Document Type : Research Paper
Authors
1 Ph.D. Student in Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran
2 Associate Professor of Business Management, Rasht Branch, Islamic Azad University, Rasht, IranCorresponding Author: k_shahroodi@yahoo.com
3 Assistant Professor of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran
Abstract
Today, virtual businesses need to innovate in order to have a better market performance. But the ability of companies to acquire innovation is one of the serious challenges of online stores; Based on this, the present research has been done with the aim of designing a model for innovation on the market performance of online shopping websites with the approach of narrative analysis. This study has a qualitative approach. The statistical population included all narratives related to the dimensions of innovation and market performance of prominent online shopping websites in the country. With the help of judgmental sampling method, 69 narratives were examined. Narratives have been analyzed by searching websites and blogs and using the three-step open, central and selective coding method in the form of a topic network. The results indicated 7 organizing themes and 161 basic themes. The identified dimensions include the business model innovation dimension (the sub-dimension of business model type and revenue flow), the organizational innovation dimension (the structure innovation sub-dimension, strategic innovation and innovation culture), the marketing innovation dimension (the product innovation sub-dimension, price innovation, distribution innovation , promotion innovation, advertising innovation, customer segmentation innovation, value proposition innovation and customer relationship innovation), process innovation dimension (technology innovation sub-dimension and safety innovation), credibility innovation dimension (trust innovation sub-dimension and expertise innovation) and market performance dimension ( sub-dimensions of financial performance and non-financial performance) which were included under the overarching themes of innovation and performance of prominent online shopping websites in the country.
Introduction
Market performance is a critical factor for any organization as companies that perform well can generate value over time. In light of the current coronavirus crisis, it is particularly important for online shopping websites to operate efficiently and compete with each other. For these businesses to thrive, they must continuously innovate and adopt new technologies. However, the significant challenge faced by marketers is not merely understanding the constituents of innovation. While previous studies have proposed different models in this area, fewer studies have presented a comprehensive framework that analyzes how various aspects of innovation impact the market performance of online shopping websites. Thus, to address this research gap, the current study introduces a novel framework that views innovation from a fresh perspective. The present study aims to develop a model that examines the effects of innovation on the market performance of online shopping websites, using a narrative analysis approach. Accordingly, the research question that needs to be answered is: what are the different dimensions of innovation in online shopping websites?
Literature Review
2.1. Innovation and market performance of internet businesses
Although research has been conducted on the relationship between innovation and market performance in various industries, there have been relatively few studies specifically focused on the electronic business sector. For instance, Saifullahi and Hamidzadeh Arbabi (2021) conducted internal research at Tejarat Bank, Fallah et al. (2021) examined companies in the petrochemical industry, Malek Mahmoudi et al. (2021) investigated sports clubs, and Hosseinpour et al. (2020) studied food industry exporters, while Dehghani Soltani et al. (2019) explored the hotel industry. All of these studies were conducted on both public and private sector enterprises. In addition, there are foreign studies that have examined the relationship between innovation and market performance in different industries. For instance, Fatonah, S (2022) researched small and medium-sized companies, Lartey et al. (2020) studied telecommunication companies, and Efrata et al. (2020) investigated the clothing industry, while Thi Canh et al. (2019) explored manufacturing companies. However, these studies did not specifically focus on stores or electronic businesses.
2.2. Literature review
Fatonah’s (2022) research revealed a positive correlation between market orientation, product innovation, and competitive advantage. Similarly, Muharam, Andria & Tosida (2020) found that disruptive technology moderates the connection between process innovation and financial performance. However, it was observed that this technology does not have a moderating impact on the relationship between market innovation and financial performance. Moulai, Yazdani, and Kazemi (2022) found that organizational innovation positively impacts export performance and is also related to both radical technological innovation and technological innovation. Ultimately, both types of technological innovation were seen to have a positive impact on export performance. According to Hosseinpour et al. (2019), strategic innovation has a significant impact on the performance of small and medium-sized businesses. In highly competitive environments, where there is only a slight difference in market conditions, strategic innovation has a greater influence on innovative performance, indicating that the stronger the competition, the more significant the impact of strategic innovation on innovative performance.
Considering the theoretical foundations and literature review, it can be concluded that while previous studies have identified different dimensions of innovation, only a few have presented a framework that includes other significant aspects such as business model and credibility. Thus, there is a need to develop a comprehensive framework that encompasses all aspects of innovation.
Methodology
This study employed a qualitative approach with a practical objective and utilized narrative analysis as the research strategy. The target population comprised all narratives related to the dimensions of innovation and market performance of popular online shopping websites in the country, including Digikala, Mediseh, Zanbil, Digistyle, MoTenRo, Khanomi, Baneh.com, Okala, Mobit, Faradars, Dindengar, Uzdellamart, Shipour, Divar, Tasufan, Torob, Filimo, Pol Ticket, totaling 83 narratives. The sample size was determined using judgmental sampling logic. To achieve this goal, all stories published on the websites were examined to ensure that they had specific authors and editing dates. These websites were then categorized accordingly. Afterward, each website was evaluated based on several criteria such as the presence of a communication channel, accessibility to managers and audiences, author and date of text insertion, number of visits, and an electronic trust symbol. Sites that did not meet these criteria were excluded from the study, leaving only 69 narratives for analysis. The data for this study was collected from textual and written stories found on online shopping websites. These texts were analyzed using narrative analysis with the aid of theme analysis. The analysis involved manually coding the narratives using the three-step open, central, and selective coding method, which then formed a network of themes.
Results
Using a comprehensive approach, this study developed a model by analyzing narratives gathered from credible domestic websites and applying the open, central, and selective three-stage coding method. In response to the research question, seven organizing themes and 161 basic themes were identified. The identified dimensions of innovation and performance include business model innovation (with sub-dimensions of business model type and revenue flow), organizational innovation (with sub-dimensions of structure innovation, strategic innovation, and innovation culture), marketing innovation (with sub-dimensions of product innovation, price innovation, distribution innovation, promotion innovation, advertising innovation, customer segmentation innovation, value proposition innovation, and customer relationship innovation), process innovation (with sub-dimensions of technology innovation and safety innovation), credit innovation (with sub-dimensions of trust innovation and expertise innovation), and market performance (with sub-dimensions of financial performance and non-financial performance). These were categorized under the comprehensive themes of innovation and performance of popular online shopping websites in the country and presented in a theme network.
Discussion
According to the findings, business model innovation - specifically the type of business model and income flow sub-dimensions - can impact the market's performance (both financial and non-financial). These results align with previous research in this area. Additionally, organizational innovation was found to have an effect on performance similar to previous studies, but only when considering sub-dimensions such as structure innovation, strategic innovation, and innovation culture. Thus, the identification of various sub-dimensions can be viewed as a novel aspect of this study. The marketing innovation dimension, which includes product innovation, price innovation, distribution innovation, promotion innovation, advertising innovation, customer segmentation innovation, value proposition innovation, and customer relationship innovation sub-dimensions, aligns with prior research results. Meanwhile, process innovation was found to impact performance in a similar way to previous studies, but only when considering sub-dimensions such as technological innovation and safety innovation among other dimensions identified in this study that affect the performance of online shopping websites. Thus, the novelty of this study is emphasized from this perspective. Ultimately, it was found that the credit innovation dimension, which includes sub-dimensions such as trust innovation and expertise innovation, is one of the other dimensions identified in this study that impact the performance of online shopping websites. As previous research has not focused much on this dimension of innovation, it can be concluded that this study's innovation lies in this aspect.
Conclusion
Overall, the findings indicate that online shopping websites looking to enhance their performance can do so by implementing various dimensions of innovation. These include business model innovation, organizational innovation, marketing innovation, process innovation, and credit innovation.
Acknowledgments
We would like to express our gratitude to the professors, experts, and online shopping website managers who assisted us with data collection.
Keywords: Market Performance, Innovation, Website, Online Shopping, Online Stores.
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