TITLE: The Influence of Technology Integration on Inventory Management of

Selected Merchandise Stores in District 2, Quezon City

Theoretical Framework

Figure 1. Technological Acceptance Model

Perceived
Usefulness

Intention to Use Actual Use

Perceived
Ease of Use

The above figure shows the theoretical framework of the study, which is
grounded in the Technology Acceptance Model 2 (TAM) that was initially proposed by
Fred D. Davis in the 1980s. The Technology Acceptance Model (TAM) serves as a
valuable tool for comprehending and forecasting individuals' willingness to adopt new
technologies or information systems. It aids in dissecting the factors that shape users'
attitudes and intentions towards technology usage. TAM's focus on variables like
perceived usefulness and perceived ease of use offers insights into the fundamental
drivers of technology adoption behavior. This model is instrumental in informing the
design, implementation, and evaluation of technology-based initiatives across diverse
sectors such as businesses, education, and healthcare.

The TAM model allows researchers to explore the interconnections among these
factors and the challenges encountered by merchandise store owners in integrating
technology into their inventory management practices. By evaluating aspects such as
the perceived benefits of technology integration, and perceived ease of use the
framework facilitates the identification of strategic approaches to address barriers to
technology adoption and enhance inventory management efficiency in the merchandise
sector.

In addition, this study is anchored with Diffusion of Innovations Theory by E.M.

Rogers a communication theorist at the University of New Mexico, in 1962. It discusses
why and how people start using new ideas and methods. It also looks into why it
sometimes takes a long time for new ideas to catch on and become popular. This theory
proposes that there are five (5) attributes of an innovation that affects adoption: (1)
relative advantage, (2) compatibility, (3) complexity, (4) trialability, and (5) observability.

Additionally, this research is based on Inventory Theory by Jaime Zappone. It

looks at how companies should handle their inventories by planning ahead for things
like keeping enough goods in stock for future sales or needs. Managing inventory well
can help businesses grow and adjust in today's fast-paced global market. This theory
emphasizes 6 components that determine profitability such as (1) the cost of ordering or
manufacturing product, (2) holding cost, (3) shortage costs, (4) revenues, (5) salvage
cost, (6) Discount rates.

This theory can assist researchers by providing a structured framework for

understanding and analyzing inventory management practices. By studying Inventory
Theory, researchers can gain insights into effective strategies for handling inventory,
such as determining optimal stock levels, implementing efficient ordering policies, and
minimizing inventory costs. Additionally, the theory offers guidance on forecasting
demand, managing lead times, and optimizing inventory control systems. Overall, by
applying this theory, researchers can develop practical recommendations and solutions
to improve inventory management practices in various industries and settings.
Statement of the Problem
This study aims to investigate the influence of technology integration on inventory
management within selected convenience stores in Fairview, Quezon City. By
examining the current practices and assessing the impact of technology adoption on
inventory control, this research seeks to identify areas for improvement and formulate
recommendations that can enhance operational efficiency. Generally, this study will
focus on answering the following questions:

1. What is the Demographic Profile of the business, and respondents in terms of:

1.1. Age;

1.2. Sex;

1.3. Type of business; and

1.4. Job Position

2. How does the respondents monitor their inventory in terms of:

2.1. Cost of purchase;

2.2. Holding cost;

2.3. Shortage cost; and

2.4. Revenues;

3. What is the level of perceived usefulness and perceived ease of use among
merchandise store staff regarding the adoption of technology for inventory management
practices?

4. Is there a significant difference between the level of perceive usefulness, and ease of
use and monitoring inventory in terms of:
 4.1. Cost of Purchase;

4.2. Holding Cost;

4.3. Shortage cost; and

4.4 Revenues

5. Based on the findings, what enhancements can be suggested for optimizing inventory
management practices within merchandise stores to minimize costs and maximize
profitability?