The study blends important theoretical and empirical concepts related to the theory of internationalisation, industrial organisation economics, resource-based view, and transaction cost economics to explain how e-commerce moderates key internal and external determinants of export marketing strategy and performance.
The theory of internationalisation explains how e-commerce technologies enhance relationships, resources, and coordination among participants in an export venture. First, e-commerce enables exporters to enter and adapt to markets much more quickly and efficiently than firms that use traditional entry modes such as strategic alliances, joint ventures, or direct investments. Second, e-commerce enhances the ability of a firm to transmit, exchange, and learn new knowledge and skills. Third, e-commerce allows relationships to be developed more effectively and efficiently. Lastly, e-commerce creates an environment that allows collaboration among suppliers, manufacturers, intermediaries, and even customers to create value.
The industrial organisation framework, which argues that external market and industry structure determines a firm’s strategy and performance, draws attention to three ways e-commerce disrupts markets. First, e-commerce modifies the relative power of buyers, suppliers, and intermediaries, by lowering search and market information costs. Second, e-commerce facilitates the creation of substitute products by firms. Finally, e-commerce increases competitive rivalry in international markets by forcing adoption and modification of business practices.
The resource-based view considers a firm’s internal organisational resources (assets, capabilities, processes, managerial attributes, information and knowledge) to explain its strategy and performance. Integration of e-commerce into internal organisation resources is vital since it effects changes in a firm’s exporting capabilities, increases efficiency in transaction and delivery processes, improves and enhances information efficiency, and facilitates knowledge development throughout the organisation.
Transaction cost economics shows how economising on transaction costs results in greater transactional value. Transaction cost economics explains how firms can leverage e-commerce to reduce transaction costs associated with adapting to international markets, searching for trading partners / clients, supporting distribution channels, and building value chains.