Enhancing digitalization and servitization in Vietnamese small, independent retailers

Abstract

<p><span style="font-weight: 400;">The rise of competition and shifting consumer behavior forces small independent retailers in Vietnam to seek new survival strategies. The relationship between digitalization (DG) and servitization (ST), along with their driving factors, has received scant research attention within small independent retailer contexts. This study examines the impact of Entrepreneurial Orientation (EO) and Entrepreneurial Competence (EC) on digitalization and servitization through mediating mechanisms of innovation exploration (ER) and innovation exploitation (ET), with Perceived Value of Digital Servitization (PVDS) and Competitive Pressure (CP) serving as moderators. Survey data from 386 small independent retailers in Ho Chi Minh City were analyzed using PLS-SEM. Results show that both EO and EC foster ER and ET, with ET exerting a more substantial effect in driving DG and ST. Moreover, DG positively contributes to ST, while PVDS amplifies ER-DG and ET-DG links, and CP does not exhibit significant moderation. Besides a theoretical contribution, this study offers practical insights for small independent retailers that digitalization and servitization should be treated as interdependent pillars. </span></p>