Policy gaps in digital food innovation: exploring MSE roles, trust challenges and consumer expectations

Abstract

Purpose Digital food shopping has been practiced for a considerable period. Nevertheless, the supporting policies for this activity have not been thoroughly examined. This study seeks to assess the responses of digital consumers as the most directly impacted party toward digital food trading policies, particularly in transactions involving micro and small enterprises (MSEs) in Indonesia. This study also aims to propose potential modification to digital food innovation policies to enhance digital consumer trust. Design/methodology/approach This study used a quantitative approach by surveying 306 Indonesian digital consumers with prior experience in digital food shopping to determine whether or not they feel protected under existing digital technology policies. Structural Equation Modelling was applied, and data were analyzed using Partial Least Squares Structural Equation Modelling. Findings The findings of this study indicate that cultural acceptance of digital technology (CADT) positively influences both consumer appeal and affection (CAA), as well as digital readiness (DR). CADT emerged as a key determinant in the adoption of digital food shopping. However, digital trust (DT) and consumer learning (CL) did not moderate the relationship between CADT and either CAA or DR. Practical implications Consumers, as respondents of this study, expressed a need for a clear, personalized, easy-to-understand, transparent and secure online platform when engaging in digital food shopping. Entrepreneurs should take these expectations into account when designing their digital platforms, as doing so may increase consumers’ intention to choose a particular digital shopping platform. Policy implications are also discussed in this study. Social implications Consumers were found to have a strong intention to adopt digital technology, including digital food shopping. Therefore, policymakers need to evaluate whether their current policies consistently protect consumers’ rights, particularly in relation to secure transaction systems and the overall online buying process. Originality/value This study offers a new approach to evaluating technology innovation policies by examining them from the consumer’s perspective. This study provides valuable insights for the planning and implementation of technology and digital policies.

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