Digital Transformation And Omnichannel Strategies In Indonesian Agricultural Retail: A Technology Organization Environment Perspective
DOI:
https://doi.org/10.35791/jat.v7i1.62153Keywords:
Digital transformation, Omnichannel retail, Agricultural retail, Agrifood sector, Technology Organization Environment (TOE)Abstract
Digitalisation is reshaping how agricultural products and farm inputs move along value chains, yet the role of agricultural retailers in this process remains underexplored. This study investigates digital transformation and omnichannel strategies in Indonesian agricultural retail, focusing on agro input shops and agrifood outlets that combine physical stores with digital channels such as social media, marketplaces, and websites. Guided by the Technology Organization Environment framework, it analyses how technological, organisational, and environmental factors influence omnichannel adoption, identifies key barriers, and examines perceived effects on business performance. A mixed method design is employed: in the qualitative phase, semi structured interviews with owners and managers explore current digital practices, drivers, and obstacles and inform the development of a structured questionnaire; in the quantitative phase, survey data from agricultural retailers in several Indonesian regions are analysed using partial least squares structural equation modelling. The results indicate that all three Technology Organization Environment dimensions have positive and significant relationships with the degree of omnichannel adoption. The study also finds important barriers, including limited rural digital and logistics infrastructure, seasonal demand patterns, perceived high costs of integrated systems, gaps in digital skills and confidence, and difficulties in integrating data and processes across platforms. Higher levels of omnichannel adoption are associated with improved perceived sales, customer relationships, and operational efficiency. Overall, the findings suggest that well-designed omnichannel strategies can strengthen the intermediary role of agricultural retailers and support more efficient and inclusive agricultural marketing systems in Indonesia.
Keywords: Digital transformation; Omnichannel retail; Agricultural retail; Agrifood sector; Technology Organization Environment (TOE); Indonesia
References
[1] S. Begum and Z. Ul Oman, “Digital Transformation in Retail,” J. Emerg. Technol. Innov. Res., vol. 12, pp. i354–i361, Mar. 2025, doi: 10.1729/Journal.44346.
[2] R. Mishra and D. Varshney, “Digital Transformation(Dt): Promoting Growth and Efficiency in Uttar Pradesh Organized Retailing,” Int. J. Res. Eng. Appl. Manag., vol. 10, pp. 2454–9150, Apr. 2024, doi: 10.35291/2454-9150.2024.0096.
[3] I. Paska, I. Svynous, I. Artimonova, S. Ostapenko, and N. Prysiazhniuk, “Strategic Directions for Enhancing the Competitiveness of Agricultural Products in External Agri-Food Markets,” Econ. Anal., vol. 34, pp. 497–508, Sep. 2024, doi: 10.35774/econa2024.03.497.
[4] M. Frau and T. Keszey, “Seeding innovation: the role of internal and external digital data in agri-food product innovation,” Br. Food J., vol. 126, pp. 286–302, May 2024, doi: 10.1108/BFJ-08-2023-0687.
[5] A. Asmare and S. Zewdie, “Omnichannel retailing strategy: a systematic review,” Int. Rev. Retail. Distrib. Consum. Res., vol. 32, pp. 1–21, Jan. 2022, doi: 10.1080/09593969.2021.2024447.
[6] G. Carvalho, M. Cardoso Machado, and V. Corrêa, “Omnichannel and consumer and retailer perceived risks and benefits: a review,” Int. J. Retail Distrib. Manag., vol. 52, Dec. 2023, doi: 10.1108/IJRDM-03-2023-0180.
[7] W. Fauzzia, A. Rahayu, and H. Hendrayati, “The Role of Omnichannel Strategy in Enhancing Consumer Experience: A Literature Review,” Dinasti Int. J. Educ. Manag. Soc. Sci., vol. 6, pp. 1986–1994, Feb. 2025, doi: 10.38035/dijemss.v6i3.3907.
[8] N. Hasbullah, A. Kiflee, S. Anwar, and R. K K, “Mapping the Trend of Digital Transformation in Omni-Channel Retailing: A Bibliometric Analysis,” Mark. Manag. Innov., vol. 15, pp. 29–40, Jan. 2024, doi: 10.21272/mmi.2024.1-03.
[9] Y. Hou, S. Cao, K. Bryceson, P. Currey, and A. Yaseen, “Omnichannel and Product Quality Attributes in Food E-Retail: A Choice Experiment on Consumer Purchases of Australian Beef in China,” Foods, vol. 14, p. 1813, May 2025, doi: 10.3390/foods14101813.
[10] N. Sharma and J. Fatima, “Omnichannel usage influence on webrooming-showrooming: the moderating influence of consumer segment and product price,” J. Consum. Mark., vol. 42, May 2025, doi: 10.1108/JCM-05-2024-6891.
[11] M. Ciasullo, R. Montera, F. Mercuri, and S. Mugova, “When Digitalization Meets Omnichannel in International Markets: A Case Study from the Agri-Food Industry,” Adm. Sci., vol. 12, p. 68, Jun. 2022, doi: 10.3390/admsci12020068.
[12] H. Lim, K. B. Aviso, and B. Sarkar, “Effect of service factors and buy-online-pick-up-in-store strategies through an omnichannel system under an agricultural supply chain management,” Electron. Commer. Res. Appl., vol. 60, p. 101282, 2023, doi: https://doi.org/10.1016/j.elerap.2023.101282.
[13] S. Moon and D. Iacobucci, “Social Media Analytics and Its Applications in Marketing,” Found. Trends® Mark., vol. 15, no. 4, pp. 213–292, 2022, doi: 10.1561/1700000073.
[14] R. Handayani, G. Diva, E. Hermansyah, and A. Siswati, “Transformasi Digital E-Commerce di Era Post-Pandemic: Analisis Tren dan Dampak pada Perilaku Konsumen Indonesia,” J. Inform. dan Kesehat., vol. 2, pp. 108–117, Aug. 2025, doi: 10.35473/ikn.v2i2.3704.
[15] J. Putra, “Digital Transformation in Enhancing Operational Efficiency of E-Commerce Platforms in Southeast Asia: A Comprehensive Analysis and Strategic Implications,” TechTalent Bus. Rev., vol. 1, pp. 1–12, Jul. 2025, doi: 10.63985/ttbr.v1i2.11.
[16] R. Wirdiyanti et al., “How does e-commerce adoption impact micro, small, and medium enterprises’ performance and financial inclusion? Evidence from Indonesia,” Electron. Commer. Res., vol. 23, no. 4, pp. 2485–2515, Apr. 2023, doi: 10.1007/s10660-022-09547-7.
[17] P. Irwandi, R. Oktavianto, A. Adetya, and S. Sopian, “Predicting Agricultural Product E-Commerce Usage Behavior In Indonesia With Machine Learning Algorithms,” Nominal Barom. Ris. Akunt. dan Manaj., vol. 14, pp. 101–117, Apr. 2025, doi: 10.21831/nominal.v14i1.71565.
[18] R. Aulia et al., “Determinants of Purchasing Intention of Agricultural Products via E-commerce Platforms in Jakarta, Indonesia,” Res. World Agric. Econ., vol. 5, pp. 14–31, May 2024, doi: 10.36956/rwae.v5i2.1037.
[19] R. Soeyatno, Y. Syaukat, R. Nurmalina, and S. Suprehatin, “The Impact of E-Commerce on Digital Farmers Vegetable Sales in Jakarta Metropolitan Area,” J. Int. Soc. Southeast Asian Agric. Sci., vol. 30, pp. 14–32, Dec. 2024.
[20] S. Sikdar, Illustrating the Notion of “Farm Innovation Brokers” in Pluralistic Extension Regime: A Conceptual Analysis. 2023.
[21] W. Guo and K. Yao, “Supply Chain Governance of Agricultural Products under Big Data Platform Based on Blockchain Technology,” Sci. Program, vol. 2022, pp. 1–16, Jan. 2022, doi: 10.1155/2022/4456150.
[22] M. Ogunbukola, “Bricks vs. Clicks: How Retailers Can Compete with Online Stores and Transform Supply Chains for the Future,” Jan. 2025.
[23] T. H. Nguyen, X. C. Le, and T. H. L. Vu, “An Extended Technology-Organization-Environment (TOE) Framework for Online Retailing Utilization in Digital Transformation: Empirical Evidence from Vietnam,” J. Open Innov. Technol. Mark. Complex, vol. 8, no. 4, p. 200, 2022, doi: https://doi.org/10.3390/joitmc8040200.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Raymond Christian Kawet, Michael Ch. Raintung, Silvya Lefina Mandey, Agus Supandi Soegoto , Franda Benedicta Paat , Christy Natalia Rondonuwu
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
