IDEAS home Printed from https://ideas.repec.org/a/spr/joamsc/v49y2021i5d10.1007_s11747-021-00778-y.html
   My bibliography  Save this article

How does the adoption of digital payment technologies influence unorganized retailers’ performance? An investigation in an emerging market

Author

Listed:
  • Anirban Adhikary

    (Indian Institute of Management Udaipur)

  • Krishna Sundar Diatha

    (Indian Institute of Management Bangalore)

  • Sourav Bikash Borah

    (Indian Institute of Management Ahmedabad)

  • Amalesh Sharma

    (Texas A&M University)

Abstract

Unorganized retail dominates the retail landscape across emerging markets (EMs) and is undergoing rapid digitalization. However, the extant literature has not explored the impact of digital payment system adoption on unorganized retailer (UR) performance. By conducting three related studies and relying on the tenets of the resource-based view of firms, we show that digital payment technologies’ adoption increases economic performance (i.e., revenue) for a sample of 403 EM URs. This effect is enhanced by such retailers’ prioritization of technological investments and attenuated by their credit facilities. We find that card-based and app-based technologies positively impact UR performance. URs can maximize their performance by adopting two technologies, and there is a synergistic effect between card-based and account-based technologies. On average, adoption increases a UR’s economic performance by 9.6%. We present a nuanced understanding of whether, how much, and which digital payment technologies should be adopted by EM URs.

Suggested Citation

  • Anirban Adhikary & Krishna Sundar Diatha & Sourav Bikash Borah & Amalesh Sharma, 2021. "How does the adoption of digital payment technologies influence unorganized retailers’ performance? An investigation in an emerging market," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 882-902, September.
    • Handle: RePEc:spr:joamsc:v:49:y:2021:i:5:d:10.1007_s11747-021-00778-y
    DOI: 10.1007/s11747-021-00778-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11747-021-00778-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11747-021-00778-y?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. Reinartz, Werner & Dellaert, Benedict & Krafft, Manfred & Kumar, V. & Varadarajan, Rajan, 2011. "Retailing Innovations in a Globalizing Retail Market Environment," Journal of Retailing, Elsevier, vol. 87(S1), pages 53-66.
    2. V. Kumar & Nandini Nim & Amit Agarwal, 0. "Platform-based mobile payments adoption in emerging and developed countries: Role of country-level heterogeneity and network effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-30.
    3. Rebecca Hamilton, 2016. "Consumer-based strategy: using multiple methods to generate consumer insights that inform strategy," Journal of the Academy of Marketing Science, Springer, vol. 44(3), pages 281-285, May.
    4. Bart J. Bronnenberg & Paul B. Ellickson, 2015. "Adolescence and the Path to Maturity in Global Retail," Journal of Economic Perspectives, American Economic Association, vol. 29(4), pages 113-134, Fall.
    5. Piyush Sinha & Srikant Gokhale & Saurabh Rawal, 2015. "Online Retailing Paired with Kirana—A Formidable Combination for Emerging Markets," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 317-324, December.
    6. Oecd, 2013. "Electronic and Mobile Commerce," OECD Digital Economy Papers 228, OECD Publishing.
    7. V. Kumar & Nandini Nim & Amalesh Sharma, 2019. "Correction to: Driving growth of Mwallets in emerging markets: a retailer’s perspective," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 770-770, July.
    8. Casado-Aranda, Luis-Alberto & Liébana-Cabanillas, Francisco & Sánchez-Fernández, Juan, 2018. "A Neuropsychological Study on How Consumers Process Risky and Secure E-payments," Journal of Interactive Marketing, Elsevier, vol. 43(C), pages 151-164.
    9. Krassie Petrova & Bo Wang, 2013. "Retailer Adoption of Mobile Payment: A Qualitative Study," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 11(4), pages 70-89, October.
    10. Kinshuk Jerath & S. Sajeesh & Z. John Zhang, 2016. "A Model of Unorganized and Organized Retailing in Emerging Economies," Marketing Science, INFORMS, vol. 35(5), pages 756-778, September.
    11. John Roberts & Ujwal Kayande & Rajendra K. Srivastava, 2015. "What’s Different About Emerging Markets, and What Does it Mean for Theory and Practice?," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 245-250, December.
    12. Sourav Bikash Borah & Srinivas Prakhya & Amalesh Sharma, 2020. "Leveraging service recovery strategies to reduce customer churn in an emerging market," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 848-868, September.
    13. Yansong Hu & Christophe Van den Bulte, 2014. "Nonmonotonic Status Effects in New Product Adoption," Marketing Science, INFORMS, vol. 33(4), pages 509-533, July.
    14. Leo Van Hove & Farhod P. Karimov, 2016. "The role of risk in e-retailers’ adoption of payment methods: evidence for transition economies," Electronic Commerce Research, Springer, vol. 16(1), pages 27-72, March.
    15. Kumar, V. & Sunder, Sarang & Sharma, Amalesh, 2015. "Leveraging Distribution to Maximize Firm Performance in Emerging Markets," Journal of Retailing, Elsevier, vol. 91(4), pages 627-643.
    16. Morgan, Neil A. & Slotegraaf, Rebecca J. & Vorhies, Douglas W., 2009. "Linking marketing capabilities with profit growth," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 284-293.
    17. Alok R. Saboo & Anindita Chakravarty & Rajdeep Grewal, 2016. "Organizational Debut on the Public Stage: Marketing Myopia and Initial Public Offerings," Marketing Science, INFORMS, vol. 35(4), pages 656-675, July.
    18. Massoud Karshenas & Paul L. Stoneman, 1993. "Rank, Stock, Order, and Epidemic Effects in the Diffusion of New Process Technologies: An Empirical Model," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 503-528, Winter.
    19. Laukkanen, Tommi, 2016. "Consumer adoption versus rejection decisions in seemingly similar service innovations: The case of the Internet and mobile banking," Journal of Business Research, Elsevier, vol. 69(7), pages 2432-2439.
    20. V. Kumar & Nandini Nim & Amalesh Sharma, 2019. "Driving growth of Mwallets in emerging markets: a retailer’s perspective," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 747-769, July.
    21. Inman, J. Jeffrey & Nikolova, Hristina, 2017. "Shopper-Facing Retail Technology: A Retailer Adoption Decision Framework Incorporating Shopper Attitudes and Privacy Concerns," Journal of Retailing, Elsevier, vol. 93(1), pages 7-28.
    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. Alexey I. Shinkevich & Svetlana S. Kudryavtseva & Vera P. Samarina, 2023. "Ecosystems as an Innovative Tool for the Development of the Financial Sector in the Digital Economy," JRFM, MDPI, vol. 16(2), pages 1-15, January.
    2. Vikram Choudhary & Rajesh K Aithal, 2023. "Low-cost Technologies for Kirana (Small) Retail: A Game Changer?," IIM Kozhikode Society & Management Review, , vol. 12(2), pages 250-258, July.
    3. Malobi Mukherjee & Jacob Wood, 2021. "Consolidating Unorganised Retail Businesses through Digital Platforms: Implications for Achieving the UN Sustainable Development Goals," Sustainability, MDPI, vol. 13(21), pages 1-28, October.
    4. Sharma, Amalesh & Pathak, Surya & Borah, Sourav Bikash & Adhikary, Anirban, 2022. "Collaboration strategies in buyer-supplier relational (BSR) networks and sustainable firm performance: A trade-off story," International Journal of Production Economics, Elsevier, vol. 253(C).

    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. Malobi Mukherjee & Jacob Wood, 2021. "Consolidating Unorganised Retail Businesses through Digital Platforms: Implications for Achieving the UN Sustainable Development Goals," Sustainability, MDPI, vol. 13(21), pages 1-28, October.
    2. Patil, Ashutosh & Borle, Sharad & Singh, Siddharth, 2023. "An empirical investigation of unique traits of retailing industry in emerging economies: The perspective of consumer-packaged goods manufacturers," Journal of Business Research, Elsevier, vol. 154(C).
    3. Wang, Xin (Shane) & Ryoo, Jun Hyun (Joseph) & Bendle, Neil & Kopalle, Praveen K., 2021. "The role of machine learning analytics and metrics in retailing research," Journal of Retailing, Elsevier, vol. 97(4), pages 658-675.
    4. 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.
    5. S. Arunachalam & S. Cem Bahadir & Sundar G. Bharadwaj & Rodrigo Guesalaga, 2020. "New product introductions for low-income consumers in emerging markets," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 914-940, September.
    6. Vikram Choudhary & Rajesh K Aithal, 2023. "Low-cost Technologies for Kirana (Small) Retail: A Game Changer?," IIM Kozhikode Society & Management Review, , vol. 12(2), pages 250-258, July.
    7. Anindita Chakravarty & Alok R. Saboo & Guiyang Xiong, 2022. "Marketing's and Operations' Roles in Product Recall Prevention: Antecedents and Consequences," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1174-1190, March.
    8. Lin, Marta Yuan-Chen & Nguyen, Tessa Tien & Cheng, Edward Ying-Lun & Le, Angelina Nhat Hanh & Cheng, Julian Ming Sung, 2022. "Proximity marketing and Bluetooth beacon technology: A dynamic mechanism leading to relationship program receptiveness," Journal of Business Research, Elsevier, vol. 141(C), pages 151-162.
    9. Tower, Annette P. & Hewett, Kelly & Saboo, Alok, 2021. "Reexamining the tradeoff between value creation and value appropriation: The role of internal organizational resources vs. External strategic international alliances," Journal of Business Research, Elsevier, vol. 123(C), pages 302-312.
    10. Sreten Ćuzović & Svetlana Sokolov Mladenović & Djordje Ćuzović, 2017. "The Impact of Retail Formats on the Development of Food Retailing," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(1), pages 11-26.
    11. Anshu, Kumari & Shankar, Amit & Behl, Abhishek & Pereira, Vijay & Laker, Benjamin, 2022. "Impact of barriers of value co-creation on consumers' innovation resistance behavior: Investigating the moderation role of the DART model," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    12. V. Kumar & Nandini Nim & Amit Agarwal, 2021. "Platform-based mobile payments adoption in emerging and developed countries: Role of country-level heterogeneity and network effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1529-1558, October.
    13. Marnik G. Dekimpe & Barbara Deleersnyder, 2018. "Business cycle research in marketing: a review and research agenda," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 31-58, January.
    14. Youssef Boulaksil & M. Jaafar Belkora, 2017. "Distribution Strategies Toward Nanostores in Emerging Markets: The Valencia Case," Interfaces, INFORMS, vol. 47(6), pages 505-517, December.
    15. V. Kumar & Nandini Nim & Amit Agarwal, 0. "Platform-based mobile payments adoption in emerging and developed countries: Role of country-level heterogeneity and network effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-30.
    16. Pizzi, Gabriele & Scarpi, Daniele, 2020. "Privacy threats with retail technologies: A consumer perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    17. Ajimon George & Prajod Sunny, 2021. "Developing a Research Model for Mobile Wallet Adoption and Usage," IIM Kozhikode Society & Management Review, , vol. 10(1), pages 82-98, January.
    18. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    19. Guissoni, Leandro Angotti & Rodrigues, Jonny Mateus & Zambaldi, Felipe & Neves, Marcos Fava, 2021. "Distribution effectiveness through full- and self-service channels under economic fluctuations in an emerging market," Journal of Retailing, Elsevier, vol. 97(4), pages 545-560.
    20. Zied Mani & Inès Chouk, 2018. "Smart banking: Why it's important to take into account consumers' concerns?," Working Papers halshs-01678806, HAL.

    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:spr:joamsc:v:49:y:2021:i:5:d:10.1007_s11747-021-00778-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.