IMPACT OF ELECTRONIC COMMERCE ON THE GROCERY RETAIL TRADE IN SINGAPORE: RETAILERS' PERSPECTIVE

Abstract

This study examines the impact of electronic commerce on the local grocery retail trade. The impact is assessed in terms of changes to the quantity and quality of grocery retail space occupied. In addition, this study also examines the willingness of the local grocery retailers to adopt electronic commerce for business-to-consumer dealings. Regarding electronic commerce as a form of new innovation, the Rogers model of innovation decision process is applied as the framework to assess the rate of adoption of electronic commerce amongst the grocery retailers. Summary statistics are analysed to find out factors that differentiate grocery retailers into those who are willing to adopt and those who are not willing to adopt electronic commerce. Following this, a multiple regression analysis is done with the five attributes of innovation highlighted by Rogers to determine which attributes affect the willingness of the grocery retailers to adopt electronic commerce. A sample of one hundred and three responses is generated from the survey carried out on grocery retailers of three different store types - supermarket, mini-mart and provision shop. Findings from the survey revealed that the five attributes of innovation highlighted by Rogers play an insignificant role in motivating the grocery retailers to adopt electronic commerce. Referring once more to Rogers model of innovation decision process would suggest that other variables are at play in determining the willingness of local grocery retailers to adopt electronic commerce. A study of the other variables on the willingness to adopt electronic commerce could be carried out with future research. Recommendations were made to the local grocery retailers on how electronic commerce could be adopted with greater success.