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

• Published in: International journal of commerce and management 2022-04, Vol.32 (2), p.267-283
• Main Authors: Cassia, Fabio, Magno, Francesca
• Format: Article
• Language: English
• Subjects: Communications technology; Customer relationship management; Digital technology; Electronic commerce; Exports; Globalization; Hypotheses; International trade; Internet; Market entry; Marketing; Research methodology; Small & medium sized enterprises-SME; Third party
• ISSN: 2059-6014; 2059-6022
• DOI: 10.1108/RIBS-02-2021-0027

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.