Human resource technology in retail delivers value only when it strengthens frontline employees’ ability to enhance customer experience, rather than when firms rely solely on advanced digital systems, according to a new academic study.
The research, conducted by scholars from the Goa Institute of Management, Indian Institute of Management Ranchi and the University of Missouri–Kansas City, has been published in the International Journal of Sociology and Social Policy.
The study examines how retailers’ strategic choices, shaped by their social and technological contexts, determine their human resource strategies and, in turn, their technology adoption decisions. It comes at a time when Indian retail leaders face mounting pressure from competitors and consultants to digitise human resources and workforce management systems.
The researchers found that simply replicating technologies deployed by large global retailers often proves ineffective in diverse retail environments.
Anamika Sinha, Professor of Organisational Behaviour and Human Resource Management at the Goa Institute of Management, stated that in retail settings, technology in itself does not generate value; rather, frontline employees do. She said the critical consideration for retailers was not the availability of technology, but whether it enabled stores to improve profitability per square foot with their existing workforce and within their specific location constraints.
She further observed that socio-technical thinking enables leaders to make disciplined strategic choices and avoid costly missteps.
The study concludes that the right technological support, when aligned with frontline staff capabilities, can enhance sales performance, increase basket size and strengthen customer engagement. It also improves the utilisation of store resources in achieving operational objectives.
However, the researchers emphasise that retail formats vary significantly in terms of location strategy, customer footfall, price sensitivity and labour intensity. As a result, frontline employees require differing levels of autonomy, and technology may need to assist, substitute or, in some cases, remain unobtrusive.
Professor Sinha noted that many retail technology investments fail to account for these contextual differences, leading to higher expenditure without commensurate performance gains.
According to the findings, key drivers of productivity improvements include digital literacy among frontline employees, robust inventory systems and training frameworks that develop assisted selling capabilities. Operational variables such as store layout, recruitment practices, supervisory behaviour and peer-driven learning cultures also influence whether technology enhances performance or creates operational friction.
Professor Sinha added that data-driven recommendations tend to perform more effectively in premium retail environments. In high-frequency hypermarkets, she stated, staff who guide customers efficiently through crowded aisles can save time, increase basket size and foster customer loyalty.
The research indicates that technology deployed without consideration of social and operational context often adds complexity rather than performance benefits. The most significant gains were observed where technology augmented employee judgement, enabling staff to function as informed sellers rather than merely processing transactions.
Professor Sinha stated that the research shifts the focus from technology adoption to value creation, redefining human resource technology in retail as an operational enabler rather than an inherent strategic advantage. The findings challenge the notion of universal best practices in retail digitisation and caution against indiscriminate technology deployment.
