Explaining digital transformation in the food and beverage sector using a behavioral approach

Abstract

Micro, small, and medium enterprises (MSMEs) have long been the backbones of the economies of developing countries, so efforts are needed to accelerate the recovery of their performance which has slumped due to the COVID-19 pandemic. One possible effort is for MSMEs to carry out digital transformation. This study investigates the relationships between various factors which contribute to digital transformation among the actors of micro, small, and medium enterprises (MSMEs) using the behavioral approach (TRI-TAM). Data was obtained from 360 MSME actors engaged in the food and beverage sector. For analysis purposes, CB-SEM was used. The study results revealed that an optimistic attitude, innovative actions, and perceived ease of use of digital technology will determine business actors’ intentions to carry out digital transformation. Furthermore, their intentions are demonstrated to influence digital transformation behavior. As another result of an optimistic attitude, innovative actions have a positive effect on perceived ease of use of digital technology, while feelings of discomfort and insecurity have a negative effect. Policy recommendations that can be suggested to encourage digital transformation and produce environmentally friendly services and products include providing financial subsidies, tax incentives, training, and mentoring.