A Study on the Role of Digital Technology in Improving Supply Chain Efficiency Among Retailers in Nagapattinam
DOI:
https://doi.org/10.64137/31079423/IJEBMR-V2I2P112Keywords:
Digital Technology, Supply Chain Efficiency, Retail Sector, Nagapattinam, Digital Infrastructure Adoption, Technology-Driven Inventory Management, Data Analytics, Decision Support SystemsAbstract
Retail businesses in India’s semi-urban districts increasingly face pressure to modernise their logistics and stock-handling practices, yet surprisingly little field-level evidence exists on whether investing in digital tools actually pays off for smaller merchants. This paper set out to investigate that question by surveying 150 retailers spread across grocery, electronics, apparel, and general merchandise shops in Nagapattinam, a coastal district in southern Tamilnadu. Each participant responded to a structured questionnaire built around a five-point Likert scale, covering four constructs: Digital Infrastructure Adoption, Technology-Driven Inventory Management, Data Analytics and Decision Support, and Supply Chain Efficiency. The instrument demonstrated strong reliability, returning an overall Cronbach’s Alpha of 0.857. Pearson correlation tests uncovered statistically significant positive links between every independent variable and supply chain efficiency; the tightest association was with Technology-Driven Inventory Management (r = 0.256, p = 0.002). A multiple regression model incorporating all three predictors proved significant at the one-per-cent level (F = 6.335, p < 0.001) and accounted for 11.5 per cent of the variance in the outcome measure. Within that model, Technology-Driven Inventory Management (β = 0.192, p = 0.019) and Digital Infrastructure Adoption (β = 0.177, p = 0.030) emerged as individually significant drivers, whereas Data Analytics and Decision Support fell just short of the conventional threshold (β = 0.119, p = 0.143). A chi-square test found no meaningful link between the retailer’s age group and the efficiency category achieved (χ² = 7.539, p = 0.480). Taken together, the results confirm that digital technology adoption does lift supply chain performance in a semi-urban retail setting, though the modest effect size underscores that technology alone is not a silver bullet. The paper closes with practical recommendations—ranging from subsidised connectivity schemes to hands-on digital-skills workshops—that policymakers and trade associations can pursue to accelerate this transformation.
References
[1] P. Agrawal and R. Narain, “Digital supply chain management: An Overview,” IOP Conference Series: Materials Science and Engineering, vol. 455, no. 1, p. 012074, Dec. 2018, doi: https://doi.org/10.1088/1757-899x/455/1/012074.
[2] M. Ali et al., “Digital transformation and supply chain agility: The moderating role of organisational culture,” Int. J. Oper. Prod. Manag., vol. 44, no. 3, pp. 415–438, 2024.
[3] S. Bag, S. Gupta, and S. Kumar, “Industry 4.0 adoption and 10R advance manufacturing capabilities for sustainable development,” International Journal of Production Economics, vol. 231, p. 107844, Jan. 2021, doi: https://doi.org/10.1016/j.ijpe.2020.107844.
[4] M. Bahrami et al., “Big data analytics and supply chain decision making: The role of data-driven insights,” J. Bus. Res., vol. 148, pp. 110–124, 2022.
[5] Bharadwaj, O. A. El Sawy, P. A. Pavlou, and N. Venkatraman, “Digital Business Strategy: Toward a Next Generation of Insights,” MIS Quarterly, vol. 37, no. 2, pp. 471–482, Feb. 2013,
[6] G. Büyüközkan and F. Göçer, “Digital Supply Chain: Literature Review and a Proposed Framework for Future Research,” Computers in Industry, vol. 97, no. 1, pp. 157–177, May 2018, doi: https://doi.org/10.1016/j.compind.2018.02.010.
[7] S. Chatterjee and R. Chaudhuri, “Data analytics for supply chain sustainability and operational efficiency,” J. Clean. Prod., vol. 368, 133079, 2022.
[8] S. Chopra and P. Meindl, Supply Chain Management: Strategy, Planning, and Operation, 6th ed. Boston: Pearson, 2016.
[9] M. M. H. Chowdhury and M. A. Quaddus, “Digital technology, supply chain efficiency, and sustainability,” Sustainability, vol. 13, no. 4, 2051, 2021.
[10] M. Christopher, Logistics and Supply Chain Management, 5th ed. Pearson, 2016.
[11] T. De Vass et al., “IoT and data analytics integration for real-time supply chain monitoring,” Supply Chain Manag., vol. 26, no. 5, pp. 542–559, 2021.
[12] Elnadi, M. H. Gheith, C. Troise, Y. O. Abdallah, and M. A. A. Abdelaziz, “Digital Transformation and Sustainable Supply Chain Performance for Sustainable Development: The Mediating Role of Supply Chain Capabilities,” Sustainable Development, Aug. 2025, doi: https://doi.org/10.1002/sd.70191.
[13] K. A. Fantazy and S. A. A. Tipu, “Digital technology and supply chain performance: The mediating role of inventory optimization,” Ind. Manag. Data Syst., vol. 124, no. 2, pp. 512–530, 2024.
[14] D. Feng, H. Wang, and L. Zhao, “Digital Technologies for Sustainable Supply Chain Performance: Source-Push and Value Chain-Pull Mechanisms,” Sustainability, vol. 17, no. 12, pp. 5524–5524, Jun. 2025, doi: https://doi.org/10.3390/su17125524.
[15] C. L. Karmaker et al., “The impact of digital technology on inventory management in emerging economies,” Int. J. Prod. Econ., vol. 260, 108860, 2023.
[16] S. Holloway, “Digital Transformation in Supply Chain Management: A Systematic Literature Review of Trends and Applications,” Nov. 2024, doi: https://doi.org/10.20944/preprints202411.2423.v1.
[17] C. R. Kothari, Research Methodology: Methods and Techniques, 2nd ed. New Delhi: New Age International (P) Limited, Publishers, 2004.
[18] Y. Li et al., “The role of technology-driven inventory management in retail supply chain performance,” Journal of Retail Consumer Service, vol. 78, 103705, 2024.
[19] J. C. Nunnally and I. H. Bernstein, Psychometric Theory, 3rd ed. McGraw-Hill, 1994.
[20] A. Ogunbiyi-Badaru et al., “Digital transformation in supply chains: Improving resilience through AI, blockchain, and IoT,” Journal of Supply Chain Management, vol. 60, no. 2, pp. 45–67, 2024.
[21] G. Qader et al., “Industry 4.0 and supply chain performance: An empirical investigation,” International Journal of Production Research, vol. 60, no. 15, pp. 4720–4738, 2022.
[22] RSIS International Research Group, “Digital transformation and supply chain efficiency: A case of Amazon Inc.,” Research Journal of Business Management, vol. 12, no. 1, pp. 34–48, 2025.
[23] S. Saberi et al., “The role of analytics and decision support systems in retail supply chain transparency,” International Journal of Logistics Management, vol. 33, no. 3, pp. 712–731, 2022.
[24] U. Sekaran and R. Bougie, Research Methods for Business, 7th ed. John Wiley, 2016.
[25] H. Tian et al., “Datafication technologies and supply chain innovativeness,” Technol. Forecast. Soc. Change, vol. 201, 123210, 2024.
[26] L. Wu et al., “Digital technologies and supply chain resilience,” International Journal of Operational Production Management, vol. 44, no. 1, pp. 88–112, 2024.
[27] A. A. Zaid et al., “Digital transformation as a driver of supply chain performance: Evidence from emerging markets,” Journal of Business Logistics, vol. 46, no. 1, pp. 1–22, 2025.
[28] Y. Zhen and H. Shang, “The effect of enterprise digital transformation on supply chain efficiency,” Systems, vol. 13, no. 2, 98, 2025.
