Adoption of Digital Inventory Management Systems and Its Impact on Operational Efficiency in Retail SMEs

Usman Usman

doi:10.69693/ijim.v4i4.2901

Authors

Usman Usman Universitas Halu Oleo

DOI:

https://doi.org/10.69693/ijim.v4i4.2901

Keywords:

Digital Inventory System, Operational Efficiency, Perceived Usefulness, Retail SMEs, System Integration

Abstract

Retail small and medium-sized enterprises increasingly rely on cashier and inventory applications, yet quantitative evidence on how the adoption of these systems translates into operational efficiency remains limited, particularly in eastern Indonesia. This study examined the effect of three dimensions of digital inventory management system adoption, namely extent of use, system integration, and perceived usefulness, on the operational efficiency of retail small and medium-sized enterprises in Kendari City. An explanatory quantitative survey design was employed. Because the population size was unknown, the sample size was determined with the Lemeshow formula, which yielded 96 respondents. Respondents were owners or stock-managing employees of retail enterprises that had used a digital inventory application for at least six months and were selected through purposive sampling. Data were collected with an online questionnaire on a five-point Likert scale and analysed through multiple linear regression after instrument and classical assumption testing. The results show that extent of use, system integration, and perceived usefulness each have a positive and significant effect on operational efficiency, and together they explain 39.7 percent of its variation. Perceived usefulness is the strongest predictor, followed by extent of use and system integration. The findings indicate that efficiency gains depend not merely on owning a digital system but on how intensively it is used, how well it is connected with sales, purchasing, and financial records, and how strongly users value it. Application providers and support programmes should therefore pair adoption with feature training and integration assistance.

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