Cross-border e-commerce as a foreign market entry mode among SMEs: the relationship between export capabilities and performance

TLDR

The study focuses on e‑commerce as a foreign market entry mode rather than a supplement to offline exporting activities. The authors investigate how information technology, international marketing, and export operations capabilities influence the strategic and financial performance of small and medium‑sized exporters’ cross‑border e‑commerce, a first of its kind. Partial least squares structural equation modeling was applied to data from Italian food and beverage exporters. Results show mixed effects of the three capabilities on e‑commerce performance, with third‑party platforms dampening the impact of IT capabilities on financial outcomes, and suggest that e‑commerce can accelerate overall export performance if managed strategically. Because most participants had only recently adopted cross‑border e‑commerce, longitudinal data on success factors are unavailable.

Abstract

Purpose Although cross-border e-commerce has become increasingly popular among small and medium-sized enterprises as a foreign market entry mode, research on the determinants of its success is scarce. Drawing on the resource-based view, this study aims to examine the relationship between a firm’s information technology, international marketing and export operations capabilities and its cross-border e-commerce strategic and financial performance. Design/methodology/approach Partial least squares structural equation modeling was used to analyze data from a sample of Italian exporters in the food and beverage industry. Findings The results highlight the mixed effects of information technology, international marketing and export operations capabilities on both e-commerce strategic and financial performance. Moreover, the use of third-party e-commerce platforms reduces the effect of exporters’ information technology capabilities on their e-commerce financial performance. Research limitations/implications The majority of exporters in this study had implemented cross-border e-commerce only recently; hence, longitudinal data on the success factors of e-commerce are not available. Practical implications While cross-border e-commerce may work as an accelerator of the overall export performance, export managers are urged to approach it strategically with a clear medium-term view to develop the required capabilities. Originality/value This study was one of the first to examine the drivers of small and medium-sized exporters’ cross-border e-commerce performance. Moreover, unlike most previous analyzes, it focused on e-commerce as a foreign market entry mode rather than a supplement to offline exporting activities.