Obstacles in transitioning towards omnichannel retailing : A dynamic capability perspective

Sammanfattning: Purpose: In the past two decades, shopping online has grown at a rapid pace, and it had a significant impact on every player in the retail industry from a small retailer to large retail chains. The retailers were forced to redefine the way they operate by managing various channels to reach their consumers. This study explores the obstacles that small retailers are facing while transitioning to omnichannel retailing and identify the capabilities required to overcome the obstacles. Main research questions: 1. What market pressures do small retailers experience with the change in consumer shopping behavior? 2. What are the obstacles that small retailers face while transitioning into omnichannel retailing? 3. Which capabilities assist the small retailers in overcoming the obstacles that they are facing while transitioning into omnichannel retailing? Methodology: This thesis has conducted multiple case studies. In the study, eight small retailers located in Uppsala and Stockholm are the main research participants. After reviewing the relevant literature and collecting empirical data via interviews, we categorized the findings into different themes. And analyzed the empirical findings by using the dynamic capability framework. Findings: The findings from the study reveal that retailers encountered challenges associated with managing channel integration, lack of availability of resources, and skills necessary for transforming into omnichannel retailing, which aligns with findings from the literature. In addition to that, the study found obstacles that small retailers have abundant responsibilities within their small organization. They perceive low returns on technology investments and have complications associated with it. Furthermore, small retailers have limited knowledge of the use of advanced technologies.