Retail 4.0 adoption and firm performance among Malaysian retailers: the role of enterprise risk management as moderator
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 30 November 2020
Issue publication date: 15 February 2021
Abstract
Purpose
The purpose of this study was to ascertain the determinants of firm performance for Malaysian retailers.
Design/methodology/approach
An online survey was conducted to collect responses from members of the Malaysian Retailers' Chain Association. A total of 126 responses were obtained. Data analysis was done by using the PLS-SEM method.
Findings
The results of the study indicate that Retail 4.0 adoption is able to improve retailers' performance as-a-whole by improving the four perspectives of firm performance as given in the Balanced Scorecard, i.e. the finance perspective, the customer perspective, the internal processes' perspective and also learning and growth perspective. Further, enterprise risk management was found to have a positive moderating effect on retailers' performance as-a-whole and also on the finance and customer perspectives of performance.
Research limitations/implications
The study was conducted only in Malaysia and so, it might be geographically limited. Besides, it is cross-sectional in nature and therefore, the impact might be different if the study had been conducted over a longer period.
Practical implications
This study provides a useful framework for retailers who are seeking to improve firm performance.
Originality/value
This is one of the first studies to show the impact of Retail 4.0 adoption on firm performance. Besides, this is also the first time, enterprise risk management has been introduced as a positive moderator on the impact of technology adoption on retailers' performance.
Keywords
Acknowledgements
This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.
Citation
Sakrabani, P. and Teoh, A.P. (2021), "Retail 4.0 adoption and firm performance among Malaysian retailers: the role of enterprise risk management as moderator", International Journal of Retail & Distribution Management, Vol. 49 No. 3, pp. 359-376. https://doi.org/10.1108/IJRDM-09-2020-0344
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited