertainty, age, and size for small businesses. Journal of Small Business Management, 61(4), 1806–1841. https://doi.org/10.1080/00472778.2020.1867733
Dubey, R., Bryde, D. J., Dwivedi, Y. K., Graham, G., Foropon, C., & Papadopoulos, T. (2023). Dynamic digital capabilities and supply chain resilience: The role of government effectiveness. International Journal of Production Economics, 258, 108790. https://doi.org/10.1016/j.ijpe.2023.108790
Elia, S., Giuffrida, M., Mariani, M. M., & Bresciani, S. (2021). Resources and digital export: An RBV perspective on the role of digital technologies and capabilities in cross-border e-commerce. Journal of Business Research, 132, 158–169. https://doi.org/10.1016/j.jbusres.2021.04.010
Erdogan, B., & Çemberci, M. (2018). The Effect of Trust and Uncertainty in the Supply Chain on Firm Performance. Journal of International Trade, Logistics and Law, 4(2), 53–62.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 12.
Gartner, W., & Liao, J. (2012). The effects of perceptions of risk, environmental uncertainty, and growth aspirations on new venture creation success. Small Business Economics, 39, 703–712.
Gelderman, C. J., Semeijn, J., & Mertschuweit, P. P. (2016). The impact of social capital and technological uncertainty on strategic performance: The supplier perspective. Journal of Purchasing and Supply Management, 22(3), 225–234. https://doi.org/10.1016/j.pursup.2016.05.004
Ghosal, V., & Loungani, P. (n.d.). The differential impact of uncertainty on investment in small and large businesses. The Review of Economics and Statistics.
Ghosh, S., Hughes, M., Hodgkinson, I., & Hughes, P. (2022). Digital transformation of industrial businesses: A dynamic capability approach. Technovation, 113, 102414.
Goldman, S. P., Van Herk, H., Verhagen, T., & Weltevreden, J. W. (2021). Strategic orientations and digital marketing tactics in cross-border e-commerce: Comparing developed and emerging markets. International Small Business Journal: Researching Entrepreneurship, 39(4), 350–371. https://doi.org/10.1177/0266242620962658
Grewal, R., & Tansuhaj, P. (2001). Building organizational capabilities for managing economic crisis: The role of market orientation and strategic flexibility. Journal of Marketing, 65(2), 67–80.
Hair, J. (2009). Multivariate data analysis. Exploratory Factor Analysis. https://digitalcommons.kennesaw.edu/facpubs/2925/
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.
Hanaysha, J. R., Al-Shaikh, M. E., Joghee, S., & Alzoubi, H. M. (2022). Impact of Innovation Capabilities on Business Sustainability in Small and Medium Enterprises. FIIB Business Review, 11(1), 67–78. https://doi.org/10.1177/23197145211042232
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Heredia, J., Castillo-Vergara, M., Geldes, C., Carbajal Gamarra, F. M., Flores, A., & Heredia, W. (2022). How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal.” Journal of Innovation & Knowledge, 7(2), 100171. https://doi.org/10.1016/j.jik.2022.100171
Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein’s model. Journal of Business Research, 67(8), 1609–1621.
Honjo, Y. (2000). Business failure of new firms: An empirical analysis using a multiplicative hazards model. International Journal of Industrial Organization, 18(4), 557–574. https://doi.org/10.1016/S0167-7187(98)00035-6
Ilmudeen, A. (2022). Leveraging IT-enabled dynamic capabilities to shape business process agility and firm innovative capability: Moderating role of turbulent environment. Review of Managerial Science, 16(8), 2341–2379.
Jiao, H., Yang, J., Zhou, J., & Li, J. (2019). Commercial partnerships and collaborative innovation in China: The moderating effect of technological uncertainty and dynamic capabilities. Journal of Knowledge Management, 23(7), 1429–1454. https://doi.org/10.1108/JKM-10-2017-0499
Jin, C., Liu, A., Liu, H., Gu, J., & Shao, M. (2022). How business model design drives innovation performance: The roles of product innovation capabilities and technological turbulence. 178, 121591.
Kamalipoor, M., Akbari, M., Hejazi, S. R., & Nazarian, A. (2023). The vulnerability of technology-based business during COVID-19: An indicator-based conceptual framework. Journal of Business & Industrial Marketing, 38(5), 983–999. https://doi.org/10.1108/JBIM-10-2020-0455
Kang, J., Gwon, S., Kim, S., & Cho, K. (2013). Determinants of successful technology commercialization: Implication for Korean Government-sponsored SMEs. Asian Journal of Technology Innovation, 21(1), 72–85.
Khin, S., & Ho, T. C. (2019). Digital technology, digital capability and organizational performance: A mediating role of digital innovation. International Journal of Innovation Science, 11(2), 177–195. https://doi.org/10.1108/IJIS-08-2018-0083
Kock, N. (2015). Common Method Bias in PLS-SEM: A Full Collinearity Assessment Approach. International Journal of E-Collaboration, 11(4), 1–10. https://doi.org/10.4018/ijec.2015100101
Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital transformation: An overview of the current state of the art of research. Sage Open, 11(3), 21582440211047576.
Kumar, V., Ramachandran, D., & Kumar, B. (2021). Influence of new-age technologies on marketing: A research agenda. 125, 864–877.
Lee, R., Lee, J.-H., & Garrett, T. C. (2019). Synergy effects of innovation on firm performance. Journal of Business Research, 99, 507–515.
López-Paredes, A. (2020). Fostering Digital Growth in SMEs: Organizational Competence for Digital Transformation. 598, 237.
Malkowska, A., Urbaniec, M., & Kosala, M. (2021). The impact of digital transformation on European countries: Insights from a comparative analysis. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(2), 325–355.
Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033
Murray, J. Y., Kotabe, M., & Zhou, J. N. (2005). Strategic alliance-based sourcing and market performance: Evidence from foreign firms operating in China. Journal of International Business Studies, 36, 187–208.
Nayal, K., Raut, R. D., Yadav, V. S., Priyadarshinee, P., & Narkhede, B. E. (2022). The impact of sustainable development strategy on sustainable supply chain firm performance in the digital transformation era. Business Strategy and the Environment, 31(3), 845–859.
Ngamsutti, S., & Ussahawanitchakit, P. (2016). Marketing innovation capability and marketing performance: An empirical study of electrical and electronic appliances in Thailand. The Business & Management Review, 7(5), 339.
O’Cass, A., & Sok, P. (2014). The role of intellectual resources, product innovation capability, reputational resources and marketing capability combinations in firm growth. International Small Business Journal: Researching Entrepreneurship, 32(8), 996–1018. https://doi.org/10.1177/0266242613480225
Papadopoulos, N., & Cleveland, M. (2023). An international and cross-cultural perspective on ‘the wired consumer’: The digital divide and device difference dilemmas. Journal of Business Research, 156, 113473.
Parnell, J. A. (2013). Uncertainty, generic strategy, strategic clarity, and performance of retail SMEs in Peru, Argentina, and the United States. Journal of Small Business Management, 51(2), 215–234.
Pingali, S. R., Singha, S., Arunachalam, S., & Pedada, K. (2023). Digital readiness of small and medium enterprises in emerging markets: The construct, propositions, measurement, and implications. Journal of Business Research, 164, 113973.
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods, Instruments, & Computers, 36(4), 717–731.
Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40(3), 879–891.
Purwati, A. A., Budiyanto, B., Suhermin, S., & Hamzah, M. L. (2021). The effect of innovation capability on business performance: The role of social capital and entrepreneurial leadership on SMEs in Indonesia. Accounting, 323–330. https://doi.org/10.5267/j.ac.2020.11.021
Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44–55. https://doi.org/10.1016/j.jik.2017.06.002
Reis, J., & Melão, N. (2023). Digital transformation: A meta-review and guidelines for future research. Heliyon, 9(1), e12834. https://doi.org/10.1016/j.heliyon.2023.e12834
Saarikko, T., Westergren, U. H., & Blomquist, T. (2020). Digital transformation: Five recommendations for the digitally conscious firm. Business Horizons, 63(6), 825–839.
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2022). Partial Least Squares Structural Equation Modeling. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of Market Research (pp. 587–632). Springer International Publishing. https://doi.org/10.1007/978-3-319-57413-4_15
Sarwar, Z., Gao, J., & Khan, A. (2023). Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: A dynamic capability perspective. Asia Pacific Journal of Management, 1–35.
Saunila, M. (2014). Innovation capability for SME success: Perspectives of financial and operational performance. Journal of Advances in Management Research, 11(2), 163–175.
Sharma, E., Nigam, N., & Das, S. (2020). Measuring gap in expected and perceived quality of ICT enabled customer services: A systematic study of top ten retailers of India. International Journal of Applied Systemic Studies, 9(2), 159–184.
Shenhar, A. J., & Dvir, D. (1996). Toward a typological theory of project management. Research Policy, 25(4), 607–632. https://doi.org/10.1016/0048-7333(95)00877-2
Skare, M., de Obesso, M. de las M., & Ribeiro-Navarrete, S. (2023). Digital transformation and European small and medium enterprises (SMEs): A comparative study using digital economy and society index data. International Journal of Information Management, 68, 102594.
Soluk, J., Kammerlander, N., & Darwin, S. (2021). Digital entrepreneurship in developing countries: The role of institutional voids. 170, 120876.
Son, B.-G., Kim, H., Hur, D., & Subramanian, N. (2021). The dark side of supply chain digitalisation: Supplier-perceived digital capability asymmetry, buyer opportunism and governance. International Journal of Operations & Production Management, 41(7), 1220–1247.
Song, M., & Montoya-Weiss, M. M. (2001). The effect of perceived technological uncertainty on Japanese new product development.
Troise, C., Corvello, V., Ghobadian, A., & O’Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174, 121227.
Vendrell‐Herrero, F., Parry, G., Bustinza, O. F., & Gomes, E. (2018). Digital business models: Taxonomy and future research avenues. Strategic Change, 27(2), 87–90. https://doi.org/10.1002/jsc.2183
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003
Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing Digital Transformation, 13–66.
Wang, Y., Hong, A., Li, X., & Gao, J. (2020). Marketing innovations during a global crisis: A study of China firms’ response to COVID-19. Journal of Business Research, 116, 214–220. https://doi.org/10.1016/j.jbusres.2020.05.029
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001
Wei, Z., & Zhang, L. (2020). How to perform strategic change? A strategy as practice perspective. Chinese Management Studies, 14(3), 811–832. https://doi.org/10.1108/CMS-04-2019-0140
Wu, J., Wood, G., Chen, X., Meyer, M., & Liu, Z. (2020). Strategic ambidexterity and innovation in Chinese multinational vs. indigenous firms: The role of managerial capability. 29(6), 101652.
Xie, X., Han, Y., Anderson, A., & Ribeiro-Navarrete, S. (2022). Digital platforms and SMEs’ business model innovation: Exploring the mediating mechanisms of capability reconfiguration. International Journal of Information Management, 65, 102513.
Xie, X., Zeng, S., Peng, Y., & Tam, C. (2013). What affects the innovation performance of small and medium-sized enterprises in China? Innovation, 15(3), 271–286. https://doi.org/10.5172/impp.2013.15.3.271
Xu, J., & Yongyuan, M. (2018). Environmental uncertainty, alliance green revolution and alliance performance. Management Review, 30(3), 60.
Zahoor, N., Khan, H., Donbesuur, F., Khan, Z., & Rajwani, T. (2024). Grand challenges and emerging market small and medium enterprises: The role of strategic agility and gender diversity. Journal of Product Innovation Management, 41(2), 473–500. https://doi.org/10.1111/jpim.12661
Zahoor, N., & Lew, Y. K. (2023). Enhancing international marketing capability and export performance of emerging market SMEs in crises: Strategic flexibility and digital technologies. International Marketing Review.
Zehir, C., & Vural, S. Ç. (2024). Dynamic capabilities and firm performance: Moderated mediation model with product innovation as mediator and technology uncertainty as moderator. Journal of Strategy and Management. https://doi.org/10.1108/JSMA-12-2023-0312
Zhao, X., Huo, B., Flynn, B. B., & Yeung, J. H. Y. (2008). The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain. 26(3), 368–388.
Zhou, S. S., Zhou, A. J., Feng, J., & Jiang, S. (2019). Dynamic capabilities and organizational performance: The mediating role of innovation. Journal of Management & Organization, 25(5), 731–747. https://doi.org/10.1017/jmo.2017.20
Published
Issue
Section
License
Copyright (c) 2025 Hoang Van Dinh, Hien Thi Nguyen, Kieu Minh Thi Tran, Anh Tuan Doan
This work is licensed under a Creative Commons Attribution 4.0 International License.
• O(s) autor(es) autoriza(m) a publicação do artigo na revista;
• O(s) autor(es) garante(m) que a contribuição é original e inédita e que não está em processo de avaliação em outra(s) revista(s);
• A revista não se responsabiliza pelas opiniões, ideias e conceitos emitidos nos textos, por serem de inteira responsabilidade de seu(s) autor(es);
• É reservado aos editores o direito de proceder ajustes textuais e de adequação do artigos às normas da publicação.
