The Effect of Value Creation, Value Delivery, and Value Capture on Digital Retail Performance in the Philippine Clothing Industry: Basis for Digital Retail Business Model

Abstract

The Philippine clothing industry is undergoing a rapid shift toward digital transformation; however, small and medium-sized enterprises (SMEs) face challenges in sustaining their competitiveness. This study examines how value creation, value delivery, and value capture shape digital retail performance, addressing gaps in empirical evidence for emerging markets. The study employed a descriptive–correlational design and quantitative analysis, surveying 94 purposively selected SME respondents in Metro Manila. Data were analyzed using multiple regression and mediation–moderation tests. The theoretical framework integrates Service-Dominant Logic, Value Chain Theory, and Transaction Cost Economics to explain the dynamics of digital business models. Findings reveal that value creation, value delivery, and value capture each have significant positive effects on digital retail performance. Mediation analysis highlights the role of customer satisfaction, loyalty, and perceived quality, while moderation analysis confirms the influence of firm size, capitalization, and technological readiness. The results validate a contextualized Digital Retail Business Model tailored to the Philippine clothing sector. The study contributes to business model innovation literature by providing empirical evidence from a developing economy. Practically, it provides SMEs and policymakers with actionable insights for strengthening digital competitiveness, enhancing customer engagement, and promoting inclusive industry growth.