Managing Digital Technology–Enabled Seamless Retail: A Business Model Perspective | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Managing Digital Technology–Enabled Seamless Retail: A Business Model Perspective Aparna Lohiya, John Jeansson, Anita Mirijamdotter This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-9299296/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The growing demand for seamless customer experiences across physical and digital touchpoints has driven organizations to adopt omnichannel approach. However, small and medium-sized enterprises (SMEs) face significant challenges in this transition due to limited technological, organizational, and financial resources. This study investigates these challenges and associated success factors through an in‑depth qualitative case study of an SME, using the Business Model Canvas (BMC) as the analytical framework. By mapping challenges and success factors across the nine BMC components, the study illustrates and extends their dynamic interconnectedness. Key challenges include supplier digital readiness, logistics integration, inventory synchronization, evolving customer expectations, and resource constraints. The findings show that achieving seamless retailing requires not only technological enhancements but also organizational agility, cross‑functional coordination, and partner collaboration. Success factors such as enhanced customer experience, supplier capability development, process alignment, and continuous improvement span multiple BMC components, demonstrating the systemic nature of the seamless omnichannel transition and BMC itself. Further, the study advances the digital technology–enabled seamless retail and business model literature by demonstrating the systemic and interdependent nature of the BMC and its role as an analytical and strategic framework for SMEs managing complex transitions towards seamless retailing under resource constraints. Digitalization Seamless retail Business Model Business model Canvas case study Figures Figure 1 Figure 2 1. Introduction Retail businesses have undergone significant transformation from localized market exchanges to structured physical stores. Over time, innovations such as mail-order catalogues, television shopping, and later, e-commerce have significantly transformed how retailers interacted with consumers. In recent years, this transformation has been accelerated due to rapid technological advancements and widespread digital adoption (Ciasullo et al. 2022 ; Verhoef et al. 2015 ). These fast-paced technological changes have not only altered customer shopping behaviour but also introduced new complexities for businesses. At the same time, they have opened new value creating opportunities to create a deeper and long-lasting customer relationships. Customers are increasingly utilizing multiple complementary channels across pre-purchase, purchase and post-purchase stages to enhance their overall shopping journey (Verhoef et al. 2015 ; Rahman et al. 2025 ; Suh & Moradi 2023 ). This is blurring the distinction between physical and digital channels (Brynjolfsson et al. 2013 ; Jocevski 2020 ). While different channels serve distinct roles such as convenience, wide format and product information, price comparison, tactile feeling, and instant gratification (Verhoef et al. 2015 ), customers increasingly expect a frictionless experience across all touchpoints. Creating a seamless omnichannel experience increases the complexity of business processes and operations (Cocco & Demoulin, 2022 ; Hübner et al. 2016 ; Li et al. 2025 ). This complexity arises from the growing number of channels, the need to coordinate internal and external resources, and the necessity of forming strategic alliances with partners to deliver the seamless function. Verhoef et al. ( 2015 ) defined omnichannel management as the synergetic management of multiple available channels and customer touchpoints to optimize the customer experience across channels and the overall performance. Empirical studies suggest that omnichannel integration can improve process efficiency, strengthen customer retention, and increase transaction value (Cao & Li 2015 ; Ghiasuddin Taheri et al. 2024 ; Asif et al. 2026 ). However, effective implementation requires managing a wide range of customer touchpoints, including search, display, email, websites, and mobile apps (Verhoef et al. 2015 ). Despite its growing importance, small and medium sized enterprises (SMEs) often face unique challenges in adopting omnichannel strategies primarily due to limited resources and technological capabilities. Although seamless retailing is widely recognized as the future of the industry (Asif et al. 2026 ), strategies for successful implementation remain unclear. Existing research has addressed specific challenges(Chen et al. 2018 ; Lewis et al. 2014 ; Verhoef et al. 2015 ) and the transition process(Hansen & Sia 2015 ; Hübner et al. 2016 ; Jocevski et al. 2019 ), however the literature remains fragmented and relatively underdeveloped (Lehrer & Trenz 2022 ). Most studies emphasize operational and technological aspects, often focusing on large retailers, logistics, and IT systems, while paying limited attention to organizational perspectives and business model revision (Lehrer & Trenz 2022 ; Mishra et al. 2021 ). Consequently, there is limited understanding of how SMEs can strategically revise their business models to support seamless retailing. In particular, the role of business model frameworks such as the Business Model Canvas (BMC) in guiding SMEs through this process is underexplored. This paper addresses this gap by investigating the challenges and success factors associated with seamless omnichannel implementation in an SME context using the BMC framework. Specifically, it identifies key challenges encountered during the transition and maps them to BMC components, and highlights success factors that enable seamless retailing. By doing so, the paper offers a structured approach for SMEs to evaluate and refine their business models for omnichannel implementation. This perspective extends beyond technology adoption, providing a holistic understanding of how SMEs can strategically align their business models with evolving customer expectations in a retail landscape involving multiple channels. By systematically aligning omnichannel challenges and success factors with the components of the BMC, this study advances both omnichannel retailing and business model literature. It further provides actionable insights for SMEs and other retailers seeking to navigate the complexities of the omnichannel environment. The paper is organized as follows: Section 2 presents the theoretical background, including digitalization, seamless retailing, and the BMC framework. Section 3 outlines the research methodology and case study context. Section 4 reports the findings, followed by Section 5, which discusses challenges and success factors mapped to the BMC and their implications for retailers. Finally, Section 6 concludes with key insights, limitations, and directions for future research. 2. Theoretical background 2.1 Digitalization and digital technology–enabled seamless retail Digitalization is the adoption of digital technologies within organizations (Parviainen et al. 2017 ; Tripathi 2024 ). It is changing the way businesses operate and enabling deeper and more dynamic relationships with customers, suppliers, and other stakeholders (Ciasullo et al. 2022 ). It has transformed every industry, and the retail sector is no exception (Grewal et al. 2017 ). This transformation accelerated significantly during the COVID-19 pandemic, with some businesses experiencing a decade’s worth of change in just a few years (Baldivia & Chowdhury 2024 ; Salvietti et al. 2022 ). Digitalization has blurred the boundaries between physical and digital spaces, altered traditional business models, and redefined the roles of involved actors (Hübner et al. 2021 ; Jocevski 2020 ; Verhoef et al. 2015 ). To manage digital transformation effectively, organizations may need a comprehensive strategy that addresses technological, organizational, and cultural dimensions (Parviainen et al. 2017 ; Vial 2019 ). Abdallah et al. ( 2022 ) in their case study propose an eight‑stage transformation process, demonstrating how structured, phased progression can support capability development and reduce transformation risks. Incorporating such perspective reinforces the idea that seamless retailing demands continuous, organization‑wide adaptation rather than isolated technology adoption. As it is a complex and interconnected journey involving business model revision, capability development, and cultural renewal (Verhoef et al. 2021 ). Today’s consumers interact with retailers through a wide range of touchpoints (Larke et al. 2018 ; Rahman et al. 2025 ). These omni-shoppers often browse online and purchase in-store or vice versa, requiring retailers to synchronize channels to provide seamless shopping experiences (Chang & Li 2022 ; Cocco & Demoulin 2022 ; Hübner et al. 2016 ; Li et al. 2025 ). As a result, transitioning to a seamless retail has become essential for retailers seeking to remain competitive in a dynamic and digitally driven landscape (Grewal et al. 2017 , Lohiya & Mirijamdotter 2021 ). Based on retailers’ presence on internet channels, Kim and Chun ( 2018 ) categorize retail channel strategies into four types: hybrid or multichannel strategy, offline-focused or passive online strategy, online-focused or pure-play strategy, and omnichannel strategy. Berman and Thelen ( 2018 ) proposed a simplified model for categorizing the stages of channel synchronization, labelling them as level one, two, three, and four. In a more recent approach, Lohiya and Mirijamdotter ( 2021 ) outlined the omnichannel transition process based on a literature review. They categorized them into four progressive stages: multichannel, crosschannel, early stage omnichannel and finally harmonized, where channels are fully synchronized and seamless from both retailer and customer perspectives. The core of omnichannel retailing lies in meeting customer needs seamlessly, anytime, anywhere, and through any preferred channel (De Sousa et al. 2021 , Lohiya & Mirijamdotter 2021 ). Retailers need to efficiently and accurately process orders regardless of the channel or location (Verhoef et al. 2021 ). However, many retailers remain constrained by outdated business models, which make them vulnerable to more agile and digitally mature competitors (Vial 2019 ). Implementing a seamless approach is inherently complex and requires coordination among various actors. Delivering seamless customer experiences depends on logistics and supply chain integration, particularly real-time inventory visibility across channels (Davis-Sramek et al. 2020; Febriani et al. 2025 ; Mishra et al. 2023 ; Song et al. 2020 ). Recent work by Stoiber & Schönig ( 2024 ) shows that synchronizing operations requires redesigning business processes. These efforts are driven by digitalization and supported by broader organizational changes. In today’s retail landscape, omnichannel engagement is no longer merely a differentiating factor, it has become a strategic necessity for business continuity and long-term sustainability, particularly for retaining high-value and loyal customers (Cao & Li 2015 ; Li et al. 2025 ). 2.2 Challenges and success factors for seamless retailing Retailers undergoing digital transformation and implementing seamless omnichannel approach face a wide range of challenges (Barbosa & Casais 2022 ; De Sousa et al. 2021 ; Radomska et al. 2024 ). A major challenge is the integration of channels, which requires seamless coordination across systems and departments (Cao & Li 2015 ; Lohiya & Mirijamdotter 2021 ). The adoption of advanced digital technologies requires substantial investment in infrastructure and digital capabilities which can be challenging(Febriani et al. 2025 ; Ishfaq et al. 2024 ; Song et al. 2020 ; Verhoef et al. 2021 ; Vhatkar et al. 2024 ) particularly for SMEs. Supply chain coordination, including inventory visibility and logistics, adds further complexity and requires real-time data synchronization and agile operational design (Mishra et al. 2023 ; Verhoef et al. 2015 ). Organizational resistance to change and gaps in employee skills also hinder transformation efforts (Barbosa & Casais 2022 ; Febriani et al. 2025 ). Although, customer data supports personalization across heterogeneous customer groups (Gomes & Meisen 2023 ), managing and analyzing large volumes of customer and operational data requires advanced information systems and stricter data privacy standards. At the same time, consumers expect highly personalized, seamless experiences across all touchpoints while also demanding strong privacy protection (Bandara et al. 2020 ; Gerea & Herskovic 2022 ; Lehrer & Trenz 2022 ; Thaichon et al. 2024 ; Vhatkar et al. 2024 ). This increases pressure on firms to deliver fully integrated and adaptive services under strong governance and privacy standards(Aiolfi & Sabbadin 2019 ; Stoopendahl et al. 2025 ). Recent studies emphasize the importance of aligning online and offline touchpoints, ensuring that customers receive continuity across digital and physical interactions (Ailawadi & Farris 2017 ; Neslin 2022 ; Suh & Muradi 2023; Asif et al. 2026 ). Furthermore, personalized marketing, customer engagement strategies, and an understanding of customer channel choices have emerged as essential, allowing firms to adapt offerings to individual preferences and behaviors. The strategic use of innovative technologies, such as advanced analytics and AI-driven tools, provides additional competitive advantages. These technologies support data-driven decision-making, optimize operations, and enhance the overall customer experience (GrowthFactor 2025 ). The success factors for multiple channels and omnichannel retailing encompass technological integration (Lewis et al. 2014 ; Saghiri et al. 2017 ; von Briel 2018 ), customer experience enhancement (Brynjolfsson et al. 2013 ; Do Vale et al. 2021 ), and operational efficiencies. The extant literature highlights a few success factors that contribute to the effective implementation of omnichannel retailing. A central factor is technological integration, which enables the seamless flow of information and transactions across channels (Lewis et al. 2014 ; Saghiri et al. 2017 ; von Briel 2018 ). Another key factor is the enhancement of customer experience, particularly in achieving seamlessness across touchpoints, which has been identified as a key driver of customer satisfaction and loyalty (Brynjolfsson et al. 2013 ; Li et al. 2025 ; Do Vale et al. 2021 ). Operational efficiency, including optimized logistics and supply chain coordination, further improves organizational capacity to deliver consistent experiences across channels. 2.3 Business model and business model canvas The concept of the business model has long been an integral part of a firm. It describes how firms create, deliver, and capture value (Osterwalder & Pigneur 2010 ; Teece 2010 ; Zott et al. 2011 ). Despite its widespread use, there is no universally accepted definition, as the term has been interpreted through various lenses and frameworks across disciplines, making it challenging to settle on a single definition (Amit & Zott 2001 ; Foss & Saebi 2018 ; Kurti et al. 2021 ). The relevance of the business model has grown significantly in the digital era. Digitalization has disrupted conventional ways of doing business, prompting the need for timely and effective changes in the business model (Lohiya & Mirijamdotter 2026 ). This is essential as it offers avenues for value creation (Amit & Zott, 2001 ). The business model is a critical component of strategic management that enables organizations to stay competitive, innovative, and value-driven (Teece 2010 ; Vial 2019 ). Recent research by Oruganti ( 2025 ) further shows that implementing digital transformation requires a holistic, ecosystem‑oriented logic, in which firms translate top‑down strategic intent into customer‑centric digital ecosystems by aligning internal process changes with external partner collaborations. This is particularly important in omnichannel retail as well, where seamless integration of physical and digital channels is required (Baldivia & Chowdhury 2024 ; Ishfaq et al. 2024 ). In line with established literature, this study adopts the definition of a business model as the creation, delivery, and capture of value. As mentioned, several frameworks have been proposed to conceptualize business models, each offering distinct perspectives suited to different analytical contexts (Chesbrough & Rosenbloom 2001 ; Johnson 2010 ; Morris et al. 2005 ; Zott et al. 2010; Bocken et al. 2014 ). While these models differ in scope and application, they typically converge around the core dimensions of the business model, which are value creation, value delivery, and value capture, reflecting a systemic understanding of business model design. The Business Model Canvas (BMC) has emerged as one of the most extensively cited and widely adopted frameworks in both academic and managerial contexts (Fritscher & Pigneur 2009 ). It consists of nine building blocks, namely customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure (Osterwalder & Pigneur 2010 ). The level of detail in a business model depends on the contextual requirements in which it is used rather than the framework itself, allowing flexibility for practitioners and researchers to adapt it to various strategic, operational and industry specific settings without giving up clarity or analytical rigor (Bocken et al. 2014 ). The BMC facilitates a systemic understanding of how an organization creates, delivers, and captures value, not by isolating individual components, but by examining how all the pieces connect to tell a story (Osterwalder & Pigneur 2010 ). Thus, its structured yet flexible design makes it particularly suitable for analysing innovation, transformation, and strategic alignment. Despite its strengths, the BMC has faced criticism. Some scholars argue that it omits competition as a building block (Marković & Furjan 2021 ; Pratiwi & Chumaidiyah 2021 ). However, competition is generally considered part of the external environment rather than part of the business model components (Osterwalder & Pigneur 2010 ). Others claim that the BMC is static (Khodaei & Scholten 2024 ; Romero et al. 2015 ), though it is not inherently static as it evolves with the business environment, and its effectiveness depends on regular updates (Fritscher & Pigneur 2009 ). Concerns also exist regarding its tendency to oversimplify complex business dynamics (Miller et al. 2016 ). However, the level of detail can be adjusted based on contextual needs (Diderich, 2020 ). Furthermore, Matricano & Liguori ( 2024 ) note that the traditional BMC does not adequately incorporate digital technologies. However this study employs the BMC because digital technologies can be integrated into the framework as key resources or key activities depending on their specific role and context. The BMC remains appropriate due to its capacity to holistically represent the interrelated components of a business model. In today’s fast-changing environment business model design and redesign have become a continuous process of adaptation and reconfiguration as retailers transition from traditional to seamless omnichannel approach (Jocevski et al. 2019 ). 2.4 The context of an SME SMEs play a vital role in the European economy, accounting for over 99% of all businesses and contributing significantly to employment, innovation, and regional development (Brodny & Tutak 2022 ; European Commission 2025 ; Zincume & Maier 2025 ). The European Union defines SMEs as firms that employ fewer than 250 employees and has an annual turnover not exceeding EUR 50 million. These enterprises are often characterized by agility, close customer relationships, and lean organizational structures (Jeansson et al. 2017 ; Akalpler 2025 ). However, SMEs face challenges in adopting digital transformation, which requires strategic planning, technological investment, and workforce upskilling. Sagala and Öri (2024) emphasize the need for a holistic digitalization strategy tailored to SME contexts, identifying incremental adoption, continuous learning, and strategic alignment as key success factors. Despite increasing awareness of digital opportunities, SMEs continue to face challenges such as resource constraints, digital skills gaps, and technological complexity (Omowole et al. 2024 ; Akalpler 2025 ). These challenges are further compounded by the rapid pace of digital innovation and the growing need for cybersecurity and data governance. In the retail sector, the emergence of omnichannel strategies integrating online and offline customer experience seamlessly has intensified the digital demands on SMEs. While omnichannel retailing offers significant opportunities for enhancing customer experience and expanding market reach, the implementation of seamlessly integrated channels remains a major challenge for resource-constrained firms (Thaichon et al. 2024 ). 3. Research methodology 3.1 Research design This study adopts a qualitative research design, which is particularly suitable for exploring and gaining an in-depth understanding of complex organizational and managerial problems (Creswell 2014 ). Qualitative methods allow for the collection and interpretation of rich, contextual data that reflect the experiences, perspectives, and strategies of individuals involved in organizational transformation (Bandyopadhyay 2015 ; Creswell 2014 ; Yin 2009 ). In the context of this study, qualitative methods were chosen to investigate and explore the challenges and success factors in a retail business model during the transition to seamless retailing. Given that omnichannel retailing is still an emerging concept and an ongoing process, qualitative research deemed suitable to capture the insights and complexities involved (Salvietti et al. 2022 ; Thaichon et al. 2024 ). To operationalize this approach, a case study methodology was employed. The case study constitutes a comprehensive research strategy to address complex situations, using multiple sources of evidence (Lim 2025 ; Yin 2009 ). This method allows researchers to look at the entirety of an organization and its complex system, focusing on the interconnectedness of the business model components. Moreover, current methodological scholarship highlights that case studies are highly effective for examining dynamic, context‑specific processes because they allow researchers to capture naturally occurring changes, evolving practices, and the influence of environmental and organizational conditions on decision‑making over time (Råbu & Binder 2025 ). It is an appropriate way to explore the novel phenomenon and to explain processes and challenges associated with the implementation of strategic management initiatives. Case studies are particularly valuable when the research seeks to understand the how and why of a complex organizational process and emerging practices, such as omnichannel transformation (Cao 2014 ; Yazan 2015 ; Yin 2009 ). In this paper, the case study therefore provides a robust methodological foundation for capturing the nuanced, context‑specific evolution of the SME’s omnichannel transition, providing the depth and detail necessary to explain the interdependencies across business model components and the decision‑making processes driving them. 3.2 The case company Heritage Craft (HC), a pseudonym used to preserve confidentiality, is a medium-sized European retailer operating in the homeware, fashion, handicraft, and premium gift sectors. It was established around 60 years ago and has the largest collection of locally designed gifts. The retailer has a rich history and is recognized for its support for local designers and its commitment to quality. The retailer has over 200 employees and a strong network of local designers and suppliers. The organizational structure includes several key divisions such as e-commerce, physical retail, IT, and finance and accounting. HC follows a multiple channel strategy, serving both in-store and online customers. In recent years, HC has significantly increased its investment in digitalization, with the strategic goal of transitioning toward a fully integrated seamless model. This transition aims to provide customers with a seamless shopping experience across all touchpoints. By integrating its physical stores with its online platform, HC seeks to enhance customer convenience, improve operational efficiency, and remain competitive in a rapidly evolving retail landscape. With the case context established, the following section presents the empirical findings. These are organized around the key challenges and success factors encountered during HC’s omnichannel transition and are mapped to the BMC framework to illustrate their strategic implications. 3.3 Data collection and analysis Following Merriam’s ( 2009 ) recommendations, case selection was purposeful and aligned with the research objectives to ensure both richness of data and relevance. The selected case, an SME retailer operating across multiple channels, was particularly suitable as it is actively investing in digitalization and channel integration with the aim of delivering a seamless customer experience. The retailer’s ongoing journey into online retailing, the challenges encountered in managing multiple channels, and the subsequent strategic responses present an opportunity to generate novel insights with both theoretical and practical relevance. This context provides a rich setting to explore how SMEs adapt their business models using the BMC framework during digital transformation. The primary method of data collection was semi-structured interviews, complemented by a range of secondary sources. Semi-structured interviews were chosen because they allow managers and decision-makers to share their own views, experiences, and strategies. This method makes it possible to capture rich, detailed insights that reflect the complexity of organizational transformation. To enrich the findings and provide a more comprehensive understanding of the case, data were collected from multiple sources including weekly meetings, industry reports, media coverage, and internal company documents. This diverse set of materials helped reduce the influence of potential biases associated with single-method research (Yin 2009 ) and offered a balanced and comprehensive understanding of the retailer’s transition towards seamless retailing and created a more complete picture of challenges and success factors. Data collection involved the researcher attending weekly strategy meetings chaired by the Group Strategy and E-commerce Director over a period of six months. These meetings offered insights into ongoing digitalization and omnichannel related projects such as virtual stores, loyalty programs, subscription models, social media engagement, and virtual try-on technologies. In addition, in-depth interviews with the Group Strategy and E-commerce Director were conducted twice over the period of three years, each lasting over an hour. These interviews were recorded and transcribed for analysis. Secondary data were collected and analyzed from diverse publicly available sources, including websites, news articles, social media platforms, and official documents. This secondary data provided additional contextual insights into the research and helped to corroborate and enrich the findings derived from the primary data collection. The data analysis followed a systematic and iterative approach aimed at understanding the retailer’s business model and changes during the move towards omnichannel. The BMC was used as a guiding framework to organize and interpret the data and to highlight the interdependencies among various business model components. It provided a structured lens to examine value creation, value delivery and capture dimensions ensuring a comprehensive understanding of the retailer’s evolving strategies. Analysis involved multiple cycles of reading and re-reading the interview transcripts, meeting notes, and presentation materials to identify emerging information and patterns. Responses were color-coded to enhance clarity, facilitating the sorting of responses into appropriate themes and sections. This iterative approach allowed a deeper understanding of the data and the identification insights that may not have been apparent during the initial review. Careful attention was given to maintaining the contextual meaning of responses to ensure the integrity and authenticity of the analysis. The organized data were then interpreted to identify key challenges, success factors, and changes in business model components associated with the retailer's omnichannel transition. This analytical process ensured that the findings were grounded in the data and relevant for both academic literature and managerial practice. Table 1 below summarizes the findings and their mapping to business model dimensions, along with a short description. 4. Findings This section presents the empirical findings structured around two key dimensions: challenges encountered during the transition and success factors that enabled progress. Challenges and success factors are further categorized into value creation, value delivery or value capture dimension. 4.1 Challenges Value creating dimension Challenges within the value creation dimension are those that emerged in relation to HC’s key resources, activities and partners. There were three challenges perceived and expressed by HC within this dimension. The first challenge emerged to some degree from the external environment of the retailer and as such is largely beyond the direct control of the organization yet have significant implications. The challenge being the need to compete with digitally mature global retailers offering customers free shipment and product returns. These e-commerce giants often enjoy extensive logistical advantages. HC struggled to allocate resources to prioritize free delivery and product returns. The Group strategy and E-commerce Director emphasized that, “If you start to give free delivery and…… starts to get very low, you are not covering the cost ”. This challenge is related to both the activities of global competitors and the need to build efficient supply chains. The second challenge is related to the digital capability of suppliers. Unlike the physical store, where customers can physically inspect products, the online store requires detailed product information, including high-quality images, precise dimensions, and comprehensive descriptions to enhance the shopping experience and enable purchasing decisions. Many suppliers were not accustomed to providing such detailed digital assets, posing a challenge for the retailer. As stated, “ continuously educate them on the requirements for each of the channels…. beautiful customer experience is now replaced by a platform ”. This shows the challenges of aligning supplier capabilities with digital retail. The third challenge relates to real-time inventory synchronization. HC faced difficulties in achieving seamless inventory integration and visibility across all channels, which is crucial for efficient stock management and a consistent customer experience. The lack of real-time inventory synchronization leads to discrepancies between online and in-store stock availability, possibly resulting in stockouts, order cancellations, and customer dissatisfaction. As acknowledged “ We don't have the same stock in every store…it was important…that you have visibility on the quantity in each of the stores”. This shows the need for integrated systems to support HC’s omnichannel goals. Value delivery dimension Challenges within the value delivery dimension are those that emerged in relation to HC’s channels, customers and customer relationships. There were two challenges perceived and expressed by HC within this dimension. The first perceived challenge is related to the increasingly complex nature of customer behaviour. As customers engage with multiple channels their expectations change. The Group strategy and E-commerce Director expressed that: “ we can never say you are on top of a frictionless journey…. It’s a constant process and constant evolution”. HC emphasizes the dynamic nature of building and providing a frictionless customer journey that meets all expectations. This challenge is related to the integration of channels ensuring consistency in product availability and pricing, as well as providing customer support across channels. The second challenge is the challenge of translating the in-store experience to the online space. This involves the struggle to replicate the personalized, knowledgeable, and friendly interactions that customers experience in physical stores to their online platforms. This gap becomes pronounced when customers seek inspiration and ideas for gifting by relying on store displays and staff recommendations, factors that are harder to recreate in an online environment. As noted, “ human interaction that happens in-store can be difficult for our digital presence to replace……. fundamental to having success into the future” and “An excellent customer experience…… to translate that to online, where you've got essentially a computer screen.” Value capturing dimension Challenges within the value capture dimension are those that emerged in relation to the cost structures and revenue streams of HC. There was one challenge perceived and expressed by HC within this dimension. The challenge is one of limited financial resources when it comes to investing in advanced technology to connect channels. Implementing technology and systems requires substantial financial commitment, which is not always feasible. For example, HC´s virtual store was deprioritized to accommodate more immediate commercial improvements that aligned with HC´s business model. Additionally, upskilling and reskilling the team to keep up with changing technology and customer behaviour was also presented as a challenge which required time and resources. The Group strategy and E-commerce Director expressed that: “ it is resource intensive and time taking….to help that seamless experience,…to have robust IT system and also have a system that provides the best experience ”. Also “Investing in team, and resources and skills to bring it to next level …there's a lot of money that has to go”. 4.2 Success factors Value creating dimension Success factors within the value creation dimension are responses or actions taken by HC related to key resources, activities and partners. There were four success factors perceived and expressed by HC within this dimension. The first success factor relates to mitigating channel conflict and ensuring seamless omnichannel operation. To do this HC implemented structural adjustments. These included clarifying sales attribution mechanisms for in-store digital transactions and click-and-collect services such as who gets the sale when in-store staff sell via store iPad or through click-and-collect sale. Aligning performance metrics and incentives across channels encourages collaboration and reduces internal competition. The Group strategy and E-commerce Director expressed that: “it’s important one channel doesn't seem like a threat… omnichannel should be most important to everyone to survive and drive into the future”. The second success factor relates to ongoing technology and infrastructure upgrades to improve friction points in customer journeys. These included strategic platform upgrades to focus on customer experience. Plans to implement new platforms are essential for adding features, improving connectivity with customers, and creating a seamless user experience. Thoughtful design and reducing friction in digital interactions were critical to provide an intuitive and efficient customer journey. As noted “We implement a new platform…it allows us to put more features in there to connect better with the customer…. to reduce the number of clicks”. The third success factor relates to partner collaboration and supplier engagement. HC utilizes strong and longstanding relationships with local designers/suppliers, maintaining the unique value proposition of timely delivery and large collection of items. It maintains robust relationships with designers, despite their direct-to-consumer sales. HC organizes informational seminars with suppliers, helping them understand the unique demands of different sales channels and ensuring that product listings meet the expectations of online shoppers. The fourth success factor relates to HC´s brand identity, which is deeply rooted in local heritage and serves as a cultural and emotional anchor for customers. HC is the founder of Champion Green initiative, a movement to support local businesses, by inspiring people to buy local products and by providing small businesses with tips and toolkits to support their businesses. This connection fosters loyalty and differentiates the retailer in a competitive market. Value delivery dimension Success factors within the value delivery dimension are responses or actions taken by HC related to channels, customers and customer relationships. There were three success factors perceived and expressed by HC within this dimension. The first success factor relates to customer experience. A central theme in HC´s strategy is the prioritization of customer experience as a unique value proposition. Unlike global e-commerce platforms, HC emphasizes personalized service, local engagement, and experiential shopping. This is operationalized through continuous investment in staff development and in-store technological infrastructure and enabling employees to deliver high-quality service. The retailer is optimistic that its exceptional customer experience is the key to success. The knowledgeable and friendly in-store staff are the strength of HC, along with the well-curated displays at the store that inspire customers for gift shopping. The Group strategy and E-commerce Director expressed: “What can we provide that Amazon doesn’t provide? You know, and that is customer experience.” “Invest in people who want to bring that best-in-class experience as well” and “….but they're limited, their hands are tied, if the technology doesn't facilitate…” The second success factor relates to agile improvements. HC uses regular customer feedback and surveys. This provides HC with the ability to respond in an agile manner to changes in market trends, technology, and customer behaviour. The Group strategy and E-commerce Director expressed: “Regular customer surveys are important so that each touchpoint presents the customer what they are looking for”. And “The key lessons are to continue to invest in this space because it is so important….” The third success factor relates to the strategic use of social media. Social media is recognized by HC as an underutilized asset with significant potential for brand support and customer engagement. HC uses platforms such as Instagram to amplify customer testimonials and drive both awareness and sales. This approach transforms satisfied customers into brand ambassadors, enhancing reach and trust. The Group strategy and E-commerce Director expressed: “our customers are biggest brand advocate …we are using Instagram to drive sales and awareness”. Value capturing dimension Success factors within the value capture dimension are those that emerged in relation to the cost structures and revenue streams of HC. There was one success factor perceived and expressed by HC within this dimension. HC expressed that to deliver a digital experience that aligns with the brand’s in-store standards significant financial investment was required. The Group strategy and E-commerce Director expressed: “a lot of it requires not just the process and very good UX UI design, but it requires financial investment”. Below Table 1 provides a comprehensive overview of the challenges and success factors identified in this study and the corresponding business model dimension, accompanied by a concise illustrative example. Each challenge and success factor is assigned a unique reference code for clarity and ease of discussion later in the paper. Table 1 Summary of identified challenges and success factors Dimension Title Character Challenges Value creation C1: Challenges of efficient logistics Keeping pace with global online competitors and their operational agility. C2: Bridging digital divide Suppliers’ inability to provide digital product data and real-time information. C3: Challenges of Inventory synchronization Difficulty maintaining accurate cross-channel inventory visibility. Value delivery C4: Changing customer expectation The challenge of providing customer support across channels despite the changing nature of customer behaviour. C5: Replicating in-store experiences Translating sensory and personalized in-store experiences into online environments. Value capture C6: Resource constraints Limited resources for technology investments and workforce development/upskilling. Success factors Value creation S1: Process and Structural Adjustments Aligning incentives and performance metrics across channels to prevent internal competition. S2: Technology Investments Ongoing technology and infrastructure upgrades with a focus on customer experience to reduce friction points in the journey. S3: Supplier capability development Supporting suppliers by providing seminars in order to increase knowledge and understanding of the unique demands of different sales channels. S4: Building brand identity Strengthening local heritage-based brand identity. Value delivery S5: Exceptional customer experience Creating exceptional customer experience through investment in staff development and in-store technological infrastructure and enabling employees to deliver high-quality service. S6: Agile improvement Using regular customer feedback and surveys in order to provide improvements in an agile manner. S7: Social Media Using social media to engage customers and improve sales. Value capture S8: Financial Investment for digital experiences Investing in the design of digital experiences that aligns with the brand’s in-store standards. 5. Discussion This discussion synthesizes the challenges and success factors of SME, discussing their distribution through the lens of the BMC. Furthermore, it explores interconnections among components and the implications for SMEs navigating omnichannel transformation. 5.1 Mapping challenges and success factors to BMC This study shows that omnichannel retailing needs strategic adjustments across multiple components of the business model, which shape value creation, delivery, and capture within an omnichannel context. In the value creation dimension, challenges such as efficient logistics, free shipping expectations, and the digital maturity of suppliers emphasize the importance of developing integrated and technologically enabled supply chains to support omnichannel goals. These findings align with prior literature (Verhoef et al. 2021 ; Neslin 2022 ), which indicates that digital transformation has blurred traditional boundaries between online and offline operations, demanding enhanced coordination among partners. Supplier collaboration and local partnerships are increasingly recognized as critical factors in omnichannel supply chains, emphasizing that integration improves resilience and agility in fast-changing environments. However, we found the way HC is putting efforts to bridge the digital divide with its suppliers and designers by conducting seminars and training sessions to align online and offline capabilities are not widely discussed in the current literature. Furthermore, leveraging local heritage as a strategic resource reinforces brand authenticity and local identity. These approaches enhance operational agility and supply chain reliability through responsive networks and improve brand identity. In the value delivery dimension, the need to provide a frictionless omnichannel experience underscores the importance of seamless channel integration and consistent customer experience. This reflects the dynamic nature of customer expectations across channels and the difficulty of translating personalized, inspirational service into digital formats. This requires evolving channels and customer relationships through staff training and in-store technological infrastructure, along with agile improvement and process restructuring, to enable firms to adapt to changing expectations. These findings partly resonate with von Briel ( 2018 ) and Hansen & Sia ( 2015 ), who emphasize the role of organizational agility and integration in sustaining omnichannel business model. The customer journey, personalization, and frictionless channel integration are central to omnichannel experience, reinforcing the need for comprehensive strategies that align with omnichannel goals. Additionally, the strategic use of social media has significant potential for brand support and customer engagement by driving awareness and sales, as it facilitates brand-building and immersive experiences (Goraya et al. 2021 ; Pangarkar et al. 2022 ). However, findings from this study indicate that the retailer does not fully leverage social media’s potential, even though it represents a low-cost touchpoint for reaching and engaging customers. Encouragingly, it is planning to invest greater effort in social media marketing to enhance visibility, strengthen customer relationships, and support its omnichannel strategy. In the value capture dimension, SMEs face resource constraints that limit omnichannel development. However, investments in technology and people that align with in-store experience can enhance customer experience and revenue. This finding complements Chang and Li ( 2022 ) who found that seamless omnichannel experiences and information visibility are strong predictors of customer satisfaction and engagement. Also, competitiveness depends on integrating cost and revenue mechanisms with customer-centric strategies. Additionally, process and structural adjustments and aligning internal incentives with omnichannel goals, help the retailer move towards seamless retailing. Overall, mapping omnichannel challenges and success factors to the BMC highlights the strategic adjustments required across value creation, delivery, and capture. Integrated and technologically enabled supply chains, supplier collaboration, and leveraging local heritage strengthen agility and authenticity in fast-changing environments. Seamless channel integration and strategic use of social media enhance value delivery through consistent and personalized experiences. Finally, addressing resource constraints via targeted investments in technology and human capital, alongside process restructuring and incentive alignment, supports value capture and competitiveness. Collectively, these measures enable retailers to progress toward a coherent, frictionless omnichannel model. 5.2 Interconnectedness of business model components in seamless retailing This study reinforces and extends prior research (Zott & Amit 2010 ; Foss & Saebi 2018 ) that conceptualizes the business model as a system of interdependent activities. While the BMC is mostly seen as composed of nine components, this study highlights the explicit interconnections among them. By demonstrating the interconnectedness of BMC components in the seamless retail context, where challenges and success factors span multiple components, our findings provide empirical support for the systemic perspective of business model that was only vaguely mentioned in earlier works (Osterwalder & Pigneur 2010 ; Macha-Huamán et al. 2023). SMEs face complex, interrelated challenges when transitioning to seamless omnichannel retailing. These challenges do not occur in isolation, rather, they intersect across multiple components of BMC as shown in Fig. 1 . For example, Challenges of efficient logistics (C1) primarily influences the value creation dimension, impacting key partners and key activities, as shown in Fig. 1 at the intersection of these two components. To meet customer expectations for improved delivery and return processes, SMEs may need to reconfigure logistics and supply chains, necessitating changes in partnerships and operational activities, affecting channels, customer segments and revenue, shows as the black line emerging from C1 towards these components. Thus, C1 directly affects value creation, it also indirectly shapes customer segments and revenue streams, which belong to the value delivery and value capture dimensions. Similarly, bridging the digital divide (C2) exerts a direct effect on key partners within the value creation dimension, as retailers must collaborate with suppliers to ensure compatibility with online store requirements. Indirectly, this challenge influences channels and customer relationships in value delivery dimensions, since the digital maturity of suppliers can affect product presentation quality, including images and descriptions on digital platforms, thus affecting customer relationship and channel presentations. Challenges of inventory synchronization (C3) , another critical challenge within value creation, also impact value delivery and capture dimensions. Enhancing inventory visibility through real-time systems requires adjustments in key activities and key resources (shown as C3 at the intersection of these two components). This indirectly influences cost structures and strengthens value propositions, ultimately improving customer relationships. Furthermore, changing customer expectation (C4) , primarily a challenge within the value delivery dimension, extend across value creation and value capture dimensions. Consumers increasingly expect personalization, convenience, and seamless integration across channels, requiring SMEs to redesign channels, customer relationships, and value propositions. These behavioral shifts often require reconfiguring key activities such as marketing and service delivery and investing in key resources like advanced technology and agile improvements. Similarly, replicating in-store experience (C5) , a challenge rooted in the value delivery dimension, has significant implications for omnichannel strategies. Directly, it affects channels, as retailers need to design digital touchpoints that match the sensory and interactive aspects of physical stores. This often involves investing in technologies to reduce friction points in the digital journey, and mobile-enabled in-store experiences, which demand new capabilities and partnerships. Indirectly, these efforts affect key activities, and shape value propositions by enhancing perceived quality and trust. Thus, strengthen customer relationships through engagement and influence customer segments by attracting consumers who value experiential shopping. Lastly, the challenges of resource constraints (C6), present in cost structure component of value capture dimension, has indirect effects on value creation dimensions, affecting key activities and key resources. The success factors also illustrate interdependent and systemic patterns, where actions are taken to strengthen one part of the business model unlock progress across several other components. As depicted in Fig. 2 , these factors rarely operate within a single component of the BMC instead, they create multidirectional linkages that reinforce value creation, delivery, and capture simultaneously. For example, structural and process adjustments (S1) introduced to reduce channel conflict and align incentives, reside primarily within key activities in the value creation dimension. However, Fig. 2 demonstrates how these adjustments radiate outward into the value delivery dimension by strengthening channel coordination and creating a shared commitment to omnichannel goals. This alignment subsequently improves customer-facing processes and indirectly reinforces value capture through cost efficiencies and enhanced retention. Technology investments (S2) while positioned within key resources and activities, have effects that flow broadly. For example, platform upgrades enhance the usability of online channels and reduce friction points across the journey thus affecting value delivery and capture. While also looping back into key activities by enabling more efficient workflows and decision processes. This highlights that each investment generates improvements across multiple business model dimensions. Similarly, supplier capability development (S3) positioned within key partners, aimed at bridging the digital readiness gap among suppliers, initiates a series of interconnected outcomes. By enhancing product presentation and operational synchronization, S3 directly strengthens the retailer’s ability to deliver consistent and accurate information across touchpoints. As illustrated in Fig. 2 , these enhancements extend into channels and customer relationships by improving product visibility, reducing browsing friction, and enabling smoother customer navigation. The resulting improvements elevate the value proposition, as richer and more reliable product content increases perceived quality and trust, thereby supporting higher conversion rates and greater customer satisfaction. S3 thus exemplifies how targeted capability-building within partner networks can produce system‑wide benefits that reinforce both operational performance and customer experience. Building brand identity (S4) rooted in HC’s local heritage and long-standing partnerships, acts as more than a marketing asset. It becomes an integrative mechanism that aligns physical and digital touchpoints through consistent storytelling and experiential cues and contributes to the retailer’s omnichannel capabilities. By reinforcing customer trust and emotional connection, S4 strengthens customer relationships and supports channel coherence. A strong heritage-based identity differentiates the retailer from larger global competitors, offering a unique emotional connection that cannot easily substitute. Exceptional customer experience (S5) is perhaps the most pivotal success factor within the value delivery dimension. HC differentiates itself through personalized service, knowledgeable staff, and curated in‑store environments, these features are difficult for digital‑only competitors to imitate. S5 anchors customer relationships, however, its influence extends into a key resource in the value creation dimension and customer segments in value delivery. Delivering exceptional experience requires investments in staff training and in‑store technological infrastructure. These investments directly enhance service quality and indirectly support digital touchpoints, ensuring that online interactions reflect the same warmth and inspiration as in-store experiences. Success factors such as agile improvement (S6) and the strategic use of social media (S7) deepen these interconnections. Both enhance channel performance, customer relationships and value propositions through regular feedback collection, enabling the retailer to respond to shifting customer expectations with insights into key activities and resource allocation. Meanwhile, S7 further influences value capture by shaping customer perceptions and driving measurable sales effects. Finally, Financial Investment for digital experiences (S8) demonstrates how value capture reverberates back into value creation and delivery. Investments in digital touchpoint enhancement and service integration not only improve cost-revenue alignment but also strengthen the retailer’s ability to maintain seamless experiences. Each success factor contributes to multiple components of the BMC, and the improvements in one often emerge as success in others. This interconnectedness reflects the pattern observed with challenges, but in a reinforcing manner, while challenges demonstrate disruptions cascade across the system, success factors show how coordinated actions create capability development. The patterns shown in Fig. 2 highlight that the BMC functions as a systemic, interdependent model, and that effective omnichannel transition demands continuous alignment and iterative refinement across all dimensions of value creation, delivery, and capture. In line with Baldivia and Chowdhury (2025), these findings reinforce that seamless omnichannel success depends not on technology alone but on the coordinated alignment of resources, processes, partnerships, and customer‑centric strategies across the business model. 5.3 Implications for SMEs for seamless retailing For SMEs, transitioning toward seamless retailing presents significant challenges due to limited financial resources, constrained scalability, and the need for specialized digital expertise. Although advanced technologies such as AI, automation, and data analytics can greatly enhance customer experience, their adoption often requires substantial investment costs that many SMEs cannot absorb. Recent research by Oruganti ( 2025 ) showed that building resilient digital ecosystem requires aligning processes and partnership and top-down strategic intent, in a similar note, the findings of this study indicate that SMEs can pursue effective omnichannel strategies without relying heavily on expensive technologies by redesigning their business models to deliver customer value through more manageable, process‑driven and organizational adjustments. The study reinforce that financial limitations remain a persistent and well‑documented obstacle for SMEs. This was reflected in the identification of only a single challenge within the value capture dimension, emphasizing that financing constraints are structural and largely outside SMEs’ immediate control. Most challenges instead emerged within the value creation and value delivery dimensions, as did the majority of success factors. This pattern suggests that, despite financial constraints, SMEs can meaningfully advance their seamless retail initiatives by concentrating on modifications within these two dimensions. For example, improving internal processes, strengthening partner collaboration, reconfiguring channels, and enhancing customer experience capabilities. The mapping of challenges and success factors across BMC components illustrates the deeply interconnected nature of SME business models. Adjustments made in one part of the business model often produced positive effects elsewhere, underscoring the importance of adopting a holistic perspective rather than isolated, technology‑centric interventions. Moreover, these interdependencies highlight that business model adaptation in seamless retailing is not a one‑time initiative but a continuous and iterative process. SMEs must regularly reassess and realign their activities to maintain coherence between organizational goals, operational processes, and evolving market conditions. Overall, the findings suggest that SMEs can pursue seamless retailing effectively—not by matching the technological intensity of larger firms, but by strategically leveraging their inherent strength in flexibility, customer proximity, and capacity for targeted process innovation within value creation and delivery mechanisms. Three key implications that emerge from this study are seamless customer experience as a central element, organizational agility and adaptation, and holistic business model thinking. Delivering seamless customer experience needs integrated front and back-end processes to ensure coherence across channels and consistent brand engagement. This requires structural flexibility, employee upskilling, and incentive alignment to reduce channel conflict and support operational integration. Organizational agility and adaptation are critical for managing cross-functional changes inherent in omnichannel implementation, enabling SMEs to respond quickly to evolving consumer expectations and technological developments. Finally, using the BMC as a dynamic system can help SMEs to effectively align resources, processes, and partnerships with evolving consumer needs, facilitating a comprehensive approach to omnichannel retailing. Finally, the study shows that seamless omnichannel success requires integrated strategies that combine selective technology adoption with organizational and process redesign aligned to the broader business model. For retailers such as HC, value creation extends beyond product sales to include cultural storytelling, heritage, and personalized service, addressing functional, social, and emotional customer needs. Thus, customer segmentation for these retailers should move beyond demographics to incorporate motivations and usage contexts, such as gift-givers or design-oriented consumers. 6. Conclusion, limitations and future research This study explored the challenges and success factors associated with digital technology–enabled seamless retail and mapped them to the BMC framework. The findings indicate that effective seamless retail implementation requires not only technological advancement but also the coordinated alignment of people, processes, partnerships, and resources across the business model. Challenges such as inefficient logistics, difficulties in replicating in-store experiences online, resource prioritization constraints, and channel and inventory integration reveal the structural and operational complexities faced by SMEs. At the same time, success factors including enhanced customer experience, partner collaboration, strong local heritage, continuous improvement, and targeted technology investments highlight the multidimensional and systemic nature of seamless retail implementation. A key insight from the case study is that customer experience functions as an integrating mechanism spanning multiple BMC components, making organizational agility and structural alignment essential to delivering coherent experiences across channels. These findings underscore the importance of adopting a systemic and holistic approach to business model design. Rather than addressing challenges in isolation, SMEs can benefit from aligning and reconfiguring the interdependent components of their business model to enable seamless and consistent customer experiences, even under resource constraints and competitive market pressures. The analysis further reveals meaningful patterns of interdependence across the three core BMC dimensions: value creation, value delivery, and value capture. Within the value creation dimension, challenges were highly interconnected, directly or indirectly influencing nearly all nine BMC components. Success factors in this dimension demonstrated similar systemic effects, influencing multiple elements across value delivery and value capture, suggesting that improvements in value creation activities can trigger broader, system-wide enhancements in seamless retail businesses. In the value delivery dimension, challenges affected several components, while success factors primarily influenced value creation and value capture indirectly through their effects on channels and customer relationships, reinforcing the central role of customer experience in enabling seamless retail integration. In the value capture dimension, the primary challenge constrained value creation by limiting technology investments and resource allocation, whereas financial investments in digital capabilities acted as a critical success factor by enabling capability development and strengthening value creation and value delivery mechanisms. Collectively, these findings demonstrate that the BMC dimensions are deeply interconnected, with changes in one dimension influencing the structure and functioning of others, highlighting the systemic nature of digital technology–enabled seamless retail business models. This study contributes to the literature on digital technology–enabled seamless retail and business models by illustrating the Business Model Canvas as a systemic analytical framework for understanding how SMEs pursue seamless retail experiences under resource constraints. Specifically, the findings demonstrate that seamless retail emerges not from isolated technological adoption, but from the dynamic alignment and mutual interdependence of value creation, value delivery, and value capture mechanisms. By showing how challenges and success factors propagate across interconnected business model components, this study advances business model research by highlighting the BMC’s role in explaining systemic adaptation and coordination in digitally enabled retail environments. Furthermore, the study illustrates how the BMC can serve not only as a descriptive tool but also as a strategic framework to guide SMEs in aligning their organizational structures, processes, and partnerships to support seamless retail experiences. This study is not without limitations. First, the findings are based on a single case study, which provides rich contextual insights but limits generalizability across industries, firm sizes, and geographic contexts. Second, the reliance on qualitative data, including interviews and secondary sources, reflects the specific organizational context and perspectives of the focal SME. While the analysis identified both direct and indirect interdependencies across BMC components, additional relationships may exist beyond those captured in this study. Despite these limitations, the study underscores that digital technology–enabled seamless retail requires systemic alignment across value creation, delivery, and capture mechanisms. Enabling seamless retail experiences depends on more than technology adoption; it requires the strategic coordination of resources, organizational processes, partnerships, and customer‑centric capabilities. SMEs that adopt a systemic business model perspective may be better positioned to navigate resource constraints and deliver consistent and seamless customer experiences in increasingly complex and digitally shaped retail environments. Future research could extend these findings through comparative multi‑case studies across sectors and regions, as well as longitudinal studies examining how business model components evolve over time in seamless retail settings. Additional research on emerging digital technologies—such as AI‑driven personalization, virtual and augmented reality, and advanced analytics—examined through theoretical perspectives such as dynamic capabilities or resource orchestration, could deepen understanding of how SMEs build and sustain digital technology–enabled seamless retail business models. Declarations Ethical Approval and consent to participate This study did not involve any sensitive personal data, or procedures that might cause harm or discomfort to participants. Consequently, ethical approval was not sought, as the nature of the study did not necessitate it. Consent of publication All authors approve submission and publication. Funding This research received partial funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie grant agreement No. 765395. Author Contribution *A.L. wrote the original manuscript draft, J.J. prepared the final figures, all authors reviewed the manuscript.* Data Availability *The data supporting the findings of this study are available from the corresponding author upon reasonable request.* References Abdallah Y O, Shehab E, Al–Ashaab A (2022) Developing a digital transformation process in the manufacturing sector: Egyptian case study. Inf Syst E–Bus Manag. 20(3):613–630. https://doi.org/10.1007/s10257-022-00558-3 Ailawadi K L, Farris P W (2017) Managing multi- and omni-channel distribution: Metrics and research directions. 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Yin R K (2009) Case study research: Design and methods. Sage. Zincume P N, Maier M (2025) Human-centred SME factories: the future of work in SMEs under industry 5.0. Future Business Journal, 11(1), 133. Zott C, Amit R (2010) Business model design: An activity system perspective. Long Range Plann. 43(2–3):216–226. Zott C, Amit R, Massa L (2011) The business model: Recent developments and future research. J Manag. 37(4):1019–1042. Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-9299296","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":629719494,"identity":"647cf75b-27f1-4ae2-b352-37f0d0c3cc3c","order_by":0,"name":"Aparna Lohiya","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA50lEQVRIiWNgGAWjYBADGQYJxgYGhgoL4rXwQLSckSBJC5BkbCNCC//s5mefC2oYePilm9skfs6TyDM4wP7wAT4tEneOGc+ecYyBR3LOwTbJ3m0SxQYHeIwN8FpzI8GYmYeNgcfgRmKbBO82icQNB3jY8DpP/kb6Z2aefxAtkn/ngLSwP/+BT4vBjRxjZt42iBZp3gaQFgYzvO4yvHOmmJm3T4JHckZis7XMMYnEmYd5jPE6TO52+2Zmnm82cvwS6Q9vvqmxSew73v7wA15rJBAkC4TNjFc9XAtELX7DR8EoGAWjYMQCACBARBjxwduOAAAAAElFTkSuQmCC","orcid":"","institution":"Linnaeus University","correspondingAuthor":true,"prefix":"","firstName":"Aparna","middleName":"","lastName":"Lohiya","suffix":""},{"id":629719495,"identity":"8c551aca-a650-453b-8908-b7106196e129","order_by":1,"name":"John Jeansson","email":"","orcid":"","institution":"Linnaeus University","correspondingAuthor":false,"prefix":"","firstName":"John","middleName":"","lastName":"Jeansson","suffix":""},{"id":629719496,"identity":"d2658542-7b03-4d52-b257-fc9c6206f9e0","order_by":2,"name":"Anita Mirijamdotter","email":"","orcid":"","institution":"Linnaeus University","correspondingAuthor":false,"prefix":"","firstName":"Anita","middleName":"","lastName":"Mirijamdotter","suffix":""}],"badges":[],"createdAt":"2026-04-02 07:08:23","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-9299296/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-9299296/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":107948608,"identity":"1024e325-a379-47c0-a916-87fa7bccfc9a","added_by":"auto","created_at":"2026-04-28 00:22:39","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":113942,"visible":true,"origin":"","legend":"\u003cp\u003e\u003cem\u003eInterconnectedness of challenges.\u003c/em\u003e\u003c/p\u003e","description":"","filename":"floatimage1.png","url":"https://assets-eu.researchsquare.com/files/rs-9299296/v1/c115bca8d0797c784c5586fb.png"},{"id":107948609,"identity":"f93f7ace-b593-40ba-aa08-dffbd90ae6ae","added_by":"auto","created_at":"2026-04-28 00:22:39","extension":"png","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":118698,"visible":true,"origin":"","legend":"\u003cp\u003e\u003cem\u003eInterconnectedness of success factors.\u003c/em\u003e\u003c/p\u003e","description":"","filename":"floatimage2.png","url":"https://assets-eu.researchsquare.com/files/rs-9299296/v1/ce4ff935bb4204f60ebc17cf.png"},{"id":108007002,"identity":"889db7dc-800f-426e-bbd4-c3a868e275d5","added_by":"auto","created_at":"2026-04-28 12:58:12","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":650412,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-9299296/v1/27f8da49-34af-4a92-b0c8-ff3f313e1b78.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Managing Digital Technology–Enabled Seamless Retail: A Business Model Perspective ","fulltext":[{"header":"1. Introduction","content":"\u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eRetail businesses have undergone significant transformation from localized market exchanges to structured physical stores. Over time, innovations such as mail-order catalogues, television shopping, and later, e-commerce have significantly transformed how retailers interacted with consumers. In recent years, this transformation has been accelerated due to rapid technological advancements and widespread digital adoption (Ciasullo et al. \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Verhoef et al. \u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). These fast-paced technological changes have not only altered customer shopping behaviour but also introduced new complexities for businesses. At the same time, they have opened new value creating opportunities to create a deeper and long-lasting customer relationships. Customers are increasingly utilizing multiple complementary channels across pre-purchase, purchase and post-purchase stages to enhance their overall shopping journey (Verhoef et al. \u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Rahman et al. \u003cspan citationid=\"CR73\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Suh \u0026amp; Moradi \u003cspan citationid=\"CR81\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). This is blurring the distinction between physical and digital channels (Brynjolfsson et al. \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2013\u003c/span\u003e; Jocevski \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). While different channels serve distinct roles such as convenience, wide format and product information, price comparison, tactile feeling, and instant gratification (Verhoef et al. \u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e), customers increasingly expect a frictionless experience across all touchpoints.\u003c/p\u003e \u003cp\u003eCreating a seamless omnichannel experience increases the complexity of business processes and operations (Cocco \u0026amp; Demoulin, \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; H\u0026uuml;bner et al. \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2016\u003c/span\u003e; Li et al. \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). This complexity arises from the growing number of channels, the need to coordinate internal and external resources, and the necessity of forming strategic alliances with partners to deliver the seamless function. Verhoef et al. (\u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e) defined omnichannel management as the synergetic management of multiple available channels and customer touchpoints to optimize the customer experience across channels and the overall performance. Empirical studies suggest that omnichannel integration can improve process efficiency, strengthen customer retention, and increase transaction value (Cao \u0026amp; Li \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Ghiasuddin Taheri et al. \u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Asif et al. \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2026\u003c/span\u003e). However, effective implementation requires managing a wide range of customer touchpoints, including search, display, email, websites, and mobile apps (Verhoef et al. \u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). Despite its growing importance, small and medium sized enterprises (SMEs) often face unique challenges in adopting omnichannel strategies primarily due to limited resources and technological capabilities.\u003c/p\u003e \u003cp\u003eAlthough seamless retailing is widely recognized as the future of the industry (Asif et al. \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2026\u003c/span\u003e), strategies for successful implementation remain unclear. Existing research has addressed specific challenges(Chen et al. \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2018\u003c/span\u003e; Lewis et al. \u003cspan citationid=\"CR51\" class=\"CitationRef\"\u003e2014\u003c/span\u003e; Verhoef et al. \u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e) and the transition process(Hansen \u0026amp; Sia \u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; H\u0026uuml;bner et al. \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2016\u003c/span\u003e; Jocevski et al. \u003cspan citationid=\"CR44\" class=\"CitationRef\"\u003e2019\u003c/span\u003e), however the literature remains fragmented and relatively underdeveloped (Lehrer \u0026amp; Trenz \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Most studies emphasize operational and technological aspects, often focusing on large retailers, logistics, and IT systems, while paying limited attention to organizational perspectives and business model revision (Lehrer \u0026amp; Trenz \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Mishra et al. \u003cspan citationid=\"CR61\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Consequently, there is limited understanding of how SMEs can strategically revise their business models to support seamless retailing. In particular, the role of business model frameworks such as the Business Model Canvas (BMC) in guiding SMEs through this process is underexplored.\u003c/p\u003e \u003cp\u003eThis paper addresses this gap by investigating the challenges and success factors associated with seamless omnichannel implementation in an SME context using the BMC framework. Specifically, it identifies key challenges encountered during the transition and maps them to BMC components, and highlights success factors that enable seamless retailing. By doing so, the paper offers a structured approach for SMEs to evaluate and refine their business models for omnichannel implementation. This perspective extends beyond technology adoption, providing a holistic understanding of how SMEs can strategically align their business models with evolving customer expectations in a retail landscape involving multiple channels. By systematically aligning omnichannel challenges and success factors with the components of the BMC, this study advances both omnichannel retailing and business model literature. It further provides actionable insights for SMEs and other retailers seeking to navigate the complexities of the omnichannel environment.\u003c/p\u003e \u003cp\u003eThe paper is organized as follows: Section 2 presents the theoretical background, including digitalization, seamless retailing, and the BMC framework. Section 3 outlines the research methodology and case study context. Section 4 reports the findings, followed by Section 5, which discusses challenges and success factors mapped to the BMC and their implications for retailers. Finally, Section 6 concludes with key insights, limitations, and directions for future research.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e"},{"header":"2. Theoretical background","content":"\u003cdiv id=\"Sec3\" class=\"Section2\"\u003e \u003ch2\u003e2.1 Digitalization and digital technology\u0026ndash;enabled seamless retail\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eDigitalization is the adoption of digital technologies within organizations (Parviainen et al. \u003cspan citationid=\"CR69\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Tripathi \u003cspan citationid=\"CR84\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). It is changing the way businesses operate and enabling deeper and more dynamic relationships with customers, suppliers, and other stakeholders (Ciasullo et al. \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). It has transformed every industry, and the retail sector is no exception (Grewal et al. \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2017\u003c/span\u003e). This transformation accelerated significantly during the COVID-19 pandemic, with some businesses experiencing a decade\u0026rsquo;s worth of change in just a few years (Baldivia \u0026amp; Chowdhury \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Salvietti et al. \u003cspan citationid=\"CR77\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eDigitalization has blurred the boundaries between physical and digital spaces, altered traditional business models, and redefined the roles of involved actors (H\u0026uuml;bner et al. \u003cspan citationid=\"CR40\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Jocevski \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Verhoef et al. \u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). To manage digital transformation effectively, organizations may need a comprehensive strategy that addresses technological, organizational, and cultural dimensions (Parviainen et al. \u003cspan citationid=\"CR69\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Vial \u003cspan citationid=\"CR88\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Abdallah et al. (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) in their case study propose an eight‑stage transformation process, demonstrating how structured, phased progression can support capability development and reduce transformation risks. Incorporating such perspective reinforces the idea that seamless retailing demands continuous, organization‑wide adaptation rather than isolated technology adoption. As it is a complex and interconnected journey involving business model revision, capability development, and cultural renewal (Verhoef et al. \u003cspan citationid=\"CR85\" class=\"CitationRef\"\u003e2021\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eToday\u0026rsquo;s consumers interact with retailers through a wide range of touchpoints (Larke et al. \u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2018\u003c/span\u003e; Rahman et al. \u003cspan citationid=\"CR73\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). These omni-shoppers often browse online and purchase in-store or vice versa, requiring retailers to synchronize channels to provide seamless shopping experiences (Chang \u0026amp; Li \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Cocco \u0026amp; Demoulin \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; H\u0026uuml;bner et al. \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2016\u003c/span\u003e; Li et al. \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). As a result, transitioning to a seamless retail has become essential for retailers seeking to remain competitive in a dynamic and digitally driven landscape (Grewal et al. \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2017\u003c/span\u003e, Lohiya \u0026amp; Mirijamdotter \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Based on retailers\u0026rsquo; presence on internet channels, Kim and Chun (\u003cspan citationid=\"CR47\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) categorize retail channel strategies into four types: hybrid or multichannel strategy, offline-focused or passive online strategy, online-focused or pure-play strategy, and omnichannel strategy. Berman and Thelen (\u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) proposed a simplified model for categorizing the stages of channel synchronization, labelling them as level one, two, three, and four. In a more recent approach, Lohiya and Mirijamdotter (\u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) outlined the omnichannel transition process based on a literature review. They categorized them into four progressive stages: multichannel, crosschannel, early stage omnichannel and finally harmonized, where channels are fully synchronized and seamless from both retailer and customer perspectives.\u003c/p\u003e \u003cp\u003eThe core of omnichannel retailing lies in meeting customer needs seamlessly, anytime, anywhere, and through any preferred channel (De Sousa et al. \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2021\u003c/span\u003e, Lohiya \u0026amp; Mirijamdotter \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Retailers need to efficiently and accurately process orders regardless of the channel or location (Verhoef et al. \u003cspan citationid=\"CR85\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). However, many retailers remain constrained by outdated business models, which make them vulnerable to more agile and digitally mature competitors (Vial \u003cspan citationid=\"CR88\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Implementing a seamless approach is inherently complex and requires coordination among various actors. Delivering seamless customer experiences depends on logistics and supply chain integration, particularly real-time inventory visibility across channels (Davis-Sramek et al. 2020; Febriani et al. \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Mishra et al. \u003cspan citationid=\"CR62\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Song et al. \u003cspan citationid=\"CR78\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Recent work by Stoiber \u0026amp; Sch\u0026ouml;nig (\u003cspan citationid=\"CR79\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) shows that synchronizing operations requires redesigning business processes. These efforts are driven by digitalization and supported by broader organizational changes. In today\u0026rsquo;s retail landscape, omnichannel engagement is no longer merely a differentiating factor, it has become a strategic necessity for business continuity and long-term sustainability, particularly for retaining high-value and loyal customers (Cao \u0026amp; Li \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Li et al. \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e2025\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec4\" class=\"Section2\"\u003e \u003ch2\u003e2.2 Challenges and success factors for seamless retailing\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eRetailers undergoing digital transformation and implementing seamless omnichannel approach face a wide range of challenges (Barbosa \u0026amp; Casais \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; De Sousa et al. \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Radomska et al. \u003cspan citationid=\"CR72\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). A major challenge is the integration of channels, which requires seamless coordination across systems and departments (Cao \u0026amp; Li \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Lohiya \u0026amp; Mirijamdotter \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). The adoption of advanced digital technologies requires substantial investment in infrastructure and digital capabilities which can be challenging(Febriani et al. \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Ishfaq et al. \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Song et al. \u003cspan citationid=\"CR78\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Verhoef et al. \u003cspan citationid=\"CR85\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Vhatkar et al. \u003cspan citationid=\"CR87\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) particularly for SMEs. Supply chain coordination, including inventory visibility and logistics, adds further complexity and requires real-time data synchronization and agile operational design (Mishra et al. \u003cspan citationid=\"CR62\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Verhoef et al. \u003cspan citationid=\"CR86\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). Organizational resistance to change and gaps in employee skills also hinder transformation efforts (Barbosa \u0026amp; Casais \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Febriani et al. \u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). Although, customer data supports personalization across heterogeneous customer groups (Gomes \u0026amp; Meisen \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), managing and analyzing large volumes of customer and operational data requires advanced information systems and stricter data privacy standards. At the same time, consumers expect highly personalized, seamless experiences across all touchpoints while also demanding strong privacy protection (Bandara et al. \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Gerea \u0026amp; Herskovic \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Lehrer \u0026amp; Trenz \u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Thaichon et al. \u003cspan citationid=\"CR83\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Vhatkar et al. \u003cspan citationid=\"CR87\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). This increases pressure on firms to deliver fully integrated and adaptive services under strong governance and privacy standards(Aiolfi \u0026amp; Sabbadin \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Stoopendahl et al. \u003cspan citationid=\"CR80\" class=\"CitationRef\"\u003e2025\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003cp\u003eRecent studies emphasize the importance of aligning online and offline touchpoints, ensuring that customers receive continuity across digital and physical interactions (Ailawadi \u0026amp; Farris \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Neslin \u003cspan citationid=\"CR64\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Suh \u0026amp; Muradi 2023; Asif et al. \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2026\u003c/span\u003e). Furthermore, personalized marketing, customer engagement strategies, and an understanding of customer channel choices have emerged as essential, allowing firms to adapt offerings to individual preferences and behaviors. The strategic use of innovative technologies, such as advanced analytics and AI-driven tools, provides additional competitive advantages. These technologies support data-driven decision-making, optimize operations, and enhance the overall customer experience (GrowthFactor \u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2025\u003c/span\u003e).\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003eThe success factors for multiple channels and omnichannel retailing encompass technological integration (Lewis et al. \u003cspan citationid=\"CR51\" class=\"CitationRef\"\u003e2014\u003c/span\u003e; Saghiri et al. \u003cspan citationid=\"CR76\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; von Briel \u003cspan citationid=\"CR89\" class=\"CitationRef\"\u003e2018\u003c/span\u003e), customer experience enhancement (Brynjolfsson et al. \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2013\u003c/span\u003e; Do Vale et al. \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), and operational efficiencies. The extant literature highlights a few success factors that contribute to the effective implementation of omnichannel retailing. A central factor is technological integration, which enables the seamless flow of information and transactions across channels (Lewis et al. \u003cspan citationid=\"CR51\" class=\"CitationRef\"\u003e2014\u003c/span\u003e; Saghiri et al. \u003cspan citationid=\"CR76\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; von Briel \u003cspan citationid=\"CR89\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). Another key factor is the enhancement of customer experience, particularly in achieving seamlessness across touchpoints, which has been identified as a key driver of customer satisfaction and loyalty (Brynjolfsson et al. \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2013\u003c/span\u003e; Li et al. \u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Do Vale et al. \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Operational efficiency, including optimized logistics and supply chain coordination, further improves organizational capacity to deliver consistent experiences across channels.\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec5\" class=\"Section2\"\u003e \u003ch2\u003e2.3 Business model and business model canvas\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThe concept of the business model has long been an integral part of a firm. It describes how firms create, deliver, and capture value (Osterwalder \u0026amp; Pigneur \u003cspan citationid=\"CR67\" class=\"CitationRef\"\u003e2010\u003c/span\u003e; Teece \u003cspan citationid=\"CR82\" class=\"CitationRef\"\u003e2010\u003c/span\u003e; Zott et al. \u003cspan citationid=\"CR94\" class=\"CitationRef\"\u003e2011\u003c/span\u003e). Despite its widespread use, there is no universally accepted definition, as the term has been interpreted through various lenses and frameworks across disciplines, making it challenging to settle on a single definition (Amit \u0026amp; Zott \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2001\u003c/span\u003e; Foss \u0026amp; Saebi \u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2018\u003c/span\u003e; Kurti et al. \u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2021\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eThe relevance of the business model has grown significantly in the digital era. Digitalization has disrupted conventional ways of doing business, prompting the need for timely and effective changes in the business model (Lohiya \u0026amp; Mirijamdotter \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2026\u003c/span\u003e). This is essential as it offers avenues for value creation (Amit \u0026amp; Zott, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2001\u003c/span\u003e). The business model is a critical component of strategic management that enables organizations to stay competitive, innovative, and value-driven (Teece \u003cspan citationid=\"CR82\" class=\"CitationRef\"\u003e2010\u003c/span\u003e; Vial \u003cspan citationid=\"CR88\" class=\"CitationRef\"\u003e2019\u003c/span\u003e). Recent research by Oruganti (\u003cspan citationid=\"CR66\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) further shows that implementing digital transformation requires a holistic, ecosystem‑oriented logic, in which firms translate top‑down strategic intent into customer‑centric digital ecosystems by aligning internal process changes with external partner collaborations. This is particularly important in omnichannel retail as well, where seamless integration of physical and digital channels is required (Baldivia \u0026amp; Chowdhury \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Ishfaq et al. \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). In line with established literature, this study adopts the definition of a business model as the creation, delivery, and capture of value.\u003c/p\u003e \u003cp\u003eAs mentioned, several frameworks have been proposed to conceptualize business models, each offering distinct perspectives suited to different analytical contexts (Chesbrough \u0026amp; Rosenbloom \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2001\u003c/span\u003e; Johnson \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2010\u003c/span\u003e; Morris et al. \u003cspan citationid=\"CR63\" class=\"CitationRef\"\u003e2005\u003c/span\u003e; Zott et al. 2010; Bocken et al. \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). While these models differ in scope and application, they typically converge around the core dimensions of the business model, which are value creation, value delivery, and value capture, reflecting a systemic understanding of business model design.\u003c/p\u003e \u003cp\u003eThe Business Model Canvas (BMC) has emerged as one of the most extensively cited and widely adopted frameworks in both academic and managerial contexts (Fritscher \u0026amp; Pigneur \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). It consists of nine building blocks, namely customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure (Osterwalder \u0026amp; Pigneur \u003cspan citationid=\"CR67\" class=\"CitationRef\"\u003e2010\u003c/span\u003e). The level of detail in a business model depends on the contextual requirements in which it is used rather than the framework itself, allowing flexibility for practitioners and researchers to adapt it to various strategic, operational and industry specific settings without giving up clarity or analytical rigor (Bocken et al. \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). The BMC facilitates a systemic understanding of how an organization creates, delivers, and captures value, not by isolating individual components, but by examining how all the pieces connect to tell a story (Osterwalder \u0026amp; Pigneur \u003cspan citationid=\"CR67\" class=\"CitationRef\"\u003e2010\u003c/span\u003e). Thus, its structured yet flexible design makes it particularly suitable for analysing innovation, transformation, and strategic alignment.\u003c/p\u003e \u003cp\u003eDespite its strengths, the BMC has faced criticism. Some scholars argue that it omits competition as a building block (Marković \u0026amp; Furjan \u003cspan citationid=\"CR57\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Pratiwi \u0026amp; Chumaidiyah \u003cspan citationid=\"CR70\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). However, competition is generally considered part of the external environment rather than part of the business model components (Osterwalder \u0026amp; Pigneur \u003cspan citationid=\"CR67\" class=\"CitationRef\"\u003e2010\u003c/span\u003e). Others claim that the BMC is static (Khodaei \u0026amp; Scholten \u003cspan citationid=\"CR46\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Romero et al. \u003cspan citationid=\"CR74\" class=\"CitationRef\"\u003e2015\u003c/span\u003e), though it is not inherently static as it evolves with the business environment, and its effectiveness depends on regular updates (Fritscher \u0026amp; Pigneur \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). Concerns also exist regarding its tendency to oversimplify complex business dynamics (Miller et al. \u003cspan citationid=\"CR60\" class=\"CitationRef\"\u003e2016\u003c/span\u003e). However, the level of detail can be adjusted based on contextual needs (Diderich, \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Furthermore, Matricano \u0026amp; Liguori (\u003cspan citationid=\"CR58\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) note that the traditional BMC does not adequately incorporate digital technologies. However this study employs the BMC because digital technologies can be integrated into the framework as key resources or key activities depending on their specific role and context. The BMC remains appropriate due to its capacity to holistically represent the interrelated components of a business model. In today\u0026rsquo;s fast-changing environment business model design and redesign have become a continuous process of adaptation and reconfiguration as retailers transition from traditional to seamless omnichannel approach (Jocevski et al. \u003cspan citationid=\"CR44\" class=\"CitationRef\"\u003e2019\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec6\" class=\"Section2\"\u003e \u003ch2\u003e2.4 The context of an SME\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eSMEs play a vital role in the European economy, accounting for over 99% of all businesses and contributing significantly to employment, innovation, and regional development (Brodny \u0026amp; Tutak \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; European Commission \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Zincume \u0026amp; Maier \u003cspan citationid=\"CR92\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). The European Union defines SMEs as firms that employ fewer than 250 employees and has an annual turnover not exceeding EUR 50\u0026nbsp;million. These enterprises are often characterized by agility, close customer relationships, and lean organizational structures (Jeansson et al. \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2017\u003c/span\u003e; Akalpler \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). However, SMEs face challenges in adopting digital transformation, which requires strategic planning, technological investment, and workforce upskilling. Sagala and \u0026Ouml;ri (2024) emphasize the need for a holistic digitalization strategy tailored to SME contexts, identifying incremental adoption, continuous learning, and strategic alignment as key success factors. Despite increasing awareness of digital opportunities, SMEs continue to face challenges such as resource constraints, digital skills gaps, and technological complexity (Omowole et al. \u003cspan citationid=\"CR65\" class=\"CitationRef\"\u003e2024\u003c/span\u003e; Akalpler \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2025\u003c/span\u003e). These challenges are further compounded by the rapid pace of digital innovation and the growing need for cybersecurity and data governance.\u003c/p\u003e \u003cp\u003eIn the retail sector, the emergence of omnichannel strategies integrating online and offline customer experience seamlessly has intensified the digital demands on SMEs. While omnichannel retailing offers significant opportunities for enhancing customer experience and expanding market reach, the implementation of seamlessly integrated channels remains a major challenge for resource-constrained firms (Thaichon et al. \u003cspan citationid=\"CR83\" class=\"CitationRef\"\u003e2024\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e"},{"header":"3. Research methodology","content":"\u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003e3.1 Research design\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThis study adopts a qualitative research design, which is particularly suitable for exploring and gaining an in-depth understanding of complex organizational and managerial problems (Creswell \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). Qualitative methods allow for the collection and interpretation of rich, contextual data that reflect the experiences, perspectives, and strategies of individuals involved in organizational transformation (Bandyopadhyay \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Creswell \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2014\u003c/span\u003e; Yin \u003cspan citationid=\"CR91\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). In the context of this study, qualitative methods were chosen to investigate and explore the challenges and success factors in a retail business model during the transition to seamless retailing. Given that omnichannel retailing is still an emerging concept and an ongoing process, qualitative research deemed suitable to capture the insights and complexities involved (Salvietti et al. \u003cspan citationid=\"CR77\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Thaichon et al. \u003cspan citationid=\"CR83\" class=\"CitationRef\"\u003e2024\u003c/span\u003e). To operationalize this approach, a case study methodology was employed. The case study constitutes a comprehensive research strategy to address complex situations, using multiple sources of evidence (Lim \u003cspan citationid=\"CR53\" class=\"CitationRef\"\u003e2025\u003c/span\u003e; Yin \u003cspan citationid=\"CR91\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). This method allows researchers to look at the entirety of an organization and its complex system, focusing on the interconnectedness of the business model components. Moreover, current methodological scholarship highlights that case studies are highly effective for examining dynamic, context‑specific processes because they allow researchers to capture naturally occurring changes, evolving practices, and the influence of environmental and organizational conditions on decision‑making over time (R\u0026aring;bu \u0026amp; Binder \u003cspan citationid=\"CR71\" class=\"CitationRef\"\u003e2025\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eIt is an appropriate way to explore the novel phenomenon and to explain processes and challenges associated with the implementation of strategic management initiatives. Case studies are particularly valuable when the research seeks to understand the how and why of a complex organizational process and emerging practices, such as omnichannel transformation (Cao \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2014\u003c/span\u003e; Yazan \u003cspan citationid=\"CR90\" class=\"CitationRef\"\u003e2015\u003c/span\u003e; Yin \u003cspan citationid=\"CR91\" class=\"CitationRef\"\u003e2009\u003c/span\u003e). In this paper, the case study therefore provides a robust methodological foundation for capturing the nuanced, context‑specific evolution of the SME\u0026rsquo;s omnichannel transition, providing the depth and detail necessary to explain the interdependencies across business model components and the decision‑making processes driving them.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec9\" class=\"Section2\"\u003e \u003ch2\u003e3.2 The case company\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eHeritage Craft (HC), a pseudonym used to preserve confidentiality, is a medium-sized European retailer operating in the homeware, fashion, handicraft, and premium gift sectors. It was established around 60 years ago and has the largest collection of locally designed gifts. The retailer has a rich history and is recognized for its support for local designers and its commitment to quality.\u003c/p\u003e \u003cp\u003eThe retailer has over 200 employees and a strong network of local designers and suppliers. The organizational structure includes several key divisions such as e-commerce, physical retail, IT, and finance and accounting. HC follows a multiple channel strategy, serving both in-store and online customers. In recent years, HC has significantly increased its investment in digitalization, with the strategic goal of transitioning toward a fully integrated seamless model. This transition aims to provide customers with a seamless shopping experience across all touchpoints. By integrating its physical stores with its online platform, HC seeks to enhance customer convenience, improve operational efficiency, and remain competitive in a rapidly evolving retail landscape. With the case context established, the following section presents the empirical findings. These are organized around the key challenges and success factors encountered during HC\u0026rsquo;s omnichannel transition and are mapped to the BMC framework to illustrate their strategic implications.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec10\" class=\"Section2\"\u003e \u003ch2\u003e3.3 Data collection and analysis\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eFollowing Merriam\u0026rsquo;s (\u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2009\u003c/span\u003e) recommendations, case selection was purposeful and aligned with the research objectives to ensure both richness of data and relevance. The selected case, an SME retailer operating across multiple channels, was particularly suitable as it is actively investing in digitalization and channel integration with the aim of delivering a seamless customer experience. The retailer\u0026rsquo;s ongoing journey into online retailing, the challenges encountered in managing multiple channels, and the subsequent strategic responses present an opportunity to generate novel insights with both theoretical and practical relevance. This context provides a rich setting to explore how SMEs adapt their business models using the BMC framework during digital transformation.\u003c/p\u003e \u003cp\u003eThe primary method of data collection was semi-structured interviews, complemented by a range of secondary sources. Semi-structured interviews were chosen because they allow managers and decision-makers to share their own views, experiences, and strategies. This method makes it possible to capture rich, detailed insights that reflect the complexity of organizational transformation. To enrich the findings and provide a more comprehensive understanding of the case, data were collected from multiple sources including weekly meetings, industry reports, media coverage, and internal company documents. This diverse set of materials helped reduce the influence of potential biases associated with single-method research (Yin \u003cspan citationid=\"CR91\" class=\"CitationRef\"\u003e2009\u003c/span\u003e) and offered a balanced and comprehensive understanding of the retailer\u0026rsquo;s transition towards seamless retailing and created a more complete picture of challenges and success factors.\u003c/p\u003e \u003cp\u003eData collection involved the researcher attending weekly strategy meetings chaired by the Group Strategy and E-commerce Director over a period of six months. These meetings offered insights into ongoing digitalization and omnichannel related projects such as virtual stores, loyalty programs, subscription models, social media engagement, and virtual try-on technologies. In addition, in-depth interviews with the Group Strategy and E-commerce Director were conducted twice over the period of three years, each lasting over an hour. These interviews were recorded and transcribed for analysis. Secondary data were collected and analyzed from diverse publicly available sources, including websites, news articles, social media platforms, and official documents. This secondary data provided additional contextual insights into the research and helped to corroborate and enrich the findings derived from the primary data collection.\u003c/p\u003e \u003cp\u003eThe data analysis followed a systematic and iterative approach aimed at understanding the retailer\u0026rsquo;s business model and changes during the move towards omnichannel. The BMC was used as a guiding framework to organize and interpret the data and to highlight the interdependencies among various business model components. It provided a structured lens to examine value creation, value delivery and capture dimensions ensuring a comprehensive understanding of the retailer\u0026rsquo;s evolving strategies. Analysis involved multiple cycles of reading and re-reading the interview transcripts, meeting notes, and presentation materials to identify emerging information and patterns. Responses were color-coded to enhance clarity, facilitating the sorting of responses into appropriate themes and sections. This iterative approach allowed a deeper understanding of the data and the identification insights that may not have been apparent during the initial review. Careful attention was given to maintaining the contextual meaning of responses to ensure the integrity and authenticity of the analysis.\u003c/p\u003e \u003cp\u003eThe organized data were then interpreted to identify key challenges, success factors, and changes in business model components associated with the retailer's omnichannel transition. This analytical process ensured that the findings were grounded in the data and relevant for both academic literature and managerial practice. Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e below summarizes the findings and their mapping to business model dimensions, along with a short description.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e"},{"header":"4. Findings","content":"\u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThis section presents the empirical findings structured around two key dimensions: challenges encountered during the transition and success factors that enabled progress. Challenges and success factors are further categorized into value creation, value delivery or value capture dimension.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003cdiv id=\"Sec12\" class=\"Section2\"\u003e \u003ch2\u003e4.1 Challenges\u003c/h2\u003e \u003cp\u003e \u003cb\u003eValue creating dimension\u003c/b\u003e \u003c/p\u003e \u003cp\u003eChallenges within the value creation dimension are those that emerged in relation to HC\u0026rsquo;s key resources, activities and partners. There were three challenges perceived and expressed by HC within this dimension. The first challenge emerged to some degree from the external environment of the retailer and as such is largely beyond the direct control of the organization yet have significant implications. The challenge being the need to compete with digitally mature global retailers offering customers free shipment and product returns. These e-commerce giants often enjoy extensive logistical advantages. HC struggled to allocate resources to prioritize free delivery and product returns. The Group strategy and E-commerce Director emphasized that, \u003cem\u003e\u0026ldquo;If you start to give free delivery and\u0026hellip;\u0026hellip; starts to get very low, you are not covering the cost\u003c/em\u003e\u0026rdquo;. This challenge is related to both the activities of global competitors and the need to build efficient supply chains.\u003c/p\u003e \u003cp\u003eThe second challenge is related to the digital capability of suppliers. Unlike the physical store, where customers can physically inspect products, the online store requires detailed product information, including high-quality images, precise dimensions, and comprehensive descriptions to enhance the shopping experience and enable purchasing decisions. Many suppliers were not accustomed to providing such detailed digital assets, posing a challenge for the retailer. As stated, \u0026ldquo;\u003cem\u003econtinuously educate them on the requirements for each of the channels\u0026hellip;. beautiful customer experience is now replaced by a platform\u003c/em\u003e\u0026rdquo;. This shows the challenges of aligning supplier capabilities with digital retail.\u003c/p\u003e \u003cp\u003eThe third challenge relates to real-time inventory synchronization. HC faced difficulties in achieving seamless inventory integration and visibility across all channels, which is crucial for efficient stock management and a consistent customer experience. The lack of real-time inventory synchronization leads to discrepancies between online and in-store stock availability, possibly resulting in stockouts, order cancellations, and customer dissatisfaction. As acknowledged \u0026ldquo;\u003cem\u003eWe don't have the same stock in every store\u0026hellip;it was important\u0026hellip;that you have visibility on the quantity in each of the stores\u0026rdquo;.\u003c/em\u003e This shows the need for integrated systems to support HC\u0026rsquo;s omnichannel goals.\u003c/p\u003e \u003cp\u003e \u003cb\u003eValue delivery dimension\u003c/b\u003e \u003c/p\u003e \u003cp\u003eChallenges within the value delivery dimension are those that emerged in relation to HC\u0026rsquo;s channels, customers and customer relationships. There were two challenges perceived and expressed by HC within this dimension. The first perceived challenge is related to the increasingly complex nature of customer behaviour. As customers engage with multiple channels their expectations change. The Group strategy and E-commerce Director expressed that: \u0026ldquo;\u003cem\u003ewe can never say you are on top of a frictionless journey\u0026hellip;. It\u0026rsquo;s a constant process and constant evolution\u0026rdquo;.\u003c/em\u003e HC emphasizes the dynamic nature of building and providing a frictionless customer journey that meets all expectations. This challenge is related to the integration of channels ensuring consistency in product availability and pricing, as well as providing customer support across channels.\u003c/p\u003e \u003cp\u003eThe second challenge is the challenge of translating the in-store experience to the online space. This involves the struggle to replicate the personalized, knowledgeable, and friendly interactions that customers experience in physical stores to their online platforms. This gap becomes pronounced when customers seek inspiration and ideas for gifting by relying on store displays and staff recommendations, factors that are harder to recreate in an online environment. As noted, \u0026ldquo;\u003cem\u003ehuman interaction that happens in-store can be difficult for our digital presence to replace\u0026hellip;\u0026hellip;. fundamental to having success into the future\u0026rdquo;\u003c/em\u003e and \u003cem\u003e\u0026ldquo;An excellent customer experience\u0026hellip;\u0026hellip; to translate that to online, where you've got essentially a computer screen.\u0026rdquo;\u003c/em\u003e\u003c/p\u003e \u003cp\u003e \u003cb\u003eValue capturing dimension\u003c/b\u003e \u003c/p\u003e \u003cp\u003eChallenges within the value capture dimension are those that emerged in relation to the cost structures and revenue streams of HC. There was one challenge perceived and expressed by HC within this dimension. The challenge is one of limited financial resources when it comes to investing in advanced technology to connect channels. Implementing technology and systems requires substantial financial commitment, which is not always feasible. For example, HC\u0026acute;s virtual store was deprioritized to accommodate more immediate commercial improvements that aligned with HC\u0026acute;s business model. Additionally, upskilling and reskilling the team to keep up with changing technology and customer behaviour was also presented as a challenge which required time and resources. The Group strategy and E-commerce Director expressed that: \u0026ldquo;\u003cem\u003eit is resource intensive and time taking\u0026hellip;.to help that seamless experience,\u0026hellip;to have robust IT system and also have a system that provides the best experience\u003c/em\u003e\u0026rdquo;. Also \u003cem\u003e\u0026ldquo;Investing in team, and resources and skills to bring it to next level \u0026hellip;there's a lot of money that has to go\u0026rdquo;.\u003c/em\u003e\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec13\" class=\"Section2\"\u003e \u003ch2\u003e4.2 Success factors\u003c/h2\u003e \u003cp\u003e \u003cb\u003eValue creating dimension\u003c/b\u003e \u003c/p\u003e \u003cp\u003eSuccess factors within the value creation dimension are responses or actions taken by HC related to key resources, activities and partners. There were four success factors perceived and expressed by HC within this dimension. The first success factor relates to mitigating channel conflict and ensuring seamless omnichannel operation. To do this HC implemented structural adjustments. These included clarifying sales attribution mechanisms for in-store digital transactions and click-and-collect services such as who gets the sale when in-store staff sell via store iPad or through click-and-collect sale. Aligning performance metrics and incentives across channels encourages collaboration and reduces internal competition. The Group strategy and E-commerce Director expressed that: \u003cem\u003e\u0026ldquo;it\u0026rsquo;s important one channel doesn't seem like a threat\u0026hellip; omnichannel should be most important to everyone to survive and drive into the future\u0026rdquo;.\u003c/em\u003e\u003c/p\u003e \u003cp\u003eThe second success factor relates to ongoing technology and infrastructure upgrades to improve friction points in customer journeys. These included strategic platform upgrades to focus on customer experience. Plans to implement new platforms are essential for adding features, improving connectivity with customers, and creating a seamless user experience. Thoughtful design and reducing friction in digital interactions were critical to provide an intuitive and efficient customer journey. As noted \u003cem\u003e\u0026ldquo;We implement a new platform\u0026hellip;it allows us to put more features in there to connect better with the customer\u0026hellip;. to reduce the number of clicks\u0026rdquo;.\u003c/em\u003e\u003c/p\u003e \u003cp\u003eThe third success factor relates to partner collaboration and supplier engagement. HC utilizes strong and longstanding relationships with local designers/suppliers, maintaining the unique value proposition of timely delivery and large collection of items. It maintains robust relationships with designers, despite their direct-to-consumer sales. HC organizes informational seminars with suppliers, helping them understand the unique demands of different sales channels and ensuring that product listings meet the expectations of online shoppers.\u003c/p\u003e \u003cp\u003eThe fourth success factor relates to HC\u0026acute;s brand identity, which is deeply rooted in local heritage and serves as a cultural and emotional anchor for customers. HC is the founder of Champion Green initiative, a movement to support local businesses, by inspiring people to buy local products and by providing small businesses with tips and toolkits to support their businesses. This connection fosters loyalty and differentiates the retailer in a competitive market.\u003c/p\u003e \u003cp\u003e \u003cb\u003eValue delivery dimension\u003c/b\u003e \u003c/p\u003e \u003cp\u003eSuccess factors within the value delivery dimension are responses or actions taken by HC related to channels, customers and customer relationships. There were three success factors perceived and expressed by HC within this dimension. The first success factor relates to customer experience. A central theme in HC\u0026acute;s strategy is the prioritization of customer experience as a unique value proposition. Unlike global e-commerce platforms, HC emphasizes personalized service, local engagement, and experiential shopping. This is operationalized through continuous investment in staff development and in-store technological infrastructure and enabling employees to deliver high-quality service. The retailer is optimistic that its exceptional customer experience is the key to success. The knowledgeable and friendly in-store staff are the strength of HC, along with the well-curated displays at the store that inspire customers for gift shopping. The Group strategy and E-commerce Director expressed: \u003cem\u003e\u0026ldquo;What can we provide that Amazon doesn\u0026rsquo;t provide? You know, and that is customer experience.\u0026rdquo; \u0026ldquo;Invest in people who want to bring that best-in-class experience as well\u0026rdquo; and \u0026ldquo;\u0026hellip;.but they're limited, their hands are tied, if the technology doesn't facilitate\u0026hellip;\u0026rdquo;\u003c/em\u003e\u003c/p\u003e \u003cp\u003eThe second success factor relates to agile improvements. HC uses regular customer feedback and surveys. This provides HC with the ability to respond in an agile manner to changes in market trends, technology, and customer behaviour. The Group strategy and E-commerce Director expressed: \u003cem\u003e\u0026ldquo;Regular customer surveys are important so that each touchpoint presents the customer what they are looking for\u0026rdquo;. And \u0026ldquo;The key lessons are to continue to invest in this space because it is so important\u0026hellip;.\u0026rdquo;\u003c/em\u003e\u003c/p\u003e \u003cp\u003eThe third success factor relates to the strategic use of social media. Social media is recognized by HC as an underutilized asset with significant potential for brand support and customer engagement. HC uses platforms such as Instagram to amplify customer testimonials and drive both awareness and sales. This approach transforms satisfied customers into brand ambassadors, enhancing reach and trust. The Group strategy and E-commerce Director expressed: \u003cem\u003e\u0026ldquo;our customers are biggest brand advocate \u0026hellip;we are using Instagram to drive sales and awareness\u0026rdquo;.\u003c/em\u003e\u003c/p\u003e \u003cp\u003e \u003cb\u003eValue capturing dimension\u003c/b\u003e \u003c/p\u003e \u003cp\u003eSuccess factors within the value capture dimension are those that emerged in relation to the cost structures and revenue streams of HC. There was one success factor perceived and expressed by HC within this dimension. HC expressed that to deliver a digital experience that aligns with the brand\u0026rsquo;s in-store standards significant financial investment was required. The Group strategy and E-commerce Director expressed: \u003cem\u003e\u0026ldquo;a lot of it requires not just the process and very good UX UI design, but it requires financial investment\u0026rdquo;.\u003c/em\u003e\u003c/p\u003e \u003cp\u003eBelow Table \u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e provides a comprehensive overview of the challenges and success factors identified in this study and the corresponding business model dimension, accompanied by a concise illustrative example. Each challenge and success factor is assigned a unique reference code for clarity and ease of discussion later in the paper.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eSummary of identified challenges and success factors\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"5\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eDimension\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c4\" namest=\"c3\"\u003e \u003cp\u003eTitle\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eCharacter\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\" morerows=\"5\" rowspan=\"6\"\u003e \u003cp\u003e\u003cb\u003eChallenges\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\" morerows=\"2\" rowspan=\"3\"\u003e \u003cp\u003eValue creation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eC1: Challenges of efficient logistics\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eKeeping pace with global online competitors and their operational agility.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eC2: Bridging digital divide\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eSuppliers\u0026rsquo; inability to provide digital product data and real-time information.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eC3: Challenges of Inventory synchronization\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eDifficulty maintaining accurate cross-channel inventory visibility.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c2\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eValue delivery\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eC4: Changing customer expectation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eThe challenge of providing customer support across channels despite the changing nature of customer behaviour.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eC5: Replicating in-store experiences\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eTranslating sensory and personalized in-store experiences into online environments.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eValue capture\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eC6: Resource constraints\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eLimited resources for technology investments and workforce development/upskilling.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\" morerows=\"7\" rowspan=\"8\"\u003e \u003cp\u003e\u003cb\u003eSuccess factors\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\" morerows=\"3\" rowspan=\"4\"\u003e \u003cp\u003eValue creation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS1: Process and Structural Adjustments\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eAligning incentives and performance metrics across channels to prevent internal competition.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS2: Technology Investments\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eOngoing technology and infrastructure upgrades with a focus on customer experience to reduce friction points in the journey.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS3: Supplier capability development\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eSupporting suppliers by providing seminars in order to increase knowledge and understanding of the unique demands of different sales channels.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS4: Building brand identity\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eStrengthening local heritage-based brand identity.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c2\" morerows=\"2\" rowspan=\"3\"\u003e \u003cp\u003eValue delivery\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS5: Exceptional customer experience\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eCreating exceptional customer experience through investment in staff development and in-store technological infrastructure and enabling employees to deliver high-quality service.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS6: Agile improvement\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eUsing regular customer feedback and surveys in order to provide improvements in an agile manner.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS7: Social Media\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eUsing social media to engage customers and improve sales.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eValue capture\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eS8: Financial Investment for digital experiences\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c5\" namest=\"c4\"\u003e \u003cp\u003eInvesting in the design of digital experiences that aligns with the brand\u0026rsquo;s in-store standards.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e"},{"header":"5. Discussion","content":"\u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThis discussion synthesizes the challenges and success factors of SME, discussing their distribution through the lens of the BMC. Furthermore, it explores interconnections among components and the implications for SMEs navigating omnichannel transformation.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003cdiv id=\"Sec15\" class=\"Section2\"\u003e \u003ch2\u003e5.1 Mapping challenges and success factors to BMC\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThis study shows that omnichannel retailing needs strategic adjustments across multiple components of the business model, which shape value creation, delivery, and capture within an omnichannel context. In the value creation dimension, challenges such as efficient logistics, free shipping expectations, and the digital maturity of suppliers emphasize the importance of developing integrated and technologically enabled supply chains to support omnichannel goals. These findings align with prior literature (Verhoef et al. \u003cspan citationid=\"CR85\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Neslin \u003cspan citationid=\"CR64\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), which indicates that digital transformation has blurred traditional boundaries between online and offline operations, demanding enhanced coordination among partners. Supplier collaboration and local partnerships are increasingly recognized as critical factors in omnichannel supply chains, emphasizing that integration improves resilience and agility in fast-changing environments. However, we found the way HC is putting efforts to bridge the digital divide with its suppliers and designers by conducting seminars and training sessions to align online and offline capabilities are not widely discussed in the current literature. Furthermore, leveraging local heritage as a strategic resource reinforces brand authenticity and local identity. These approaches enhance operational agility and supply chain reliability through responsive networks and improve brand identity.\u003c/p\u003e \u003cp\u003eIn the value delivery dimension, the need to provide a frictionless omnichannel experience underscores the importance of seamless channel integration and consistent customer experience. This reflects the dynamic nature of customer expectations across channels and the difficulty of translating personalized, inspirational service into digital formats. This requires evolving channels and customer relationships through staff training and in-store technological infrastructure, along with agile improvement and process restructuring, to enable firms to adapt to changing expectations. These findings partly resonate with von Briel (\u003cspan citationid=\"CR89\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) and Hansen \u0026amp; Sia (\u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2015\u003c/span\u003e), who emphasize the role of organizational agility and integration in sustaining omnichannel business model. The customer journey, personalization, and frictionless channel integration are central to omnichannel experience, reinforcing the need for comprehensive strategies that align with omnichannel goals. Additionally, the strategic use of social media has significant potential for brand support and customer engagement by driving awareness and sales, as it facilitates brand-building and immersive experiences (Goraya et al. \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Pangarkar et al. \u003cspan citationid=\"CR68\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). However, findings from this study indicate that the retailer does not fully leverage social media\u0026rsquo;s potential, even though it represents a low-cost touchpoint for reaching and engaging customers. Encouragingly, it is planning to invest greater effort in social media marketing to enhance visibility, strengthen customer relationships, and support its omnichannel strategy.\u003c/p\u003e \u003cp\u003eIn the value capture dimension, SMEs face resource constraints that limit omnichannel development. However, investments in technology and people that align with in-store experience can enhance customer experience and revenue. This finding complements Chang and Li (\u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) who found that seamless omnichannel experiences and information visibility are strong predictors of customer satisfaction and engagement. Also, competitiveness depends on integrating cost and revenue mechanisms with customer-centric strategies. Additionally, process and structural adjustments and aligning internal incentives with omnichannel goals, help the retailer move towards seamless retailing.\u003c/p\u003e \u003cp\u003eOverall, mapping omnichannel challenges and success factors to the BMC highlights the strategic adjustments required across value creation, delivery, and capture. Integrated and technologically enabled supply chains, supplier collaboration, and leveraging local heritage strengthen agility and authenticity in fast-changing environments. Seamless channel integration and strategic use of social media enhance value delivery through consistent and personalized experiences. Finally, addressing resource constraints via targeted investments in technology and human capital, alongside process restructuring and incentive alignment, supports value capture and competitiveness. Collectively, these measures enable retailers to progress toward a coherent, frictionless omnichannel model.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec16\" class=\"Section2\"\u003e \u003ch2\u003e5.2 Interconnectedness of business model components in seamless retailing\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThis study reinforces and extends prior research (Zott \u0026amp; Amit \u003cspan citationid=\"CR93\" class=\"CitationRef\"\u003e2010\u003c/span\u003e; Foss \u0026amp; Saebi \u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) that conceptualizes the business model as a system of interdependent activities. While the BMC is mostly seen as composed of nine components, this study highlights the explicit interconnections among them. By demonstrating the interconnectedness of BMC components in the seamless retail context, where challenges and success factors span multiple components, our findings provide empirical support for the systemic perspective of business model that was only vaguely mentioned in earlier works (Osterwalder \u0026amp; Pigneur \u003cspan citationid=\"CR67\" class=\"CitationRef\"\u003e2010\u003c/span\u003e; Macha-Huam\u0026aacute;n et al. 2023).\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eSMEs face complex, interrelated challenges when transitioning to seamless omnichannel retailing. These challenges do not occur in isolation, rather, they intersect across multiple components of BMC as shown in Fig.\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e. For example, \u003cem\u003eChallenges of efficient logistics (C1)\u003c/em\u003e primarily influences the value creation dimension, impacting key partners and key activities, as shown in Fig.\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e at the intersection of these two components. To meet customer expectations for improved delivery and return processes, SMEs may need to reconfigure logistics and supply chains, necessitating changes in partnerships and operational activities, affecting channels, customer segments and revenue, shows as the black line emerging from C1 towards these components. Thus, \u003cem\u003eC1\u003c/em\u003e directly affects value creation, it also indirectly shapes customer segments and revenue streams, which belong to the value delivery and value capture dimensions.\u003c/p\u003e \u003cp\u003eSimilarly, \u003cem\u003ebridging the digital divide (C2)\u003c/em\u003e exerts a direct effect on key partners within the value creation dimension, as retailers must collaborate with suppliers to ensure compatibility with online store requirements. Indirectly, this challenge influences channels and customer relationships in value delivery dimensions, since the digital maturity of suppliers can affect product presentation quality, including images and descriptions on digital platforms, thus affecting customer relationship and channel presentations.\u003c/p\u003e \u003cp\u003e \u003cem\u003eChallenges of inventory synchronization (C3)\u003c/em\u003e, another critical challenge within value creation, also impact value delivery and capture dimensions. Enhancing inventory visibility through real-time systems requires adjustments in key activities and key resources (shown as C3 at the intersection of these two components). This indirectly influences cost structures and strengthens value propositions, ultimately improving customer relationships. Furthermore, \u003cem\u003echanging customer expectation (C4)\u003c/em\u003e, primarily a challenge within the value delivery dimension, extend across value creation and value capture dimensions. Consumers increasingly expect personalization, convenience, and seamless integration across channels, requiring SMEs to redesign channels, customer relationships, and value propositions. These behavioral shifts often require reconfiguring key activities such as marketing and service delivery and investing in key resources like advanced technology and agile improvements.\u003c/p\u003e \u003cp\u003eSimilarly, \u003cem\u003ereplicating in-store experience (C5)\u003c/em\u003e, a challenge rooted in the value delivery dimension, has significant implications for omnichannel strategies. Directly, it affects channels, as retailers need to design digital touchpoints that match the sensory and interactive aspects of physical stores. This often involves investing in technologies to reduce friction points in the digital journey, and mobile-enabled in-store experiences, which demand new capabilities and partnerships. Indirectly, these efforts affect key activities, and shape value propositions by enhancing perceived quality and trust. Thus, strengthen customer relationships through engagement and influence customer segments by attracting consumers who value experiential shopping. Lastly, the challenges of \u003cem\u003eresource constraints\u003c/em\u003e (C6), present in cost structure component of value capture dimension, has indirect effects on value creation dimensions, affecting key activities and key resources.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThe success factors also illustrate interdependent and systemic patterns, where actions are taken to strengthen one part of the business model unlock progress across several other components. As depicted in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e, these factors rarely operate within a single component of the BMC instead, they create multidirectional linkages that reinforce value creation, delivery, and capture simultaneously. For example, \u003cem\u003estructural and process adjustments\u003c/em\u003e (S1) introduced to reduce channel conflict and align incentives, reside primarily within key activities in the value creation dimension. However, Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e demonstrates how these adjustments radiate outward into the value delivery dimension by strengthening channel coordination and creating a shared commitment to omnichannel goals. This alignment subsequently improves customer-facing processes and indirectly reinforces value capture through cost efficiencies and enhanced retention.\u003c/p\u003e \u003cp\u003e \u003cem\u003eTechnology investments\u003c/em\u003e (S2) while positioned within key resources and activities, have effects that flow broadly. For example, platform upgrades enhance the usability of online channels and reduce friction points across the journey thus affecting value delivery and capture. While also looping back into key activities by enabling more efficient workflows and decision processes. This highlights that each investment generates improvements across multiple business model dimensions. Similarly, \u003cem\u003esupplier capability development\u003c/em\u003e (S3) positioned within key partners, aimed at bridging the digital readiness gap among suppliers, initiates a series of interconnected outcomes. By enhancing product presentation and operational synchronization, S3 directly strengthens the retailer\u0026rsquo;s ability to deliver consistent and accurate information across touchpoints. As illustrated in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e, these enhancements extend into channels and customer relationships by improving product visibility, reducing browsing friction, and enabling smoother customer navigation. The resulting improvements elevate the value proposition, as richer and more reliable product content increases perceived quality and trust, thereby supporting higher conversion rates and greater customer satisfaction. S3 thus exemplifies how targeted capability-building within partner networks can produce system‑wide benefits that reinforce both operational performance and customer experience.\u003c/p\u003e \u003cp\u003e \u003cem\u003eBuilding brand identity\u003c/em\u003e (S4) rooted in HC\u0026rsquo;s local heritage and long-standing partnerships, acts as more than a marketing asset. It becomes an integrative mechanism that aligns physical and digital touchpoints through consistent storytelling and experiential cues and contributes to the retailer\u0026rsquo;s omnichannel capabilities. By reinforcing customer trust and emotional connection, S4 strengthens customer relationships and supports channel coherence. A strong heritage-based identity differentiates the retailer from larger global competitors, offering a unique emotional connection that cannot easily substitute.\u003c/p\u003e \u003cp\u003e \u003cem\u003eExceptional customer experience\u003c/em\u003e (S5) is perhaps the most pivotal success factor within the value delivery dimension. HC differentiates itself through personalized service, knowledgeable staff, and curated in‑store environments, these features are difficult for digital‑only competitors to imitate. S5 anchors customer relationships, however, its influence extends into a key resource in the value creation dimension and customer segments in value delivery. Delivering exceptional experience requires investments in staff training and in‑store technological infrastructure. These investments directly enhance service quality and indirectly support digital touchpoints, ensuring that online interactions reflect the same warmth and inspiration as in-store experiences.\u003c/p\u003e \u003cp\u003eSuccess factors such as \u003cem\u003eagile improvement\u003c/em\u003e (S6) and the strategic use of \u003cem\u003esocial media\u003c/em\u003e (S7) deepen these interconnections. Both enhance channel performance, customer relationships and value propositions through regular feedback collection, enabling the retailer to respond to shifting customer expectations with insights into key activities and resource allocation. Meanwhile, S7 further influences value capture by shaping customer perceptions and driving measurable sales effects.\u003c/p\u003e \u003cp\u003eFinally, \u003cem\u003eFinancial Investment for digital experiences\u003c/em\u003e (S8) demonstrates how value capture reverberates back into value creation and delivery. Investments in digital touchpoint enhancement and service integration not only improve cost-revenue alignment but also strengthen the retailer\u0026rsquo;s ability to maintain seamless experiences.\u003c/p\u003e \u003cp\u003eEach success factor contributes to multiple components of the BMC, and the improvements in one often emerge as success in others. This interconnectedness reflects the pattern observed with challenges, but in a reinforcing manner, while challenges demonstrate disruptions cascade across the system, success factors show how coordinated actions create capability development. The patterns shown in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e highlight that the BMC functions as a systemic, interdependent model, and that effective omnichannel transition demands continuous alignment and iterative refinement across all dimensions of value creation, delivery, and capture. In line with Baldivia and Chowdhury (2025), these findings reinforce that seamless omnichannel success depends not on technology alone but on the coordinated alignment of resources, processes, partnerships, and customer‑centric strategies across the business model.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec17\" class=\"Section2\"\u003e \u003ch2\u003e5.3 Implications for SMEs for seamless retailing\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eFor SMEs, transitioning toward seamless retailing presents significant challenges due to limited financial resources, constrained scalability, and the need for specialized digital expertise. Although advanced technologies such as AI, automation, and data analytics can greatly enhance customer experience, their adoption often requires substantial investment costs that many SMEs cannot absorb. Recent research by Oruganti (\u003cspan citationid=\"CR66\" class=\"CitationRef\"\u003e2025\u003c/span\u003e) showed that building resilient digital ecosystem requires aligning processes and partnership and top-down strategic intent, in a similar note, the findings of this study indicate that SMEs can pursue effective omnichannel strategies without relying heavily on expensive technologies by redesigning their business models to deliver customer value through more manageable, process‑driven and organizational adjustments.\u003c/p\u003e \u003cp\u003eThe study reinforce that financial limitations remain a persistent and well‑documented obstacle for SMEs. This was reflected in the identification of only a single challenge within the value capture dimension, emphasizing that financing constraints are structural and largely outside SMEs\u0026rsquo; immediate control. Most challenges instead emerged within the value creation and value delivery dimensions, as did the majority of success factors. This pattern suggests that, despite financial constraints, SMEs can meaningfully advance their seamless retail initiatives by concentrating on modifications within these two dimensions. For example, improving internal processes, strengthening partner collaboration, reconfiguring channels, and enhancing customer experience capabilities.\u003c/p\u003e \u003cp\u003eThe mapping of challenges and success factors across BMC components illustrates the deeply interconnected nature of SME business models. Adjustments made in one part of the business model often produced positive effects elsewhere, underscoring the importance of adopting a holistic perspective rather than isolated, technology‑centric interventions. Moreover, these interdependencies highlight that business model adaptation in seamless retailing is not a one‑time initiative but a continuous and iterative process. SMEs must regularly reassess and realign their activities to maintain coherence between organizational goals, operational processes, and evolving market conditions.\u003c/p\u003e \u003cp\u003eOverall, the findings suggest that SMEs can pursue seamless retailing effectively\u0026mdash;not by matching the technological intensity of larger firms, but by strategically leveraging their inherent strength in flexibility, customer proximity, and capacity for targeted process innovation within value creation and delivery mechanisms. Three key implications that emerge from this study are seamless customer experience as a central element, organizational agility and adaptation, and holistic business model thinking. Delivering seamless customer experience needs integrated front and back-end processes to ensure coherence across channels and consistent brand engagement. This requires structural flexibility, employee upskilling, and incentive alignment to reduce channel conflict and support operational integration. Organizational agility and adaptation are critical for managing cross-functional changes inherent in omnichannel implementation, enabling SMEs to respond quickly to evolving consumer expectations and technological developments. Finally, using the BMC as a dynamic system can help SMEs to effectively align resources, processes, and partnerships with evolving consumer needs, facilitating a comprehensive approach to omnichannel retailing.\u003c/p\u003e \u003cp\u003eFinally, the study shows that seamless omnichannel success requires integrated strategies that combine selective technology adoption with organizational and process redesign aligned to the broader business model. For retailers such as HC, value creation extends beyond product sales to include cultural storytelling, heritage, and personalized service, addressing functional, social, and emotional customer needs. Thus, customer segmentation for these retailers should move beyond demographics to incorporate motivations and usage contexts, such as gift-givers or design-oriented consumers.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e"},{"header":"6. Conclusion, limitations and future research","content":"\u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eThis study explored the challenges and success factors associated with digital technology\u0026ndash;enabled seamless retail and mapped them to the BMC framework. The findings indicate that effective seamless retail implementation requires not only technological advancement but also the coordinated alignment of people, processes, partnerships, and resources across the business model. Challenges such as inefficient logistics, difficulties in replicating in-store experiences online, resource prioritization constraints, and channel and inventory integration reveal the structural and operational complexities faced by SMEs. At the same time, success factors including enhanced customer experience, partner collaboration, strong local heritage, continuous improvement, and targeted technology investments highlight the multidimensional and systemic nature of seamless retail implementation. A key insight from the case study is that customer experience functions as an integrating mechanism spanning multiple BMC components, making organizational agility and structural alignment essential to delivering coherent experiences across channels. These findings underscore the importance of adopting a systemic and holistic approach to business model design. Rather than addressing challenges in isolation, SMEs can benefit from aligning and reconfiguring the interdependent components of their business model to enable seamless and consistent customer experiences, even under resource constraints and competitive market pressures.\u003c/p\u003e \u003cp\u003eThe analysis further reveals meaningful patterns of interdependence across the three core BMC dimensions: value creation, value delivery, and value capture. Within the value creation dimension, challenges were highly interconnected, directly or indirectly influencing nearly all nine BMC components. Success factors in this dimension demonstrated similar systemic effects, influencing multiple elements across value delivery and value capture, suggesting that improvements in value creation activities can trigger broader, system-wide enhancements in seamless retail businesses. In the value delivery dimension, challenges affected several components, while success factors primarily influenced value creation and value capture indirectly through their effects on channels and customer relationships, reinforcing the central role of customer experience in enabling seamless retail integration. In the value capture dimension, the primary challenge constrained value creation by limiting technology investments and resource allocation, whereas financial investments in digital capabilities acted as a critical success factor by enabling capability development and strengthening value creation and value delivery mechanisms. Collectively, these findings demonstrate that the BMC dimensions are deeply interconnected, with changes in one dimension influencing the structure and functioning of others, highlighting the systemic nature of digital technology\u0026ndash;enabled seamless retail business models.\u003c/p\u003e \u003cp\u003eThis study contributes to the literature on digital technology\u0026ndash;enabled seamless retail and business models by illustrating the Business Model Canvas as a systemic analytical framework for understanding how SMEs pursue seamless retail experiences under resource constraints. Specifically, the findings demonstrate that seamless retail emerges not from isolated technological adoption, but from the dynamic alignment and mutual interdependence of value creation, value delivery, and value capture mechanisms. By showing how challenges and success factors propagate across interconnected business model components, this study advances business model research by highlighting the BMC\u0026rsquo;s role in explaining systemic adaptation and coordination in digitally enabled retail environments. Furthermore, the study illustrates how the BMC can serve not only as a descriptive tool but also as a strategic framework to guide SMEs in aligning their organizational structures, processes, and partnerships to support seamless retail experiences.\u003c/p\u003e \u003cp\u003eThis study is not without limitations. First, the findings are based on a single case study, which provides rich contextual insights but limits generalizability across industries, firm sizes, and geographic contexts. Second, the reliance on qualitative data, including interviews and secondary sources, reflects the specific organizational context and perspectives of the focal SME. While the analysis identified both direct and indirect interdependencies across BMC components, additional relationships may exist beyond those captured in this study. Despite these limitations, the study underscores that digital technology\u0026ndash;enabled seamless retail requires systemic alignment across value creation, delivery, and capture mechanisms. Enabling seamless retail experiences depends on more than technology adoption; it requires the strategic coordination of resources, organizational processes, partnerships, and customer‑centric capabilities. SMEs that adopt a systemic business model perspective may be better positioned to navigate resource constraints and deliver consistent and seamless customer experiences in increasingly complex and digitally shaped retail environments.\u003c/p\u003e \u003cp\u003eFuture research could extend these findings through comparative multi‑case studies across sectors and regions, as well as longitudinal studies examining how business model components evolve over time in seamless retail settings. Additional research on emerging digital technologies\u0026mdash;such as AI‑driven personalization, virtual and augmented reality, and advanced analytics\u0026mdash;examined through theoretical perspectives such as dynamic capabilities or resource orchestration, could deepen understanding of how SMEs build and sustain digital technology\u0026ndash;enabled seamless retail business models.\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e"},{"header":"Declarations","content":"\u003ch2\u003eEthical Approval and consent to participate\u003c/h2\u003e\n\u003cp\u003e\u003cem\u003eThis study did not involve any sensitive personal data, or procedures that might cause harm or discomfort to participants. Consequently, ethical approval was not sought, as the nature of the study did not necessitate it.\u003c/em\u003e\u003c/p\u003e\n\u003ch2\u003eConsent of publication\u003c/h2\u003e\n\u003cp\u003e\u003cem\u003eAll authors approve submission and publication.\u003c/em\u003e\u003c/p\u003e\n\u003ch2\u003eFunding\u003c/h2\u003e\n\u003cp\u003eThis research received partial funding from the European Union\u0026rsquo;s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie grant agreement No. 765395.\u003c/p\u003e\n\u003ch2\u003eAuthor Contribution\u003c/h2\u003e\n\u003cp\u003e*A.L. wrote the original manuscript draft, J.J. prepared the final figures, all authors reviewed the manuscript.*\u003c/p\u003e\n\u003ch2\u003eData Availability\u003c/h2\u003e\n\u003cp\u003e*The data supporting the findings of this study are available from the corresponding author upon reasonable request.*\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\u003cli\u003e\u003cspan\u003eAbdallah Y O, Shehab E, Al\u0026ndash;Ashaab A (2022) Developing a digital transformation process in the manufacturing sector: Egyptian case study. 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J Manag. 37(4):1019\u0026ndash;1042.\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"
[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Digitalization, Seamless retail, Business Model, Business model Canvas, case study","lastPublishedDoi":"10.21203/rs.3.rs-9299296/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-9299296/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThe growing demand for seamless customer experiences across physical and digital touchpoints has driven organizations to adopt omnichannel approach. However, small and medium-sized enterprises (SMEs) face significant challenges in this transition due to limited technological, organizational, and financial resources. This study investigates these challenges and associated success factors through an in‑depth qualitative case study of an SME, using the Business Model Canvas (BMC) as the analytical framework. By mapping challenges and success factors across the nine BMC components, the study illustrates and extends their dynamic interconnectedness. Key challenges include supplier digital readiness, logistics integration, inventory synchronization, evolving customer expectations, and resource constraints. The findings show that achieving seamless retailing requires not only technological enhancements but also organizational agility, cross‑functional coordination, and partner collaboration. Success factors such as enhanced customer experience, supplier capability development, process alignment, and continuous improvement span multiple BMC components, demonstrating the systemic nature of the seamless omnichannel transition and BMC itself. Further, the study advances the digital technology\u0026ndash;enabled seamless retail and business model literature by demonstrating the systemic and interdependent nature of the BMC and its role as an analytical and strategic framework for SMEs managing complex transitions towards seamless retailing under resource constraints.\u003c/p\u003e","manuscriptTitle":"Managing Digital Technology–Enabled Seamless Retail: A Business Model Perspective","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2026-04-28 00:22:35","doi":"10.21203/rs.3.rs-9299296/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"
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