The dark side of retailers regarding digital growth strategies: an exploratory study on augmented reality perception
DOI:
https://doi.org/10.7433/s113.2020.05Keywords:
augmented reality; immersive technologies; retailing; perception; digital strategies; growthAbstract
Purpose of the paper: The present paper aims to investigate retailers’ perception of immersive technology (e.g. augmented reality) to create new growth strategies to expand and internationalize business.
Methodology: This study adopts a qualitative approach, based on a multi-case study methodology. Nine Italian SMEs operating in the furniture and interior design sector were interviewed. After transcribing and translating the interviews, they were coded using an inductive approach.
Results: This study shows that Italian SMEs still have little exposure to the knowledge of technologies, and thus a higher resistance to adopting digital growth strategies in their business.
Research limitations: This study is exploratory in nature and based on a sample of nine SMEs in the Italian cultural context. Therefore, further research could extend our findings, by carrying out a cross-cultural analysis in comparison with other countries.
Practical implications: This study highlights the importance for SMEs to understand and introduce digital growth strategies to create competitive advantages on the market and an enhanced experience for consumers. Using technologies, SMEs should be able to maintain a growth orientation with a high level of networking with international corporations to be more flexible towards market advancements and changes.
Originality of the paper: This paper provides an original view on retailers’ perception of immersive technologies to create digital growth for SMEs, by highlighting some new challenges that SMEs must face to successfully compete in a digital scenario.
References
ABELL J., GRUBER H., MAUTNER G., MYERS G. (2008), Qualitative discourse analysis in the social sciences, Macmillan International Higher Education, New York.
BĂEŞU C., BEJINARU R. (2020), “Knowledge management strategies for leadership in the digital business environment”, in Proceedings of the International Conference on Business Excellence, vol. 14, n. 1, pp. 646-656.
BAIER D., RESE A., SCHREIBER S. (2015), “Analyzing online reviews to measure augmented reality acceptance at the point of sale: the case of IKEA”, In Successful Technological Integration for Competitive Advantage in Retail Settings (pp. 168-189). IGI Global.
BARLOW A.K., SIDDIQUI N.Q., MANNION M. (2004), “Developments in information and communication technologies for retail marketing channels”, International Journal of Retail and Distribution Management, vol. 32, n. 3, pp. 157-163.
BECK N., RYGL D. (2015), “Categorization of multiple channel retailing in Multi-, Cross-, and Omni‐Channel Retailing for retailers and retailing”, Journal of Retailing and Consumer Services, vol. 27, n. November 2015, pp. 170-178.
BEJINARU R., IORDACHE S. (2010), “Knowledge channeling in the learning organization”, 5th International Conference on Business Excellence, 15-16 October 2010 Brașov, Infomarket Publishing House, Romania, p 59.
BEJINARU R., PRELIPCEAN G. (2017), “Successful strategies to be learnt from world-class universities”, in Proceedings of the International Conference on Business Excellence, vol. 11, n. 1, pp. 350-358.
BELL J., LOANE S. (2010). “New-wave’ global firms: Web 2.0 and SME internationalisation”, Journal of Marketing Management, vol. 26, n. 3-4, pp. 213-229.
BETTUCCI M., D’AMATO I., PEREGO A., POZZOLI E. (2016), Omnicanalità: Assicurare continuità all’esperienza del cliente, EGEA, Milano.
BOCCARDELLI P., FONTANA F., MANZOCCHI S. (2007), La diffusione dell’ICT nelle piccole e medie imprese, Luiss University Press, Rome.
BONETTI F., WARNABY G., QUINN L. (2018), “Augmented reality and virtual reality in physical and online retailing: A review, synthesis and research agenda”, in Augmented reality and virtual reality (pp. 119-132). Springer, Cham.
CHATTELL A. (2016), Creating value in the digital era: Achieving success through insight, imagination and innovation, Springer.
CHEW E., SEMMELROCK-PICEJ M.T., NOVAK A. (2013), “Value co-creation in the organizations of the future”, in Proceedings of the European Conference on Management, Leadership and Governance (pp. 16-23).
COSTA V., MONTEIRO S. (2016), “Key knowledge management processes for innovation: a systematic literature review”, VINE Journal of Information and Knowledge Management Systems, vol. 46, n. 3, pp. 386-410.
CRIVELLO S. (2015), “Urban policy mobilities: the case of Turin as a smart city”, European Planning Studies, vol. 23, n. 5, pp. 909-921.
CRUZ E., ORTS-ESCOLANO S., GOMEZ-DONOSO F., RIZO C., RANGEL J.C., MORA H., CAZORLA M. (2018), “An augmented reality application for improving shopping experience in large retail stores”, Virtual Reality, vol. 23, pp. 1-11.
DEY A., BILLINGHURST M., LINDEMAN R.W., SWAN J. (2018), “A systematic review of 10 years of augmented reality usability studies: 2005 to 2014”, Frontiers in Robotics and AI, vol. 5, p. 37.
DHOLAKIA R.R., UUSITALO O. (2002), “Switching to electronic stores: consumer characteristics and the perception of shopping benefits”, International Journal of Retail and Distribution Management, vol. 30, n. 10, pp. 459-469.
EISENHARDT K.M. (1989), “Building theories from case study research”, Academy of Management Review, vol. 14, n. 4, pp. 532-550.
GINTERS E., MARTIN-GUTIERREZ J. (2013), “Low cost augmented reality and RFID application for logistics items visualization”, Procedia Computer Science, vol. 26, pp. 3-13.
GREWAL D., ROGGEVEEN A.L., NORDFÄLT J. (2017), “The future of retailing”, Journal of Retailing, vol. 93, n. 1, pp. 1-6.
GRZEGORCZYK T., SLIWINSKI R., KACZMAREK J. (2019), “Attractiveness of augmented reality to consumers”, Technology Analysis and Strategic Management, pp. 1-13.
HAMILL J., GREGORY K. (1997), “Internet marketing in the internationalisation of UK SMEs”, Journal of Marketing Management, vol. 13, n. 1-3, pp. 9-28.
HAMILTON R., THOMPSON D., BONE S., CHAPLIN L.N., GRISKEVICIUS V., GOLDSMITH K., PIFF P. (2019). “The effects of scarcity on consumer decision journeys”, Journal of the Academy of Marketing Science, vol. 47, n. 3, pp. 532-550.
HARTLEY J.F. (1994), “Case studies in organizational research”, in Cassell C. and Symon G. (edited by), Qualitative methods in organizational research: A practical guide, pp. 208-229, London/Thousand Oaks/New Delhi: Sage.
HARTLEY R.I., STURM P. (1997), “Triangulation”, Computer vision and image understanding, vol. 68, n. 2, pp. 146-157.
HASSINGER E. (1959), “Stages in the adoption process”, Rural Sociology, vol. 24, n. 1, p. 52.
HERVÉ A., SCHMITT C., BALDEGGER R. (2020). “Internationalization and Digitalization: Applying digital technologies to the internationalization process of small and medium-sized enterprises”, Technology Innovation Management Review, vol. 10, n. 7, pp. 28-40.
HILKEN T., HELLER J., CHYLINSKI M., KEELING D.I., MAHR D., DE RUYTER K. (2018), “Making omnichannel an augmented reality: the current and future state of the art”, Journal of Research in Interactive Marketing, vol. 12, n. 4, pp. 509-523.
HOFSTEDE G. (2011), “Dimensionalizing cultures: The Hofstede model in context”, Online Readings in Psychology and Culture, vol. 2, n. 1, p. 8.
HUANG T.L., LIAO S. (2015), “A model of acceptance of augmented-reality interactive technology: the moderating role of cognitive innovativeness”, Electronic Commerce Research, vol. 15, n. 2, pp. 269-295.
INMAN J.J., NIKOLOVA H. (2017), “Shopper-facing retail technology: a retailer adoption decision framework incorporating shopper attitudes and privacy concerns”, Journal of Retailing, vol. 93, n. 1, pp. 7-28.
IRAWATI S., GREEN S., BILLINGHURST M., DUENSER A., KO H. (2006), “An evaluation of an augmented reality multimodal interface using speech and paddle gestures”, i n International Conference on Artificial Reality and Telexistence (pp. 272-283). Springer, Berlin, Heidelberg.
KOMNINOS N. (2016), “Smart environments and smart growth: connecting innovation strategies and digital growth strategies”, International Journal of Knowledge-Based Development, vol. 7, n. 3, pp. 240-263.
LEE J., RYU M.H., LEE D. (2019), “A study on the reciprocal relationship between user perception and retailer perception on platform-based mobile payment service”, Journal of Retailing and Consumer Services, vol. 48, n. 2019, pp. 7-15.
LOWE B., ALPERT F. (2015), “Forecasting consumer perception of innovativeness”, Technovation, vol. 45, n. 2015, pp. 1-14.
LUNDBLAD J.P. (2003), “A review and critique of Rogers’ diffusion of innovation theory as it applies to organizations”, Organization Development Journal, vol. 21, n. 4, p. 50.
MARKUS M.L. (1983), “Power, politics, and MIS implementation”, Communications of the ACM, vol. 26, n. 6, pp. 430-444.
MASON R.G. (1962), Information source use in the adoption process, Graduate Division Special Programs: Mass Communications Research, Stanford University.
MERISALO M., MAKKONEN T., INKINEN T. (2013), “Creative and knowledge-intensive teleworkers’ relation to e-capital in the Helsinki metropolitan area”, International Journal of Knowledge-Based Development, vol. 4, n. 3, pp. 204-221.
MILES M.B., HUBERMAN A.M. (1984), “Drawing valid meaning from qualitative data: Toward a shared craft”, Educational researcher, vol. 13, n. 5, pp. 20-30.
MONAGHAN S., TIPPMANN E., COVIELLO N. (2020). “Born digitals: Thoughts on their internationalization and a research agenda”, Journal of International Business Studies, vol. 51, n. 1, pp. 11-22.
MORSCHETT D., SWOBODA B., FOSCHT T. (2005), “Perception of store attributes and overall attitude towards grocery retailers: The role of shopping motives”, The International Review of Retail, Distribution and Consumer Research, vol. 15, n. 4, pp. 423-447.
NALDI L., ACHTENHAGEN L. (2011), “International corporate venturing: an empirical study of SMEs pursuing opportunities in international markets”, Sinergie Italian Journal of Management, n. 71, pp. 35-51.
NETWORKED SOCIETY LAB (2014a), The Disruption of Industry Logics, Telefonaktiebolaget LM Ericsson.
NETWORKED SOCIETY LAB (2014b), Traditionals in Transformation, Telefonaktiebolaget LM Ericsson.
NETWORKED SOCIETY LAB (2014c), Models of Digital Operators, Telefonaktiebolaget LM Ericsson.
OPPEWAL H., TIMMERMANS H. (1999), “Modeling consumer perception of public space in shopping centers”, Environment and Behavior, vol. 31, n. 1, pp. 45-65.
PANTANO E. (2010), “New technologies and retailing: Trends and directions”, Journal of Retailing and Consumer Services, vol. 3, n. 17, pp. 171-172.
PANTANO E. (2015), Successful technological integration for competitive advantage in retail settings, IGI Global, Hershey PA, USA.
PANTANO E., PIZZI G., SCARPI D., DENNIS C. (2020). “Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak”, Journal of Business Research, vol. 116, pp. 209-213.
PANTANO E., RESE A., BAIER D. (2017), “Enhancing the online decision-making process by using augmented reality: A two country comparison of youth markets”, Journal of Retailing and Consumer Services, vol. 38, n. September 2017, pp. 81-95.
PENCO L., SERRAVALLE F., PROFUMO G., VIASSONE M. (2020), “Mobile augmented reality as an internationalization tool in the “Made In Italy” food and beverage industry”, Journal of Management and Governance, in press, pp. 1-31.
PHILLIPS H., BRODERICK A., THOMPSON P., BRODERICK A., THOMPSON P. (1997), “Perception, selectivity and decision making at the point of sale”, The International Review of Retail, Distribution and Consumer Research, vol. 7, n. 1, pp. 79-89.
PORTER M.E., HEPPELMANN J.E. (2014), “How smart, connected products are transforming competition”, Harvard Business Review, vol. 92, n. 11, pp. 64-88.
POUSHNEH, A. (2018), “Augmented reality in retail: A trade-off between user’s control of access to personal information and augmentation quality”, Journal of Retailing and Consumer Services, vol. 41, n. March 2018, pp. 169-176.
REICHWALD R., SEIFERT S., WALCHER D. (2004), “Customers as part of value webs: Towards a framework for webbed customer innovation tools”, In 37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the (pp. 10-pp). IEEE.
RENKO S., DRUZIJANIC M. (2014), “Perceived usefulness of innovative technology in retailing: Consumers' and retailers' point of view”, Journal of Retailing and Consumer Services, vol. 21, n. 5, pp. 836-843.
RIGBY D. (2011), “The future of shopping”, Harvard Business Review, vol. 89, n. 12, pp. 65-76.
ROBBINS P., AYDEDE M. (2009), “A short primer on situated cognition”, in Robbins, P. and Aydede, M (edited by), The Cambridge Handbook of Situated Cognition, pp. 3-10. New York.
RODAN S., GALUNIC C. (2004), “More than network structure: How knowledge heterogeneity influences managerial performance and innovativeness”, Strategic Management Journal, vol. 25, n. 6, pp. 541-562.
ROGERS E.M. (1995), “Diffusion of Innovations: modifications of a model for telecommunications”, in Die diffusion von innovationen in der telekommunikation (pp. 25-38), Springer, Berlin, Heidelberg.
ROGERS E.M. (2002), “Diffusion of preventive innovations”, Addictive Behaviors, vol. 27, n. 6, pp. 989-993.
ROGERS E.M. (2010), Diffusion of innovations, Simon and Schuster, New York.
ROGERS E.M., SHOEMAKER F. (1971), Communication of innovations: a cross-cultural approach, Free Press.
SAHIN I. (2006), “Detailed review of Rogers’ diffusion of innovations theory and educational technology-related studies based on Rogers’ theory”, Turkish Online Journal of Educational Technology-TOJET, vol. 5, n. 2, pp. 14-23.
SCHIFFMAN L.G., KANUK L.L. (2009), Consumer behaviour, Harlow, England: Prentice Hall.
SCHOLZ J., DUFFY K. (2018), “We ARe at home: How augmented reality reshapes mobile marketing and consumer-brand relationships”, Journal of Retailing and Consumer Services, vol. 44, n. September 2018, pp. 11-23.
SEMIN G.R., SMITH E.R. (2013), “Socially situated cognition in perspective”, Social Cognition, vol. 31, n. 2, pp. 125-146.
SERRAVALLE F., VANHEEMS R., VIASSONE M. (2019), “Consumers’ perception of Augmented Reality: An application to the “Made in Italy” brand”, Impresa Progetto-the Electronic Journal, n. 2, pp. 1-30.
SHAKIR M. (2002), “The selection of case studies: strategies and their applications to IS implementation case studies”, Research Letters in the Information and Mathematical Sciences, vol. 3, pp. 191-198, Available online at http://www.massey.ac.nz/~wwiims/research/letters/
SILTANEN S., WOODWARD C. (2006), “Augmented interiors with digital camera images”, in Proceedings of the 7th Australasian User interface conference, 50 (pp. 33-36). Australian Computer Society, Inc.
SINKOVICS R.R., SINKOVICS N. (2020). “The Internet and international marketing-from trigger technology to platforms and new markets”, International Marketing Review, vol. 37, n. 3, pp. 437-446.
SPREER P., KALLWEIT K. (2014), “Augmented reality in retail: assessing the acceptance and potential for multimedia product presentation at the PoS”, Transactions on Marketing Research, vol. 1, n. 1, pp. 20-35.
STRAUSS A., CORBIN J. (1990), Basics of qualitative research, Sage publications, Berlin (Germany).
SYKES W. (1991), “Taking stock: issues from the literature on validity and reliability in qualitative research”, Market Research Society Journal, vol. 33, n. 1, pp. 1-11.
VANHEEMS R. (2015), Réussir sa stratégie cross et omni-canal: pour des marques et des entreprises connectées, EMS Editions, Caen (France).
VERHOEF P.C., KANNAN P.K., INMAN J.J. (2015), “From multi-channel retailing to omni-channel retailing: introduction to the special issue on multi-channel retailing”, Journal of Retailing, vol. 91, n. 2, pp. 174-181.
YIN R.K. (1994), “Discovering the future of the case study. Method in evaluation research”, Evaluation Practice, vol. 15, n. 3, pp. 283-290.
ZAGEL C. (2016), “Service fascination”, in Service Fascination (pp. 89-136). Springer Gabler, Wiesbaden.
