Abstract

Purpose: This study examines the effects of internal readiness, distribution factors, and technology adoption on competitive advantage in small-scale border retail firms. Research design, data and methodology: Data were collected through online questionnaires administered to store owners and managers, with reliability confirmed by Cronbach’s alpha values ranging from 0.822 to 0.960. Results: Structural equation modeling with bootstrapping indicates that internal readiness has a strong positive effect on technology adoption (β = 0.876, p < 0.001). However, internal readiness (β = 1.527, p = 0.269) and distribution factors (β = 0.749, p = 0.081) do not have a direct effect on competitive advantage. In addition, distribution factors do not significantly influence technology adoption (β = 0.135, p = 0.453), and technology adoption alone does not directly enhance competitive advantage (β = −1.267, p = 0.435). Mediation analysis further reveals that technology adoption does not mediate the effects of internal readiness or distribution factors on competitive advantage. Conclusions: The findings suggest that internal readiness is a key driver of technology adoption, while technology adoption functions primarily as an enabler rather than a direct source of competitive advantage. Distribution factors support the process, but achieving competitiveness requires the strategic integration of internal capabilities.