<![CDATA[This study investigates the effects of retail store closure intensity, retailers’ digital adoption, and government digital tax policy on online store performance, with human resource and business adaptation strategies as mediating variables. A quantitative research design was employed using a survey method involving 300 online retailers in Indonesia. Data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The results indicate that retail store closure intensity and government digital tax policy have a positive and significant effect on online store performance. In contrast, retailers’ digital adoption has a negative and significant effect on online store performance. Furthermore, retail store closure intensity has a positive and significant effect on adaptation strategies, while digital adoption and digital tax policy do not significantly influence human resource and business adaptation strategies. Mediation analysis reveals that adaptation strategies do not significantly mediate the relationships between the independent variables and online store performance. These findings suggest that external environmental and regulatory factors play a more dominant role in shaping online retail performance than internal organizational adaptation mechanisms. This study contributes to the literature on digital transformation and retail management by highlighting the importance of government policy and market disruption in determining business performance in the digital economy, particularly in the context of developing countries such as Indonesia.]]>
