IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v72y2023ics0160791x22003323.html
   My bibliography  Save this article

The path to digital maturity: A cluster analysis of the retail industry in an emerging economy

Author

Listed:
  • Pinto, Marcelo Rezende
  • Salume, Paula Karina
  • Barbosa, Marcelo Werneck
  • de Sousa, Paulo Renato

Abstract

This study identifies dimensions that characterize retail companies' digital maturity, clustering them into distinct levels and placing them on a path toward maturity. A quantitative methodology was used, during which strategic-level managers of Brazilian retail companies completed an electronic questionnaire. Cluster analysis was used to identify digital maturity levels. Five maturity dimensions—strategy, market, operations, culture, and technology—separate companies across maturity levels, with no dimension systematically achieving higher scores. Higher average scores for the culture dimension were found, which supports that culture is a driver of digital transformation. Larger companies were part of the cluster of digitally mature firms, and companies with lower digital maturity required greater investment in strategy and operations. This study characterizes the Brazilian retail sector in terms of digital maturity, which might be similar to other emerging economies. This study's theoretical contributions are grounded by dynamics capabilities theory, suggesting that a company must develop capabilities related to five dimensions to achieve digital maturity, and thus competitive advantages. This study proposes a framework based on the structure-conduct-paradigm, which future research should explore further.

Suggested Citation

  • Pinto, Marcelo Rezende & Salume, Paula Karina & Barbosa, Marcelo Werneck & de Sousa, Paulo Renato, 2023. "The path to digital maturity: A cluster analysis of the retail industry in an emerging economy," Technology in Society, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:teinso:v:72:y:2023:i:c:s0160791x22003323
    DOI: 10.1016/j.techsoc.2022.102191
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X22003323
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2022.102191?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lioutas, Evagelos D. & Charatsari, Chrysanthi & De Rosa, Marcello, 2021. "Digitalization of agriculture: A way to solve the food problem or a trolley dilemma?," Technology in Society, Elsevier, vol. 67(C).
    2. Filotto, Umberto & Caratelli, Massimo & Fornezza, Fabrizio, 2021. "Shaping the digital transformation of the retail banking industry. Empirical evidence from Italy," European Management Journal, Elsevier, vol. 39(3), pages 366-375.
    3. Douglas A Battleson & Barry C West & Jongwoo Kim & Balasubramaniam Ramesh & Pamela S Robinson, 2016. "Achieving dynamic capabilities with cloud computing: an empirical investigation," European Journal of Information Systems, Taylor & Francis Journals, vol. 25(3), pages 209-230, May.
    4. Filipe Baumeister & Marcelo Werneck Barbosa & Rodrigo Richard Gomes, 2020. "What Is Required to Be a Data Scientist?: Analyzing Job Descriptions With Centering Resonance Analysis," International Journal of Human Capital and Information Technology Professionals (IJHCITP), IGI Global, vol. 11(4), pages 21-40, October.
    5. Reinartz, Werner & Wiegand, Nico & Imschloss, Monika, 2019. "The impact of digital transformation on the retailing value chain," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 350-366.
    6. Ostmeier, Esther & Strobel, Maria, 2022. "Building skills in the context of digital transformation: How industry digital maturity drives proactive skill development," Journal of Business Research, Elsevier, vol. 139(C), pages 718-730.
    7. García-Villaverde, Pedro M. & Rodrigo-Alarcón, Job & Parra-Requena, Gloria & Ruiz-Ortega, María José, 2018. "Technological dynamism and entrepreneurial orientation: The heterogeneous effects of social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 51-64.
    8. Anna Irimiás & Ariel Mitev, 2020. "Change Management, Digital Maturity, and Green Development: Are Successful Firms Leveraging on Sustainability?," Sustainability, MDPI, vol. 12(10), pages 1-13, May.
    9. Mettler, Tobias & Pinto, Roberto, 2018. "Evolutionary paths and influencing factors towards digital maturity: An analysis of the status quo in Swiss hospitals," Technological Forecasting and Social Change, Elsevier, vol. 133(C), pages 104-117.
    10. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    11. Kumar, V. & Anand, Ankit & Song, Hyunseok, 2017. "Future of Retailer Profitability: An Organizing Framework," Journal of Retailing, Elsevier, vol. 93(1), pages 96-119.
    12. Patrice Cottet & Marie-Christine Lichtlé & V. Plichon, 2006. "The role of value in services: a study in a retail environment," Post-Print halshs-00109476, HAL.
    13. Ghosh, Swapan & Hughes, Mat & Hodgkinson, Ian & Hughes, Paul, 2022. "Digital transformation of industrial businesses: A dynamic capability approach," Technovation, Elsevier, vol. 113(C).
    14. Kipper, Liane Mahlmann & Iepsen, Sandra & Dal Forno, Ana Julia & Frozza, Rejane & Furstenau, Leonardo & Agnes, Jéssica & Cossul, Danielli, 2021. "Scientific mapping to identify competencies required by industry 4.0," Technology in Society, Elsevier, vol. 64(C).
    15. Claudio Sassanelli & Sergio Terzi, 2022. "The D-BEST Reference Model: A Flexible and Sustainable Support for the Digital Transformation of Small and Medium Enterprises," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(3), pages 345-370, September.
    16. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    17. Iivari, Netta & Sharma, Sumita & Ventä-Olkkonen, Leena, 2020. "Digital transformation of everyday life – How COVID-19 pandemic transformed the basic education of the young generation and why information management research should care?," International Journal of Information Management, Elsevier, vol. 55(C).
    18. Roman Teichert, 2019. "Digital Transformation Maturity: A Systematic Review of Literature," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(6), pages 1673-1687.
    19. Matthias Hauser & Sebastian A. Günther & Christoph M. Flath & Frédéric Thiesse, 2019. "Towards Digital Transformation in Fashion Retailing: A Design-Oriented IS Research Study of Automated Checkout Systems," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(1), pages 51-66, February.
    20. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    21. Charrad, Malika & Ghazzali, Nadia & Boiteau, Véronique & Niknafs, Azam, 2014. "NbClust: An R Package for Determining the Relevant Number of Clusters in a Data Set," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 61(i06).
    22. Grewal, Dhruv & Roggeveen, Anne L. & Nordfält, Jens, 2017. "The Future of Retailing," Journal of Retailing, Elsevier, vol. 93(1), pages 1-6.
    23. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    24. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    25. Khan, Ikram Ullah, 2022. "How does culture influence digital banking? A comparative study based on the unified model," Technology in Society, Elsevier, vol. 68(C).
    26. Matthess, Marcel & Kunkel, Stefanie, 2020. "Structural change and digitalization in developing countries: Conceptually linking the two transformations," Technology in Society, Elsevier, vol. 63(C).
    27. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    28. Wu, Liang & Liu, Heng & Zhang, Jianqi, 2017. "Bricolage effects on new-product development speed and creativity: The moderating role of technological turbulence," Journal of Business Research, Elsevier, vol. 70(C), pages 127-135.
    29. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    30. Caiado, Rodrigo Goyannes Gusmão & Scavarda, Luiz Felipe & Gavião, Luiz Octávio & Ivson, Paulo & Nascimento, Daniel Luiz de Mattos & Garza-Reyes, Jose Arturo, 2021. "A fuzzy rule-based industry 4.0 maturity model for operations and supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    31. Annarelli, Alessandro & Battistella, Cinzia & Nonino, Fabio & Parida, Vinit & Pessot, Elena, 2021. "Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    32. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    33. Barrutia, Jose M. & Echebarria, Carmen, 2021. "Effect of the COVID-19 pandemic on public managers’ attitudes toward digital transformation," Technology in Society, Elsevier, vol. 67(C).
    34. Guillermo Rodríguez-Abitia & Graciela Bribiesca-Correa, 2021. "Assessing Digital Transformation in Universities," Future Internet, MDPI, vol. 13(2), pages 1-16, February.
    35. Jarosław Brodny & Magdalena Tutak, 2021. "Assessing the level of digital maturity of enterprises in the Central and Eastern European countries using the MCDM and Shannon’s entropy methods," PLOS ONE, Public Library of Science, vol. 16(7), pages 1-38, July.
    36. Fletcher, Gordon & Griffiths, Marie, 2020. "Digital transformation during a lockdown," International Journal of Information Management, Elsevier, vol. 55(C).
    37. Dekimpe, Marnik G., 2020. "Retailing and retailing research in the age of big data analytics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 3-14.
    38. Jiang, Yangyang & Stylos, Nikolaos, 2021. "Triggers of consumers’ enhanced digital engagement and the role of digital technologies in transforming the retail ecosystem during COVID-19 pandemic," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    39. Cruz-Cárdenas, Jorge & Zabelina, Ekaterina & Guadalupe-Lanas, Jorge & Palacio-Fierro, Andrés & Ramos-Galarza, Carlos, 2021. "COVID-19, consumer behavior, technology, and society: A literature review and bibliometric analysis," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    40. Rafael, Lizarralde Dorronsoro & Jaione, Ganzarain Epelde & Cristina, López & Ibon, Serrano Lasa, 2020. "An Industry 4.0 maturity model for machine tool companies," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    41. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    42. Alsufyani, Nujud & Gill, Asif Qumer, 2022. "Digitalisation performance assessment: A systematic review," Technology in Society, Elsevier, vol. 68(C).
    43. Marcelo Werneck Barbosa & Marcelo Bronzo Ladeira & Paulo Renato de Sousa & Marcos Paulo Valadares de Oliveira, 2022. "Supply chain collaboration and organisational performance: the effects of big data analytics capabilities, technological dynamism, and competitive intensity," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 13(4), pages 358-391.
    44. Pantano, Eleonora & Priporas, Constantinos-Vasilios & Stylos, Nikolaos, 2018. "Knowledge Push Curve (KPC) in retailing: Evidence from patented innovations analysis affecting retailers' competitiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 150-160.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qi, Fengyu & Guo, Dong & Xu, Yaping & Liu, Xiaoxue & Liu, Pengzhen & Xie, Youzhi, 2024. "How does circulation industry agglomeration help close the income gap between urban and rural areas? — Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    2. Winata, Robbie Kurniawan & Soekarno, Subiakto, 2024. "Literature Review on Digitalization and Financial Performance," OSF Preprints my9fk, Center for Open Science.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    2. Fleury, Afonso & Fleury, Maria Tereza Leme & Oliveira, Luis & Leao, Pablo, 2024. "Going digital EMNEs: The role of digital maturity capability," International Business Review, Elsevier, vol. 33(4).
    3. Marino-Romero, Jorge Alberto & Palos-Sánchez, Pedro R. & Velicia-Martín, Félix, 2024. "Evolution of digital transformation in SMEs management through a bibliometric analysis," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    4. Chang-Geun Kim & Oh-Suk Yang, 2024. "Global Companies’ Dynamic Response to Business Environment Uncertainty through Digital Transformation: Sustainable Digital Quality–Customer Value–Market Performance Relationships," Sustainability, MDPI, vol. 16(15), pages 1-32, July.
    5. Ga-Rog Han & Jae-Eun Lee, 2024. "The Moderating Effect of ESG Level in the Relationship between Digital Transformation Capability and Financial Performance: Evidence from Foreign Subsidiaries of Korean Firms," Sustainability, MDPI, vol. 16(9), pages 1-15, April.
    6. Zhu, Xiumei & Li, Yue, 2023. "The use of data-driven insight in ambidextrous digital transformation: How do resource orchestration, organizational strategic decision-making, and organizational agility matter?," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    7. Guo, Bin & Zhang, Jiale & Tan, Ziyan, 2024. "Firm digitalization as strategic response: An integrated model based on the awareness-motivation-capability (AMC) framework," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    8. Liu, Ju & Vigren, Olli, 2024. "Managing Digital Transformation for Innovation: A Multi-Level and Multi-Dimensional Integrated Model for Managers," Papers in Innovation Studies 2024/18, Lund University, CIRCLE - Centre for Innovation Research.
    9. Mishra, Deepa Bhatt & Haider, Imran & Gunasekaran, Angappa & Sakib, Md. Nazmus & Malik, Nishtha & Rana, Nripendra P., 2023. "“Better together”: Right blend of business strategy and digital transformation strategies," International Journal of Production Economics, Elsevier, vol. 266(C).
    10. Chwiłkowska-Kubala, Anna & Cyfert, Szymon & Malewska, Kamila & Mierzejewska, Katarzyna & Szumowski, Witold, 2023. "The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation," Technology in Society, Elsevier, vol. 74(C).
    11. Kroh, Julia & Globocnik, Dietfried & Schultz, Carsten & Holdhof, Frederike & Salomo, Søren, 2024. "Micro-foundations of digital innovation capability – A mixed method approach to develop and validate a multi-dimensional measurement instrument," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    12. Viktora-Jones, Magdalena & Parente, Ronaldo & Drori, Netanel & Zhao, Yue, 2024. "Firm performance drivers within a dynamic emerging market ecosystem," Journal of International Management, Elsevier, vol. 30(1).
    13. Changwei Pang & Qiong Wang, 2024. "How Digital Transformation Promotes Disruptive Innovation? Evidence from Chinese Entrepreneurial Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7788-7818, June.
    14. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    15. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    16. Fan, Zhaobin & Long, Rui & Shen, Zhixuan, 2024. "Regional digitalization, dynamic capabilities and green innovation: Evidence from e-commerce demonstration cities in China," Economic Modelling, Elsevier, vol. 139(C).
    17. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    18. Xiao Han & Menghan Zhang & Yixuan Hu & Yuan Huang, 2022. "Study on the Digital Transformation Capability of Cost Consultation Enterprises Based on Maturity Model," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    19. Levent Gun & Salih Zeki Imamoglu & Hulya Turkcan & Huseyin Ince, 2024. "Effect of Digital Transformation on Firm Performance in the Uncertain Environment: Transformational Leadership and Employee Self-Efficacy as Antecedents of Digital Transformation," Sustainability, MDPI, vol. 16(3), pages 1-17, January.
    20. Pietro Borsano & Veronica Marozzo & Marco Bonaglia & Alberto Minin & Antonio Crupi, 2024. "Digital transformation and digital dynamic capabilities improvement in low-medium technology sector: evidence from Thai family firms," Asian Business & Management, Palgrave Macmillan, vol. 23(5), pages 683-712, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:72:y:2023:i:c:s0160791x22003323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.