What Are the Key Determinants of Digital Transformation? Empirical Evidence from Spanish Food Units (Mercas) Network

Abstract

In the paper, we examine the digital transformation of the complete population of 24 Spanish food units, named Mercas. Our special focus is on developing an index that measures the degree of digital transformation of these public companies. Using a Tobit panel data model, we aim to assess which are the main determinants of the Mercas’ digital transformation status. Collectively, our empirical results involve internal elements such as the size of the Merca, the knowledge of digital technologies by top management, the collaboration between the millennial generation staff and the rest of the staff, the business management of the buying and selling of flowers, fruit and vegetables and meat and, finally, that they have B2B platforms to carry out transactions and exchange information with wholesalers, which impacts on the degree of digital transformation of the food units. Findings also indicate that the demand for the use of new technologies by customers is an external element with a high degree of influence in their digital transformation.