Effect of digitalisation on performance: evidence from dairy cooperatives of South India

This study examines the effect of digital technology adoption on the performance of dairy cooperatives. It assesses the advantages and effects of digitalisation on intermediary variables, which subsequently influence outcome variables such as financial, operational, and firm-level employee performance. The research employed a quantitative, explanatory design, collecting data using a questionnaire survey. A structured questionnaire was administered to 996 senior officials of dairy cooperative societies of South India. SmartPLS was used for structural equation modelling. An importance-performance matrix analysis (IPMA) of path modelling was conducted to evaluate the effect of exogenous variables. The study’s findings indicate that digitalisation is a crucial factor influencing organisational performance, encompassing financial, operational, and employee performance. Digitalisation directly influences the integration of digital infrastructure, human resources, business processes, marketing and sales, external stakeholders, supply chain and logistics, and strategic decision-making.