Unveiling barriers to O2O technology platform adoption among small retailers in India: insights into the role of digital ecosystem

Abstract

Purpose This study aims to delve into the intricate world of small retailers in India, seeking to understand the impediments/barriers they encounter when trying to embrace online-to-offline (O2O) platforms. It also investigates the potential impact of the digital ecosystem in moderating these barriers. Design/methodology/approach Data from 426 Indian retailers was collected, and structural equation modelling was used to validate the conceptual framework. Findings The findings highlight the importance of addressing distrust and technological anxiety as key barriers to O2O platform adoption. Psychological risk, low-tech orientation, privacy risk, financial risk and social risk were also identified as barriers. Interestingly, performance risk and infrastructure were found to be insignificant in this study. The study indicates that the digital ecosystem does moderate the relationship between psychological risk, performance risk, distrust and technological anxiety with attitude. Research limitations/implications This research holds significant implications for technology adoption, retail management and aggregator platform development in developing nations, notably India. This research draws upon a conceptual framework to deepen the understanding of the O2O technology platform by providing an all-inclusive overview. Originality/value This study breaks new ground by investigating the distinctive obstacles to O2O adoption faced by small retailers in India. By validating the digital ecosystem’s moderating effect, this research yields insights that are context-specific and particularly relevant to the Indian retail landscape. Valuable guidance is offered for researchers, practitioners and policymakers navigating O2O strategy implementation in emerging markets.