Identifying and mitigating risks in the digital transformation of cold chain systems: an empirical study on South Korean SMEs

PurposeThis study aims to investigate the impact of digital operational risk (DOR) and digital information risk (DIR) on the operational performance (OP) of South Korean small and medium-sized enterprises (SMEs) engaged in cold chain systems (CCS) in the era of digital transformation. Specifically, it examines the mediating role of conservative market entry strategy (CES) and demand forecasting-based product management (DPM) in these relationships.Design/methodology/approachA structured questionnaire was developed based on prior literature and distributed to SMEs utilizing CCS in South Korea. The collected data were analyzed using partial least squares structural equation modeling.FindingsThe results indicate that DOR positively influences CES, while DIR positively influences DPM. Both CES and DPM have a positive impact on OP. Furthermore, CES mediates the relationship between DOR and OP, while DPM mediates the relationship between DIR and OP. Additionally, DOR indirectly influences OP through CES and DPM.Research limitations/implicationsThis study focuses on SMEs in South Korea, limiting the generalizability of the findings. Future research should expand the scope to other countries and industries. The reliance on survey data may introduce self-report bias, and future studies could incorporate objective performance data.Practical implicationsThe findings provide insights for SMEs to develop tailored risk management strategies based on their specific risk profiles. It emphasizes the importance of strategic investments in information and communication technology to mitigate risks and enhance OP.Social implicationsBy enhancing the risk management capabilities of SMEs in CCS, this study can contribute to the overall efficiency and resilience of the low-temperature supply chain, ensuring the safety and quality of perishable goods for consumers.Originality/valueThis study contributes to the literature by examining the distinct roles of DOR and DIR in influencing strategic choices and OP in the context of digital transformation. It also highlights the mediating role of CES and DPM, providing a more nuanced understanding of risk management in CCS.