Internet-Based Channel Orientation for Domesticated Services Firm: Some Drivers and Consequences

Abstract

Undeniably, several studies have reported on both antecedents and the consequents of infusing internet-based channel orientation into the operations of small or micro domesticated firms. However, in the developing and to be precise the African context, such studies are somewhat scant. To address this yearlong theoretical and practical gap, this study takes inspirations from the theoretical underpinnings of both micro-institutional view of the firm as well as resource strategic action. Henceforth, this study supplements the existing internet orientation literature and adds to the on-going debate why internet channel orientation stands as the focal point and engine of survival in small and midsized enterprises. In light of this, this study proposes that entrepreneurial capability of the firm and industry competition predict Internet-based channel orientation (IORIENT) of the firm. Furthermore, the study tests the assumption that the utilisation IORIENT not only potentially contributes to greater market-sensing capability but that it can also indirectly lead to firm competitiveness. Survey data from 198 firms offer initial support for the research propositions. Overall, the research study encourages firms not to only invest in Internet marketing tools but also to effectively use these tools as this is critical to their long-term competitiveness.