The prospects of Internet-Based Channel Orientation for the competitiveness of service companies on the domestic market

Abstract

Drawing upon theories governing micro-institutions and strategic actions on resources, this study proposes a model suitable for assessing the antecedents and consequences of “Internet-Based Channel Orientation” (IBCO) on the operations of domestic companies of moderate or lesser size. Investigation focused primarily on the entrepreneurial capability (ENCAP) of such firms and industrial competition (INDCOM) as predictors of the IBCO of a business. Analysis was conducted as to whether IBCO contributed to heightened market sensing capability (MKTSENSE) and indirectly reinforced competitiveness. To this end, data was sourced from 198 firms based in Nigeria, typically micro-, small- and medium-sized businesses. Statistical analysis indicated that IBCO had a stronger and direct effect on encouraging the fluency of operations at small- and medium-sized enterprises. However, IBCO in combination with a competitive advantage was insufficient to attain competitiveness, the magnitude of such an effect being indirectly anchored to the MKTSENSE of the firm. This study highlights that businesses need to invest in Internet marketing tools and employ them effectively to stay competitive over the long term. © 2020 Elsevier Ltd