An Optimal Strategic Business Model for Small Businesses Using Online Platforms

Hana Kim, Daeho Lee and Min Ho Ryu
Additional contact information
Hana Kim: Technology Management, Economics and Policy Program, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea
Daeho Lee: Department of Interaction Science, Sungkyunkwan University, 25-2 Sungkyunwan-ro, Jongno-gu, Seoul 03063, Korea
Min Ho Ryu: Graduate School of Management of Technology, Hoseo University, Asan 31499, Korea

Sustainability, 2018, vol. 10, issue 3, 1-11

Abstract: As ecommerce continues to grow, small businesses are using a variety of platforms to secure potential consumers. However, it is important for small business owners to choose an efficient business model because of constraints such as technical problems. In this study, based on platform characteristics we divide online shopping platforms into different types as follows: (1) information brokerage services; (2) online malls; and (3) omni-channel platforms. The efficiency of each group is measured by stochastic frontier analysis, and the efficiency comparison between the groups is made using meta-frontier analysis. As a result of the study, it is found that the efficiency of small business owners increases as functional integration increases, satisfying utilitarian motivations. However, a platform with greater integration that has a social presence satisfying hedonic motivations improves the efficiency of all small businesses using the platform instead of just the efficiency of a marginal number of small business owners. This study, based on the dynamic capabilities viewpoint, suggests that the omni-channel platform represents the most sustainable approach for small business owners undergoing difficulties such as technological and organizational changes.

Keywords: strategies for small businesses; online marketplace; technical efficiency; online shopping platforms (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/2071-1050/10/3/579/pdf (application/pdf)
https://www.mdpi.com/2071-1050/10/3/579/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:3:p:579-:d:133311

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().