The Internationalization Process of Fashion ECCs : A qualitative study investigating the use of exploitative and explorative dynamic capabilities when internationalizing a fashion ECC

Abstract: Background The growth of global e-commerce along with technology and information adoption has driven the international expansions of retail firms. Even though e-commerce companies (ECCs) are changing the way businesses operate and generally have fewer physical barriers to new markets, they still face numerous challenges while internationalizing. Dynamic capabilities are found to have an impact on the internationalization process of ECCs, where exploitative and explorative dynamic capabilities will be the focus of this study. This topic is particularly relevant for the fashion industry since the industry has the characteristics of being highly dynamic, global and complex. Therefore, this paper will focus on the internationalization process of ECCs in the fashion industry. Purpose Due to limited research regarding the internationalization process of ECCs, the purpose of this study is to seek a deeper understanding concerning the internationalization process of fashion ECCs. In particular, in what way exploitative and explorative dynamic capabilities affect the internationalization process of fashion ECCs and how they use these capabilities. Method This is a qualitative study with an abductive research approach. Furthermore, the empirical data was collected from semi-structured in-depth interviews with six international fashion ECCs. Conclusion One main conclusion that can be drawn from this study is that all the ECCs use both exploitative and explorative dynamic capabilities in their internationalization, and hence, ambidexterity is achieved. Moreover, language, logistics and payment method are three major factors used in both activities and could be an explanation for how fashion ECCs use their exploitative and explorative dynamic capabilities when internationalizing.