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How do small-to-medium-sized e-commerce businesses stay competitive? Evidence on the critical roles of IT capability, innovation and multihoming

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Publicado en:Internet Research vol. 35, no. 1 (2025), p. 126-151
Autor principal: Weng, Qin
Otros Autores: Wang, Danping, Lurgio, Stephen De, II, Schuetz, Sebastian
Publicado:
Emerald Group Publishing Limited
Materias:
United States > US
Innovations
Competitive advantage
Business models
Information technology
Electronic commerce
COVID-19
Internet
Technological change
Structural equation modeling
Value
Trade
Chinese languages
Owners
Vendors
Pandemics
Financial performance
Structural Equation Models
Least Squares Statistics
Stakeholders
Influence of Technology
Consumer Economics
Researchers
Innovation
Acceso en línea:Citation/Abstract
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Resumen:PurposeSmall-to-medium-sized enterprises (SMEs) in e-commerce often invest in information technology (IT) to stay competitive. However, whether and how IT capability (ITC) translates into financial performance requires further research. This paper examines the role of ITC in enabling value proposition innovation (VPI) as an important mechanism that improves financial performance for Chinese e-commerce SMEs during the COVID-19 pandemic. We argue that ITC is critical for enabling innovation because it elevates SMEs’ understanding of changing customer needs, especially when SMEs operate on multiple e-commerce platforms (multihome).Design/methodology/approachWe used partial least squares structural equation modeling (PLS-SEM) and tested the hypotheses that ITC mediated by VPI and moderated by multihoming increases the financial performance of e-commerce SMEs through a survey among 206 Chinese SMEs operating on Taobao.FindingsWe find that not only higher levels of ITC lead to better financial performance, but also that the effect is fully mediated by VPI. Moreover, the effect of ITC on innovation is enhanced when vendors operate on multiple platforms.Originality/valueThe study identifies VPI as an important mechanism through which SMEs can leverage their ITC to adapt, innovate and thrive in competition. Our work suggests that using technology to develop innovative ideas and identify opportunities (which are reflected in VPI) is key to success and that doing so is more likely when vendors multihome. Thus, this study contributes to the innovation literature by explicating a concrete link between ITC, multihoming, VPI and increased financial performance. Different e-commerce stakeholders, including SME owners, IT and service providers and e-commerce platforms, can benefit from the findings of this work.
ISSN:1066-2243
2054-5657
1051-4805
DOI:10.1108/INTR-01-2023-0061
Fuente:ABI/INFORM Global