Repositioning Structural Enablers in Informal Retail: The Role of Digital Infrastructure and Perceived AI Benefits in Nanostore Operational Performance (#2443)

Authors

Ortega-Jimenez, Cesar H

Melgar-Martínez, Narciso A

Sabillon Palomeque, Dany N.

Abstract

This research examines determinants of artificial intelligence (AI) adoption and its impact on operational performance in nanostores across seven emerging markets, addressing a critical literature gap focused on formal SMEs in developed economies. By investigating perceptual and contextual drivers in informal, resource-constrained retail, it provides one of the first large-scale quantitative studies in this context. Building on exploratory work in Honduras, this cross-sectional study analyzes data from 1,412 nanostores in Jordan, Israel, Saudi Arabia, UAE, Morocco, Honduras, and Colombia (collected August 2024–November 2025). Partial Least Squares Structural Equation Modeling (PLS-SEM; R² = 0.617) reveals perceived AI benefits (β = 0.394, p < 0.001) and environmental interaction (β = 0.132, p < 0.05) as significant predictors of operational performance, while perceived quality has no direct effect. Digital infrastructure accessibility emerges as a key contextual determinant, with multi-group analysis showing stronger effects in Middle Eastern than in Latin American markets. Results indicate that effective AI integration requires addressing perceptual barriers (benefit demonstration) and structural constraints (infrastructure/ecosystem support). Findings advocate context-sensitive strategies: prioritizing benefit communication and ecosystem linkages in Latin America, alongside targeted infrastructure investments. This multi-regional evidence guides inclusive digital transformation in informal retail.