The Impact of E-Commerce Firms’ Capabilities on Value Offering in the Online Shopping Environment

Abstract

The retail environment has experienced massive changes due to the prevalence of e-commerce and online shopping platforms. In order to improve the overall level of customer service, organizations are customizing their processes and IT function, including innovation, marketing, collaboration, and absorptive capabilities. In this study, we assess the relationship among a firm’s capabilities and its value offerings for customers in the online retail setting. Our findings reveal that such capabilities can strongly enhance the creation of value for customers of e-commerce firms. Therefore, firms are encouraged to maintain and improve these vital capabilities in the online shopping environment.