Technology use by small retailers: an analytical typology

Purpose This research aims to develop a comprehensive typology to classify small retailers based on their technology adoption levels. The study endeavors to map its observations to Rogers' (1995) innovation diffusion theory and, through further data analysis, seeks to elucidate the motivations behind the use of technology in their daily operations. Design/methodology/approach The methodology involved conducting semi-structured interviews with 79 small retailers in North India. Findings A typology was developed to classify small retailers into four categories based on their level of technology adoption: digital starters, digital performers, digitally evolved and digital masters. Rogers' innovation diffusion theory partially explains the heterogeneity in retailers' responses to technology adoption. Research limitations/implications Firms marketing these technologies could develop and propagate case studies of “Digital Masters” to encourage broader adoption. Social implications Small retailers constitute 80–85% of the retail market in most emerging economies and are often protected by government policies. Promoting technology adoption among these retailers could be a key strategy for enhancing their competitiveness, sustainability and tax revenues. Originality/value This research pioneers the proposal of a typology for classifying small retailers based on their technology use. Additionally, it applies Rogers' diffusion of innovation theory to understand their technology adoption behavior and finds that affordability, as an indispensable prerequisite for technology adoption, fundamentally augments Rogers' diffusion of innovation theory by introducing a critical economic dimension.