Factors affecting the application of digital technology in supply chain management: A case study of retail businesses in traditional markets in Dong Nai province

Abstract

This study aims to identify and evaluate factors affecting the application of digital technology in supply chain management among retail businesses in traditional markets in Dong Nai province. Using a mixed research method, including in-depth interviews with 20 business owners and 5 industry experts, along with a survey of 200 retail businesses selected from 137 markets in the province, the study identifies five main factors: the level of digital technology adoption, technological capacity of businesses, support from suppliers, implementation costs, and business environment. The analysis results reveals that the level of digital technology adoption (β = 0,409), support from suppliers (β = 0,256), and technological capacity of businesses (β = 0,247) are the three most significant factors affecting adoption. The research model explains 68.3% of the variation in digital technology application. The study also indicates that businesses are facing many challenges in applying digital technology, with only 15% using simple inventory management software and 2% possessing their own e-commerce platform. Based on these results, the study proposes several solutions to promote the application of digital technology in supply chain management for retail businesses in traditional markets, including raising awareness, training human resources, developing suitable technology products, and support policies from local authorities, all aiming to enhance competitiveness in the context of digital transformation.