ABSTRACT
The purpose of the study is to examine the moderation of the Fourth Industrial Revolution/Industry 4.0 (I4.0) in the relationship between Total Quality Management (TQM) and the improvement of operational performance within nanostores (neighborhood stores, markets, pulperías) in Honduras, under the conditions of a developing economy. The owner of each of the 143 nanostores under study completed a survey on I4.0 and TQM, with some operational performance indicators, during the Covid pandemic. As this study was based on the contingency theory, multivariate data analyses were performed, measuring whether I4.0 positively moderates the effect of TQM on operating performance. With I4.0, some nanostores have been channeling their efforts towards higher performance through advancing levels of interconnectivity. Eventually, approaches such as TQM will integrate technologies that, in turn, can harm or enhance operational performance. I4.0 seems to have a positive and significant effect (according to previous studies), but especially, a moderator effect. The authors point out several options for further study in different socioeconomic contexts. This study shows that technological implementation will lead to a better performance in nanostores. The implementation of TQM favors this improvement, supporting nanostores towards I4. 0. © 2022 Latin American and Caribbean Consortium of Engineering Institutions. All rights reserved.