Critical Factors of Driving Digital Transformation in Small and Medium-Sized Retailers

Authors

  • Tsung-Yin Ou Department of Marketing and Distribution Management, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan R.O.C.
  • Stephen Donald Strombeck School of Applied AI and Entrepreneurship, Handong Global University, Pohang, Korea.
  • Hsin-Pin Fu Department of Marketing and Distribution Management, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan R.O.C.
  • Yi-Sin Chen Department of Marketing and Distribution Management, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan R.O.C.

DOI:

https://doi.org/10.23055/ijietap.2026.33.3.11473

Keywords:

Digital transformation Critical factors, Multi-Criteria Decision Making, Technology-Organization-Environment, Fuzzy Analytic Hierarchy Process, VlseKriterijumska Optimizacija I Kompromisno Resenje

Abstract

The digital transformation (DT) of firms can enhance competitiveness and operational performance. However, few cases exist regarding the successful DT of small and medium-sized retailers (SMRs). So how can DT be accelerated within these enterprises? To address this question, an integrated evaluation model that combined two Multi-Criteria Decision Making (MCDM) methods was used to find the critical factors (CFs) driving DT in SMRs. Using the Technology-Organization-Environment (TOE) framework, we collected relevant extant literature to establish a three-level hierarchical structure of factors that enterprises have considered in DT. We next obtained information through a survey of top management of SMRs in Taiwan and applied the Fuzzy Analytic Hierarchy Process (FAHP) to determine the weight of each factor. Then, the concept of acceptable advantages of VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) was utilized to objectively determine the eight CFs. These CFs are: establishment of differentiation capabilities, support from senior executives, pressure from peer competition, digital infrastructure, organizational resources, industry characteristics, laws and regulations, and customer requests. This paper found that the environmental context is the driving factor of DT for SMRs rather than the technological context. Based on its other findings, this paper offers practical solutions for SMRs that are seeking to accelerate the DT process. All of these findings have implications for DT solution providers and relevant government entities who have a vested interest in growing their SMR clients/constituents.

Downloads

Published

2026-05-18

How to Cite

Ou, T.-Y., Donald Strombeck, S., Fu, H.-P., & Chen, Y.-S. (2026). Critical Factors of Driving Digital Transformation in Small and Medium-Sized Retailers. International Journal of Industrial Engineering: Theory, Applications and Practice, 33(3). https://doi.org/10.23055/ijietap.2026.33.3.11473

Issue

Vol. 33 No. 3 (2026)

Section

Management of Technology

License

The Author(s) must formally transfer each article's copyright before publication in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated.

You agree that the copyright of your article to be published in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE.

The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgments are given regarding copyright notice and reference to the original publication.

The Author(s) warrant(s) that the article is Author's original work and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and credit the article's sources.

The author also warrants that the article contains no libelous or unlawful statements and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire," the employer or an authorized representative of the employer.

The journal does not provide the author copy of the final paper when it is published. The author(s) can make(s) a subscription to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE if they want to get the final paper that has already been published.

The journal is registered with the Library of Congress (ISSN # 1943-670X). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the journal.

The author reserves patent and trademark rights and the right to use all or part of the information contained in the article in future non-commercial works.