IMPACT OF DIGITALISATION ON FINANCIAL PERFORMANCE WITH MEDIATING EFFECT OF MARKET EXPANSION AND CUSTOMER SERVICE: A STUDY OF SELECT RETAIL BUSINESSES IN INDIA

This paper aims to analyse what impact does the level of digitalisation of the businesses has on its financial parameters which include sales and profits. The scope of the study is confined to the retailers with investments similar to micro and small enterprises as per MSMED Act, 2006. For the purpose of this study, online selling is considered as the basic criteria for coming into the ambit of a digitalised business. A primary study has been conducted with respondents including owners or managers of the businesses who were responsible for bringing about digitalisation of their businesses. A final sample of size 253 respondents was used for data analysis. The relationship between level of digitalisation and sales were partially mediated through market expansion and showed no mediation of customer service. The level of digitalisation had no impact on the profitability of the small scale retailers. This paper highlights the ground level reality of Indian small scale businesses and the impact of digitalisation. The findings can help formulate effective policies for building a stronger domestic business footing. The work is a contribution in understanding how