The impact of E-commerce capabilities on online retailer performance: Examining the role of timing of adoption

Abstract

This study examines how the timing of the adoption of e-commerce capabilities affects the performance of online retailers. By applying a resource-based view and innovation diffusion theory, we examine capability adoption by the top 500 US online retailers over seven years period. We present how e-commerce capabilities differentially contribute to performance outcomes. Capabilities vary in the durability of benefit, with some providing earlier adopter benefits and others showing benefits later in their life cycles. We find that some capabilities reward later adopters, contrary to prior research. These results support that adoption timing is key to the understanding of the contribution of e-commerce capabilities to online retailer performance.