Bridging the Analytics Divide: Retail Technology Diffusion in South Africa's Traditional Retail Sector

Abstract

Retail analytics holds immense potential for enhancing decision-making, efficiency, and competitiveness in the retail sector. However, its adoption across traditional and hybrid retail industries in emerging markets remains inconsistent. This study examines the adoption of analytics technologies in South Africa's traditional retail sector, utilizing the Technology-Organization-Environment (TOE) framework and the Diffusion of Innovations (DOI) theory. Drawing on a qualitative multi-case study of fifteen executives (n = 15) spanning three retail organizations, the study identifies technological constraints (legacy systems and lack of IT infrastructure), organizational barriers (limited analytic capability and cultural resistance), and environmental factors (regulatory uncertainty and socioeconomic inequality) as significant impediments to analytics adoption. Despite these challenges, findings reveal that phased analytics implementation, executive sponsorship, and alignment with core retail operations facilitate successful integration. The study provides a specialized framework for analytics diffusion in constrained environments and recommends strategies for policy and practice that align with the realities of developing economies.