SMEs’ online channel expansion: value creating activities

Abstract

SMEs are faced with new business opportunities through online channels, i.e., electronic commerce and mobile commerce. The model by which they create and capture value is challenged, making the adoption of a business model that fits the organisation a crucial strategic decision. The purpose of this paper is to study value creating activities taken by SMEs when making a transition to an online multichannel context. Sixteen SMEs in Sweden are studied using a qualitative research approach and through the lens of an e-transit business model configuration. The results show that SMEs are required to take various value creating activities denoted as primary and secondary transition activities and that there is a discrepancy between actions taken and their perceived degree of importance. One main conclusion is that the combination of value creating activities an SME should focus on during different stages of an online channel expansion differ depending on the type of transition (e.g., from physical store to electronic commerce or from electronic commerce to mobile commerce) and will change over time.