Mohammad A S Alkhanaini

Type of the article: Research Article

Abstract
Profitability is a key indicator of marketing performance and is essential for the success of small and medium-sized enterprises (SMEs), particularly in the food and beverage sector. With the growing adoption of mobile applications like Talabat, understanding how these platforms affect profitability is critical. This study explores the impact of technological, organizational, and environmental factors on profitability through Talabat adoption in Kuwaiti SMEs. A survey of 330 SME owners and managers, primarily from restaurants, cafes, and catering services, was conducted. The analysis showed that relative advantage (β = 0.186, t = 2.386, p = 0.017), top management support (β = 0.272, t = 3.272, p = 0.001), competitive pressure (β = 0.224, t= 3.533, p < 0.001), mobile payment gateways (β = 0.195, t = 2.915, p = 0.004), and information intensity (β = 0.298, t = 4.873, p < 0.001) all had significant positive effects on Talabat adoption. In contrast, compatibility (β = 0.043, t = 0.662, p = 0.508) and complexity (β = -0.029, t = 0.850, p = 0.395) showed no significant effects. Furthermore, Talabat adoption had a strong positive impact on profitability (β = 0.516, t = 7.208, p < 0.001), demonstrating its significant role in enhancing profitability. Moreover, the mediation analysis revealed that Talabat adoption mediated the relationships between relative advantage, top management support, competitive pressure, mobile payment gateways, and profitability. The findings provide valuable insights for SME managers and policymakers.