Data Integration Capability as a Linking Mechanism between Digital Technology Adoption and Omnichannel Performance: A Synthetic Data-Based PLS-SEM Approach
Keywords:
Digital Technology Adoption, Data Integration Capabilities, Omnichannel Performance, Dynamic Capabilities, PLS-SEMAbstract
Digital transformation drives retail companies to integrate physical and digital channels within omnichannel strategies; however, technology adoption does not fully explain how digital resources translate into cross-channel performance. This study aims to analyze the relationships among digital technology adoption, data integration capabilities, and omnichannel performance, while also examining the mediating role of data integration capabilities and the moderating role of firm size. A simulation-based explanatory quantitative approach was employed, utilizing 220 synthetic observations. Analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM), involving the evaluation of measurement and structural models alongside bootstrapping with 5,000 subsamples. The results indicate that digital technology adoption is positively associated with both omnichannel performance (β = 0.274; p < 0.001) and data integration capabilities (β = 0.356; p < 0.001). Data integration capabilities also show a positive relationship with omnichannel performance (β = 0.349; p < 0.001). The indirect effect mediated by data integration capabilities is significant (β = 0.124; p < 0.001), indicating partial mediation. Conversely, firm size does not significantly moderate the relationship between digital technology adoption and data integration capabilities (β = 0.056; p = 0.348). While the simulation findings support the role of data integration capabilities as an organizational mechanism within the model, validation using empirical data from actual retail companies is still required. These results align with the Dynamic Capabilities perspective underpinning the primary research model.
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