The adoption of third-party online food delivery services by micro food service businesses: an exploratory study

The purpose of this study was to explore and understand the process and experiences of micro businesses concerning the adoption of third-party online food delivery (TPOFD) services. This study aimed to understand the awareness of these micro businesses and unearth the influencing factors before and during the adoption process. Ultimately, this study intends to inform non-adopters about the micro businesses’ experience of adopting TPOFD services, including the benefits and challenges they experience and the strategies implemented. The study used a multiple case study approach, and ten main participants representing micro businesses that utilised TPOFD services were selected using a purposive sampling method. Data were collected through semistructured interviews and analysed using thematic analysis. The findings revealed three stages of awareness exhibited by the participants before the adoption and multiple factors influencing their decision during the adoption process. Among the influencing factors identified were the environmental characteristics of the business, social capital, technological attributes, and individual aspects of the owners. The participants also discussed the ways in which the adoption has enhanced their competitive advantage, market reach and visibility, revenue growth, and consumer convenience. Simultaneously, they disclosed financial difficulty, operational challenges, and heightened competition as a result of the adoption. To address these challenges, they implemented an improved financial management initiative involving cash flow planning, pricing revisions, and diversification strategies. In addition, they exhibited enhanced communication, adeptly controlled costs, and consistently monitored quality to drive operational improvements. The study contributes to the literature on innovation adoption by providing insights into the unique experiences of micro businesses, a segment often overlooked in research despite its significant economic role. It also highlights practical implications, offering valuable guidance for micro businesses considering TPOFD services and suggesting strategies for overcoming operational and financial challenges during adoption.