The impact of digital capability in Chinese retail SMEs
Chen, Yongshuai (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025060319540
https://urn.fi/URN:NBN:fi:amk-2025060319540
Tiivistelmä
This thesis research aimed to investigate the impact of digital capability on the operational performance of retail small and medium-sized enterprises (SMEs) in Anhui Province, China. As information technologies advance and internet access expands globally, adopting digital tools has emerged as a critical determinant of organizational success. Nevertheless, Chinese retail SMEs lag in adopting these technologies compared to larger corporations. To address this gap, this thesis systematically examined the influence of the five dimensions of digital capability, digital infrastructure capability, digital information management capability, digital analytics capability, digital operations capability, and digital transformation capability, on the operational activities of retail SME.
This thesis research used a mixed research methods to conduct the empirical research. An online questionnaire was utilized to gather data in the empirical research. The respondents who answered were owners or managers of retail SMEs. The data were analysed quantitatively to produce results, while the qualitative data collected was used for validation of the quantitative analysis.
The results of the thesis research showed that retail SMEs in Anhui Province have a low overall level of digital capability across all dimensions. Further analysis revealed that the effectiveness of various aspects of digital capability in supporting different business operations activities varies, but overall, the positive impact of digital capability on improving operational performance is limited. This research also found that despite a series of government policies and measures to support the digital transformation of SMEs, company continue to face several challenges and opportunities in the process of digital transformation, including insufficient capital investment, limited technology, and a lack of professional talents. Based on this, this thesis proposes several strategic recommendations to enhance the digital capability of retail SMEs, including increasing investment in digital infrastructure, optimizing digital information management processes, strengthening data analytics capability, building a digital operation system, and promoting comprehensive digital transformation.
This thesis research used a mixed research methods to conduct the empirical research. An online questionnaire was utilized to gather data in the empirical research. The respondents who answered were owners or managers of retail SMEs. The data were analysed quantitatively to produce results, while the qualitative data collected was used for validation of the quantitative analysis.
The results of the thesis research showed that retail SMEs in Anhui Province have a low overall level of digital capability across all dimensions. Further analysis revealed that the effectiveness of various aspects of digital capability in supporting different business operations activities varies, but overall, the positive impact of digital capability on improving operational performance is limited. This research also found that despite a series of government policies and measures to support the digital transformation of SMEs, company continue to face several challenges and opportunities in the process of digital transformation, including insufficient capital investment, limited technology, and a lack of professional talents. Based on this, this thesis proposes several strategic recommendations to enhance the digital capability of retail SMEs, including increasing investment in digital infrastructure, optimizing digital information management processes, strengthening data analytics capability, building a digital operation system, and promoting comprehensive digital transformation.