Advancing Sustainable Retail Performance Through Digital Transformation and Social Media Use: A Dual-Method FCM–SEM Approach in an Emerging Market

Digital Transformation (DTN) and Social Media Use (SMU) are reshaping how firms pursue competitiveness and sustainability. Yet, their combined effects on Sustainable Business Performance (SBP)—particularly in emerging-market retail contexts—remain insufficiently explored. This study contributes to closing this gap by exploring how DTN and SMU jointly enhance SBP through interrelated organizational capabilities: Collaboration Networks (CNS), Service Innovation (SIN), Customer Experience (CEX), Organizational Resilience (ORE), and Competitive Advantage (CAE). A dual-method design was adopted. In Phase 1, twenty-three experts participated in a three-round electronic Delphi (e-Delphi) process, during which Fuzzy C-Means (FCM) clustering was used to refine forty-seven indicators and validate expert consensus. The integration of e-Delphi and FCM clustering introduces a novel approach to consensus validation, enhancing methodological rigor. In Phase 2, survey data from 982 Thai retail executives were evaluated employing Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The results revealed that DTN and SMU significantly improve SBP when mediated by SIN, CEX, and ORE. Specifically, SMU fosters CNS and SIN, whereas DTN strengthens CEX and CAE. Theoretically, this study integrates the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT); empirically, it provides rare large-scale evidence from Thailand’s retail industry; and practically, it positions DTN as a driving force behind innovation, resilience, and inclusive development consistent aligned with the United Nations Sustainable Development Goals (SDGs).