Retail SMEs' performance under impacts of technological uncertainty

Purpose The study aims to clarify the impact of technological uncertainty (TU) on emerging market retail SMEs' performance with the mediating roles of digital capabilities (DCs) and marketing innovation capability (MarIC). Design/methodology/approach The research applied a convenience sampling including 271 valid responses collected from Vietnamese small and medium-sized enterprises (SMEs) in the retail industry. The paper employed partial least squares-structural equation modeling as an analysis technique. Findings The findings show that TU has a positive significant statistical impact on retail SMEs' performance. Furthermore, DCs and MarIC serve as mediators in the relationship between TU and firm performance. Originality/value This research emphasizes both theoretical and practical contributions, especially practical implications for emerging market retail SMEs in enhancing DCs and innovation capability in marketing to facilitate firms to adapt to TU.