Changing Connectivity into Capability: The Quality of Broadband, Sensing, and Digital Change in Rural Retail Small and Medium-Sized Enterprises

This study seeks to understand how the Quality of Broadband (QBB) and Sensing Capability (SC) shape the Digital Change Intensity (DCI) and, in turn, performance at the firm level in the rural retail sector consisting of Small and Medium-Sized Enterprises (SMEs), which, as of now, are poorly served by the digital revolution. The research established a compelling quantitative design utilizing survey data from 742 firms. The survey was complemented with field observations and documentary evidence. It was found that the constructs were solidly measured. DCI is driven by QBB and SC, while firm-level performance is related to DCI. Qualitative data confirmed the survey's positive-observational consequences. We demonstrate that for rural retail SMEs, better BQ and better SC lead to better digital transformation, which leads to better business performance.