The impact of e-commerce on organizational performance: The role of absorptive capacity and integrative capability

Abstract

This study examines how e-commerce creates value for firms from the perspective of dynamic capability theory. A theoretical model is proposed and tested using structural equation modeling techniques based on survey data collected from firms that have been using e-commerce in their operations for an average of 4 years and have more than 25% of sales or procurement via e-commerce channels. We find that top management participation is a key contributor to the development of a firm's potential and realized absorptive capacities. These two forms of absorptive capacity in turn contribute to the firm's integrative capability, theorized as a form of dynamic capability, which then impacts the firm performance indicators. Different contributions of the two absorptive capacities are delineated, so are the effects of top management on the absorptive capacities. Theoretical and practical contributions of these findings are discussed. © 2012 Springer-Verlag Berlin Heidelberg.