Examining the complementary roles of market-driven and market-driving orientations in the geographical diversification strategies of e-commerce SMEs

Uyen Vu and Daniel Tolstoy

Journal of Business Research, 2025, vol. 194, issue C

Abstract: This study examines how e-commerce SMEs can succeed with geographical diversification strategies. We argue that market orientation is crucial in this process. By combining the PLS-SEM with a necessary condition analysis, we explore the independent roles that market-driven and market-driving orientations play in deriving benefits from geographical diversity. We find that only market-driving e-commerce companies can leverage geographical diversification strategies for improved international performance. We also find that a market-driven orientation is a necessary condition for the effective deployment of market-driving behaviors across multiple markets. This study shows that explorations of the complementary relationship between the two market-oriented capabilities in the pursuit of geographical diversification strategies can provide a detailed theoretical account of how international e-commerce can be advanced. In practice, e-commerce SMEs need to be mindful of market conditions as they combine firm-specific assets with digital resources in attempts to achieve desired outcomes.

Keywords: Geographical diversification; Market-driven orientation; Market-driving orientation; e-commerce SMEs; Necessary condition analysis; PLS-SEM (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:194:y:2025:i:c:s0148296325001985

DOI: 10.1016/j.jbusres.2025.115375

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