International online retailers face several unique challenges impacting the success of their performance. Due to globalization and the shrinking of limitations related to space, the competition in the international e-retail sector is growing. Raising customer expectations and the dynamism of digital innovations increase the pressure on online retailers on a regular basis. This study identifies the main factors driving export performance of international e-retailers. A theoretical analysis of previous studies related to this topic will help defining the capabilities that are necessary for the achievement of a competitive advantage in a foreign e-retail market. This will serve as the base for an empirical study with managers from e-retail companies operating in an international context in order to evaluate and deepen the results found in theory. A comparative analysis of theory and practice will conclude in managerial recommendations for e-retailers seeking to enter a new market in a discussion of the major results and limitations of the study.
Table of Contents
INTRODUCTION
I. LITERATURE REVIEW: AN E-RETAILER’S CAPABILITIES AS SOURCES OF COMPETITIVE ADVANTAGES INFLUENCING THE COMPANY’S PERFORMANCE IN A FOREIGN MARKET
A. DEFINITION OF AN E-RETAILER’S PERFORMANCE IN A FOREIGN MARKET
B. DEFINITION OF AN INTERNATIONAL E-RETAILER’S CAPABILITIES AS SOURCES OF COMPETITIVE ADVANTAGES
(1) Resources
(2) Competences
C. DEFINITION OF COMPETITIVE ADVANTAGES IN A FOREIGN MARKET FOR AN E-RETAIL BUSINESS
D. PROCESS MODEL: THE LINK BETWEEN AN E-RETAILER’S CAPABILITIES AND ITS COMPETITIVE ADVANTAGES AND PERFORMANCE IN A FOREIGN MARKET
E. PROPOSITIONS: PARTICULAR CAPABILITIES AND THEIR IMPACT ON CERTAIN COMPETITIVE ADVANTAGES EFFECTING AN E-RETAILER’S PERFORMANCE IN A FOREIGN MARKET
II. EMPIRICAL STUDY: CAPABILITIES AND COMPETITIVE ADVANTAGES NECESSARY TO THRIVE IN A FOREIGN E-RETAIL MARKET
A. INTRODUCTION OF THE METHODOLOGY
B. INTRODUCTION OF THE INTERVIEWED COMPANIES
C. ANALYSIS RESULTS OF THE EMPIRICAL STUDY
III. RECOMMENDATIONS FOR E-RETAIL COMPANIES IN THE PROCESS OF INTERNATIONALIZATION RELYING ON THEORETICAL AND EMPIRICAL ANALYSIS
A. RELATING THE PROPOSITIONS TO THE EMPIRICAL ANALYSIS OF THE GLOBAL E-RETAIL MARKET
B. NECESSARY RESOURCES AND HOW TO OPTIMIZE THEM
C. NECESSARY COMPETENCES AND HOW TO OPTIMIZE THEM
AFTERTHOUGHT
REFERENCES
APPENDIX
Research Objectives and Themes
The primary objective of this thesis is to define the critical success factors for international e-retailers by identifying how specific organizational capabilities lead to competitive advantages in foreign markets. The research addresses the question of how an e-retailer's capabilities—conceptualized as resources and competences—impact their ability to achieve a competitive position, thereby driving overall export performance.
- Theoretical framework linking capabilities, competitive advantage, and e-retail performance.
- Identification of three primary competitive advantages: convenience, insidership, and cost.
- Categorization of vital firm capabilities, including resources (knowledge, human, relationship) and competences (operational, marketing, technological, innovation).
- Empirical validation through expert interviews to provide actionable managerial recommendations.
Excerpt from the Book
Agile operational competences
Enhanced operational competences remove space, time and location limitations and can thereby lead to a competitive advantage not only compared to other online retailers, but also to traditional retailers. Operations represent the center of an e-retailer’s business and are positively associated with customer loyalty and the online retailer’s performance (Power et al., 2007). While brick-and-mortar retail has existed for thousands of years, online retail is a very recent phenomenon that poses new operational challenges for retailers (Nasir et al., 2017). The shopping experience is strongly impacted by the operational differences. In an offline shop, the customer receives the product immediately after buying, therefore the retailer must carefully look after its inventory. An online retailer, however, has the opportunity to offer a larger variety of goods as it is less restricted by storage problems. It must focus on the optimization of processing and delivery times, as customer satisfaction is closely related to the delivery and reception of the product (Li et al., 2015). The successful e-fulfillment of orders has a strong influence on the customers’ perception of quality and satisfaction and can simultaneously create an advantage of cost (Lang et al., 2013). An online retailer therefore must build a strong operational infrastructure in order to secure their performance in a foreign market.
E-operations are shaped by the shift of important operational processes from offline to online. These processes include the procurement of goods and services, supply chain management, distribution and order processing (Gregory et al., 2016). If an online retailer successfully achieves this shift and optimizes online operation processes, it can create valuable offerings for the customers, i.e. online ordering, online payment, the participation in an electronic market place and e-fulfillment (Gregory et al., 2016). An e-fulfillment system has to meet the customers' expectations and be time- and cost-efficient (Lang et al., 2013).
Summary of Chapters
INTRODUCTION: The introduction outlines the growth of global e-retail, its challenges regarding space and time limitations, and the necessity for firms to adapt their business models to foreign market environments.
I. LITERATURE REVIEW: AN E-RETAILER’S CAPABILITIES AS SOURCES OF COMPETITIVE ADVANTAGES INFLUENCING THE COMPANY’S PERFORMANCE IN A FOREIGN MARKET: This chapter establishes the theoretical framework, defining export performance and categorizing the necessary resources and competences that drive competitive advantages like convenience, insidership, and cost.
II. EMPIRICAL STUDY: CAPABILITIES AND COMPETITIVE ADVANTAGES NECESSARY TO THRIVE IN A FOREIGN E-RETAIL MARKET: This chapter details the qualitative research methodology, presenting findings from six expert interviews with e-retail managers to test the proposed theoretical model.
III. RECOMMENDATIONS FOR E-RETAIL COMPANIES IN THE PROCESS OF INTERNATIONALIZATION RELYING ON THEORETICAL AND EMPIRICAL ANALYSIS: The final chapter synthesizes theoretical findings and empirical insights to provide practical managerial instructions for acquiring and optimizing resources and competences to achieve international success.
Keywords
Export performance, international e-retail, competitive advantage, capabilities, resources, competences, knowledge, human resources, relationship resources, operational agility, marketing, technological infrastructure, innovativeness, user experience, market entry.
Frequently Asked Questions
What is the core focus of this research?
The work focuses on identifying the critical success factors for international e-retailers and understanding how internal organizational capabilities can be leveraged to achieve a sustainable competitive advantage in foreign markets.
What are the central themes discussed in the thesis?
The central themes are the relationships between firm-specific capabilities (resources and competences), the formation of competitive advantages (convenience, insidership, and cost), and the resulting impact on export performance.
What is the primary research goal?
The primary goal is to answer the research question: "In what way do certain capabilities foster significant competitive advantages and thereby effect an e-retailer’s performance in a foreign market?"
Which scientific methodology is applied?
The study uses a mixed approach: a deep literature review to establish a theoretical framework and a qualitative empirical study consisting of six semi-structured expert interviews with e-retail managers.
What topics are covered in the main section?
The main sections cover the definition of e-retailer performance, the classification of resources (knowledge, human, and relationship) and competences (operational, marketing, technological, and innovation), and the development of a process model for market entry.
What characterizes this study based on its keywords?
The study is characterized by a focus on dynamic capabilities and internationalization, emphasizing that in a fast-moving, technology-driven sector, agility and the ability to adapt to local customer needs are key to competitive success.
How do "agile marketing competences" affect foreign market performance?
Agile marketing allows e-retailers to create target-specific reach and awareness, personalize communication, and localize customer service, which builds trust and helps the company become a market insider.
What role does "innovation by recombination" play?
Instead of reinventing business processes, the study suggests that e-retailers can gain an advantage by combining existing innovation trends or processes from other sectors in new ways, which reduces research and development costs and minimizes failure risks.
- Arbeit zitieren
- Lea Ribbeck (Autor:in), 2018, International e-retail performance and its success factors, München, GRIN Verlag, https://www.grin.com/document/449031
