Purpose This study examines the effect of digital technology adoption on the performance of dairy cooperatives. It assesses the advantages and effects of digitalisation on intermediary variables, which subsequently influence outcome variables such as financial, operational, and firm-level employee performance. Design/methodology/approach The research employed a quantitative, explanatory design, collecting data using a questionnaire survey. A structured questionnaire was administered to 996 senior officials of dairy cooperative societies of South India. SmartPLS was used for structural equation modelling. An importance-performance matrix analysis (IPMA) of path modelling was conducted to evaluate the effect of exogenous variables. Findings The study’s findings indicate that digitalisation is a crucial factor influencing organisational performance, encompassing financial, operational, and employee performance. Digitalisation directly influences the integration of digital infrastructure, human resources, business processes, marketing and sales, external stakeholders, supply chain and logistics, and strategic decision-making. Research limitations/implications This study evaluates a theoretically relevant, refined conceptualisation of digitalisation performance effects. It also illustrates an improvement in the digitalisation performance network, emphasising the specific relationships between digitalisation and organisational performance outcomes, thereby making several significant contributions to the field. The primary contribution of this research is the unified model, which incorporates operational and managerial practice dimensions along with various performance outcomes—financial, operational, and firm-level employee performances. This study demonstrates the interplay of factors in digitalisation that contribute to the enhanced performance of dairy cooperatives. We extend the findings of Abou-Foul et al. (2021), Alma et al. (2018), Alzadjali and Elbanna (2020), Caldera et al. (2021), Hughes et al. (2006) and Redoli et al. (2008) by illustrating that enhanced financial performance in dairy cooperatives is predominantly achieved through the proficient digitalisation of operational and managerial practices, with optimal results observed in the areas of ISCLM and IPI. Unlike previous studies in various industries by Bhatt et al. (2019), Lopez-Nicolas and Soto-Acosta (2010), and Mohd Salleh et al. (2017), which do not examine the extent of adoption, the present study has extensively taken into account the level and degree of digitalisation. Practical implications Digitalisation is of utmost importance in financial, operational, and employee performance, emphasising its pivotal role in the success of contemporary organisations (Martinez, 2019). The research emphasises the significance of supply chain and logistics management (ISCLM) for optimising operational performance (Zhang et al., 2022), whereas marketing and sales integration (IMS) and human resources integration (IHR) need improvement. These data may inform strategic decision-making by emphasising high-performance sectors and rectifying underperforming regions, therefore enhancing operational efficiency and staff performance. The study emphasises the necessity of prioritising digital transformation initiatives, leveraging the predictive capabilities of digitalisation for strategic decision-making, and perpetually enhancing performance through targeted management efforts in areas characterised by high impact and high performance (Bresciani et al., 2021). Digitalisation exerts diverse impacts on intermediary variables, including ISCLM and IPI. Managers ought to prioritise investments in digital tools that directly influence these factors, such as ISCLM and IPI, due to their substantial effect sizes. Social implications The study underscores the importance of digital adoption in the dairy cooperative industry, highlighting its practical benefits such as improved operational efficiency, strategic decision-making, and workforce development. Digital tools can optimise supply chains, inventory management, and finance procedures, enhancing overall performance. Managers can use predictive analytics to make informed business decisions and mitigate risks. Training programs and capacity-building activities are crucial for enhancing digital literacy and technical skills among employees. Digitalisation can improve dairy farmers' livelihoods by increasing market access, real-time pricing data, and financial inclusion. Digital marketing and sales channels can reach a wider consumer demographic, enhancing product availability and quality assurance. The research emphasises the need to close the digital divide in rural regions, emphasising education and infrastructure for equitable access to technology. The research highlights the significance of socioeconomic inclusion in capacity-building initiatives and digital literacy education, alongside ethical issues such as data protection and equitable access to digital resources. The implementation techniques may include public-private collaborations and incentives for adoption via metrics of performance associated with technology utilisation. Originality/value This research is the first empirical study on the effects of digitalisation on the dairy cooperative sector in India, although prior studies have addressed digitalisation in other industries. It examines the impact of digitalisation on the perceived organisational performance of dairy cooperatives and the degree of variation within the sector. The model’s predictive capability facilitates managerial recommendations, highlighting the importance of predictive analytics in the dairy sector.
Latha et al. (Tue,) studied this question.