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Entrepreneurial bricolage and online store performance in emerging economies

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A Correction to this article was published on 29 September 2018

This article has been updated

Abstract

Third-party e-commerce platforms (such as eBay and Taobao) provide great opportunities for small or minor sized enterprises (SMEs) to overcome technological challenges to enter e-commerce markets. However, SMEs still encounter other market entry barriers such as resource constraints and institutional challenges. We apply entrepreneurial bricolage theory to the context of online businesses operating on third-party e-commerce platforms in order to shed light on how SMEs could possibly cope with these challenges. We present a novel framework to explore the relationships between different types of entrepreneurial bricolage and online store performance. The research hypotheses were evaluated by survey data collected from a sample of small online stores operating on the largest third-party e-commerce platform in China, Alibaba’s Taobao.com (NYSE: BABA). Results show that input bricolage has a positive effect on efficiency performance and market bricolage has a positive effect on sales performance, and the relationships between input (and market) bricolage and store performances are significantly stronger with higher level of institutional bricolage. Contrary to our expectations, the effects of input bricolage on sales performance and market bricolage on efficiency performance are positive but not significant. The study contributes to the development of entrepreneurial bricolage theory literature by providing a fine-grained analysis of the varying effects of different types of entrepreneurial bricolage on organizational outcomes. The findings of the study also provide guidelines for SMEs to effectively make use of resources at hand through the practice of entrepreneurial bricolage.

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Change history

  • 29 September 2018

    The original version of this paper missed to capture the author, Bang Nguyen, and is now added on this article.

Notes

  1. In this article, the term SMEs refers to small or minor sized enterprises (SMEs), which reflects the nature of emerging large number of small online businesses. We are indebted to one of the reviewers who suggest this approach of conceptualization.

  2. The definitions of the sub-dimensions of entrepreneurial bricolage will be provided in Section 3, in which we present the research hypotheses of the study.

  3. As described earlier, we incorporated six control variables in the research model. The results of our analysis show that 1) store size and number of stores had some significant impacts to efficiency, and 2) store rank, store size, and owner’s education had some significant impacts to sales performance. However, since the control variables are not the foci of the paper, we only discuss the data analysis results for the main research model.

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Acknowledgements

We thank the National Natural Science Foundation of China (71772117; 71472119) for generous financial support. We are grateful to the anonymous reviewers and the EM editors for their detailed and constructive comments on our paper. We would like to thank Ted Baker and Christian Linder for their helpful comments. An earlier version of this paper was accepted for presentation at the Academy of Management’s 2017 Annual Meeting, Atlanta, USA, August 2017.

Funding

This research is supported by the National Natural Science Foundation of China (71772117; 71472119), Innovation Program of Shanghai Municipal Education Commission, the Pujiang Talent Plan of Shanghai (15PJC053), the Program for Professor of Special Appointment (Young Eastern Scholar) at Shanghai Institutions of Higher Learning (QD2016015).

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Author notes

  1. Xiaoyu Yu, Yajie Li and Daniel Q. Chen contributed equally to this work.

Authors and Affiliations

  1. School of Management, Shanghai University, 99 Shangda Road, Shanghai, 200444, P.R. China

    Xiaoyu Yu, Yajie Li & Xiaotong Meng

  2. Neeley School of Business, Texas Christian University, 2900 Lubbock Fort Worth, Texas, 76109, United States

    Daniel Q. Chen

  3. School of Management, Royal Holloway, University of London, Highfield Road, London, TW20 0EX, United Kingdom

    Xiangming Tao

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  1. Xiaoyu Yu
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  2. Yajie Li
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  4. Xiaotong Meng
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Correspondence to Yajie Li.

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Yu, X., Li, Y., Chen, D.Q. et al. Entrepreneurial bricolage and online store performance in emerging economies. Electron Markets 29, 167–185 (2019). https://doi.org/10.1007/s12525-018-0302-9

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