An Analytical Study on the Impact of Digitalization on the Economic Sustainability of Street Vendors: The Mediating Role of Digital Literacy

Abstract

Digitalization has become a significant economic sustainability enabler as a key factor to change the traditional ways of conducting business and new opportunities for informal sector businesses. In this case, this study tries to investigate the impact of digitalization on the economic sustainability of street vendors in Tamil Nadu with digital literacy as a mediating variable. The research design used was quantitative research, as well as analytical research, with primary data obtained from street vendors as respondents numbered 430 with the technique of structured questionnaire. To explore direct and indirect relationships between study variables, the collected data was analyzed with Partial Least Squares Structural Equation Modelling (PLS-SEM). The result showed that Digitalization has a significant positive effect on Street vendors economic sustainability and street vendors digital literacy. The results also show that digital literacy has a significant impact on the economic sustainability and that it acts as a moderator in the relationship between digitalization and economic sustainability. It points out that digital vendors who have greater digital literacy will be better able to use digital technology, access markets, increase business productivity and ensure long-term economic sustainability. The results highlight the need to improve the digital skills of street vendors by providing training, policy measures, and digital inclusion initiatives to improve their livelihoods and resilience. The study adds to the literature by presenting empirical evidence, the interconnection between Digitalization, Digital literacy and Economic sustainability and also provides practical implications for the policy makers, financial institutions and the local authorities towards the promotion of sustainable development of street vendors in Tamilnadu.