Communication Capability and Adaptive Performance in Nanostores: A Seven-Country Study of Direct and Mediated Pathways

Abstract

This study investigates how communication capability, perceived AI competitive advantage, and digital store presence shape adaptive performance in nanostores across seven emerging markets (N = 1,412). Using Hayes' PROCESS Model 14 with 10,000-replication bootstrapping, we examine mediating roles and the moderating role of market dynamism. Results show communication capability has a significant direct effect on adaptive performance (b = 0.190, p < .001). However, indirect effects through perceived AI competitive advantage (0.002, 95% CI [−0.002, 0.008]) and digital store presence (0.001, 95% CI [−0.002, 0.005]) are non-significant, as is the serial pathway. Market dynamism does not moderate these relationships. The model explains 5.1% of variance in adaptive performance, with dominance analysis revealing that communication capability accounts for over 60% of this explainable variance—indicating that while communication capability matters directly, the hypothesized technological mediation mechanisms do not operate in this context. Findings highlight communication as a foundational capability, challenging assumptions about AI and digital presence as automatic transmission mechanisms in informal micro-retail.