Innovative Digital Transformation Strategies of Large Suppliers for Mexican Corner Stores During a Pandemic: Challenges and Opportunities

Innovative Digital Transformation Strategies of Large Suppliers for Mexican Corner Stores During a Pandemic: Challenges and Opportunities

Regina G. Diaz, Raul F. Montalvo
DOI: 10.4018/978-1-6684-6762-6.ch011
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Abstract

With the pandemic, digital transformation (DT) was accelerated, and consumers adopted new consumption patterns. Therefore, suppliers had to adapt their business models quickly. This study aims to understand the strategies of large suppliers on Mexican corner stores (CS) during the pandemic and show the perception of CS about these DT strategies. Many digital platform initiatives that were developed by both the government and large suppliers are introduced in this chapter. Additionally, interviews with large suppliers' executives were consulted to clarify their activities that were developed in favor of CS. By conducting 20 interviews with CS, the authors found their perception of large suppliers' DT actions. Findings reveal that the lack of training, investment, and incentives are key factors for the entire virtuous cycle to be fulfilled.
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Background

It is important to mention that, recent studies show that 40% of all technology spending at a global level has been invested in DT, with enterprises spending over $2 trillion in 2019. Moreover, 52% of companies plan to cut or delay investments because of COVID-19, whereas only 9% make those cuts in DT projects (Appio et al., 2021). Accordingly, most business-to-business (B2B) companies have started their DT projects to ensure their competitiveness in the market. The sales team is making its own effort in contributing to the productivity gains of the company: since the 1980s, sales researchers have been particularly concerned with the implementation of digital technologies in the form of customer relationship management systems or sales force automation (Wengler et al., 2021).

Providing a comprehensive definition of DT is complex because it is a multifaceted and multidimensional phenomenon that affects organizations at different levels and forms (Appio et al., 2021). DT is defined as transformation “concerned with the changes digital technologies can bring about in company’s business model, products, or organizational structures” (Nadkarni & Prügl, 2021); it is perhaps the most pervasive managerial challenge for incumbent firms of the last and coming decades. The term “digital transformation” is primarily discussed in the research domain of information systems and increasingly in sales; it encompasses profound organizational and societal changes (Wengler et al., 2021).

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