IDEAS home Printed from https://ideas.repec.org/a/spr/rvmgts/v16y2022i1d10.1007_s11846-020-00438-5.html
   My bibliography  Save this article

The digital transformation of a traditional market into an entrepreneurial ecosystem

Author

Listed:
  • Ying Song

    (Chongqing Technology and Business University
    Dongbei University of Finance and Economics)

  • Octavio Escobar

    (Métis Lab)

  • Unai Arzubiaga

    (University of the Basque Country, UPV/EHU)

  • Alfredo De Massis

    (Free University of Bolzano
    Lancaster University Management School
    Zhejiang University)

Abstract

Information and Communication Technologies (ICT) are transforming the business models and entrepreneurial ecosystems of different economic activities. As a result, the survival of some of these activities, especially physical markets, is under threat. This article aims to shed light on the distinct e-commerce mechanisms of wholesale markets that enable transforming and upgrading their ecosystem. The study combines insights from the scholarly debate on ecosystems, wholesale markets, and e-commerce with the empirical findings of a case study (a wholesale fruit market in Chongqing, China). By exploring the mechanisms and outcomes of e-commerce, this article shows that ICT adoption can be a threat as well as an opportunity for wholesale markets. On the one hand, transaction costs and marketing channel power might make physical wholesale markets less attractive for wholesalers and customers. On the other hand, network effects and business model innovation can enhance the traditional wholesale advantages of physical markets, in turn transforming and upgrading this traditional ecosystem into an entrepreneurial one.

Suggested Citation

  • Ying Song & Octavio Escobar & Unai Arzubiaga & Alfredo De Massis, 2022. "The digital transformation of a traditional market into an entrepreneurial ecosystem," Review of Managerial Science, Springer, vol. 16(1), pages 65-88, January.
    • Handle: RePEc:spr:rvmgts:v:16:y:2022:i:1:d:10.1007_s11846-020-00438-5
    DOI: 10.1007/s11846-020-00438-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11846-020-00438-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11846-020-00438-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eric Liguori & Josh Bendickson & Shelby Solomon & William C. McDowell, 2019. "Development of a multi-dimensional measure for assessing entrepreneurial ecosystems," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(1-2), pages 7-21, January.
    2. João J. M. Ferreira & Cristina I. Fernandes & Sascha Kraus, 2019. "Entrepreneurship research: mapping intellectual structures and research trends," Review of Managerial Science, Springer, vol. 13(1), pages 181-205, February.
    3. Baake, Pio & Boom, Anette, 2001. "Vertical product differentiation, network externalities, and compatibility decisions," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 267-284, January.
    4. Zoltan J. Acs & Erik Stam & David B. Audretsch & Allan O’Connor, 2017. "The lineages of the entrepreneurial ecosystem approach," Small Business Economics, Springer, vol. 49(1), pages 1-10, June.
    5. Erik Stam, 2015. "Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1759-1769, September.
    6. Seung Ho Park & Yadong Luo, 2001. "Guanxi and organizational dynamics: organizational networking in Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 455-477, May.
    7. Ben Spigel, 2017. "The Relational Organization of Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 41(1), pages 49-72, January.
    8. Eric Overby & Chris Forman, 2015. "The Effect of Electronic Commerce on Geographic Purchasing Patterns and Price Dispersion," Management Science, INFORMS, vol. 61(2), pages 431-453, February.
    9. Angelo Cavallo & Antonio Ghezzi & Raffaello Balocco, 2019. "Entrepreneurial ecosystem research: present debates and future directions," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1291-1321, December.
    10. Sascha Kraus & Norat Roig-Tierno & Ricarda B. Bouncken, 2019. "Digital innovation and venturing: an introduction into the digitalization of entrepreneurship," Review of Managerial Science, Springer, vol. 13(3), pages 519-528, June.
    11. Hemang Subramanian & Eric Overby, 2017. "Electronic Commerce, Spatial Arbitrage, and Market Efficiency," Information Systems Research, INFORMS, vol. 28(1), pages 97-116, March.
    12. Paul Schneider, 2018. "Managerial challenges of Industry 4.0: an empirically backed research agenda for a nascent field," Review of Managerial Science, Springer, vol. 12(3), pages 803-848, July.
    13. Massimo G. Colombo & Giovanni Battista Dagnino & Erik E. Lehmann & MariPaz Salmador, 2019. "The governance of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 52(2), pages 419-428, February.
    14. Wu, Lei-Yu & Chen, Kuan-Yang & Chen, Po-Yuan & Cheng, Shu-Ling, 2014. "Perceived value, transaction cost, and repurchase-intention in online shopping: A relational exchange perspective," Journal of Business Research, Elsevier, vol. 67(1), pages 2768-2776.
    15. Yannis Bakos, 2001. "The Emerging Landscape for Retail E-Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 69-80, Winter.
    16. Raphael Amit & Christoph Zott, 2001. "Value creation in E‐business," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 493-520, June.
    17. Alvarez, Sharon A. & Young, Susan L. & Woolley, Jennifer L., 2015. "Opportunities and institutions: A co-creation story of the king crab industry," Journal of Business Venturing, Elsevier, vol. 30(1), pages 95-112.
    18. David B. Audretsch & Maksim Belitski, 2017. "Entrepreneurial ecosystems in cities: establishing the framework conditions," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1030-1051, October.
    19. Pan, Kewen & Lai, K.K. & Leung, Stephen C.H. & Xiao, Di, 2010. "Revenue-sharing versus wholesale price mechanisms under different channel power structures," European Journal of Operational Research, Elsevier, vol. 203(2), pages 532-538, June.
    20. Janna Alvedalen & Ron Boschma, 2017. "A critical review of entrepreneurial ecosystems research: towards a future research agenda," European Planning Studies, Taylor & Francis Journals, vol. 25(6), pages 887-903, June.
    21. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
    22. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    23. Alfredo De Massis & Josip Kotlar & Mike Wright & Franz W. Kellermanns, 2018. "Sector-Based Entrepreneurial Capabilities and the Promise of Sector Studies in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 42(1), pages 3-23, January.
    24. Rosenbloom, Bert, 2002. "The ten deadly myths of e-commerce," Business Horizons, Elsevier, vol. 45(2), pages 61-66.
    25. Inga Erina & Vladimir Shatrevich & Elina Gaile-Sarkane, 2017. "Impact of stakeholder groups on development of a regional entrepreneurial ecosystem," European Planning Studies, Taylor & Francis Journals, vol. 25(5), pages 755-771, May.
    26. María Teresa Ballestar & Pilar Grau-Carles & Jorge Sainz, 2019. "Predicting customer quality in e-commerce social networks: a machine learning approach," Review of Managerial Science, Springer, vol. 13(3), pages 589-603, June.
    27. Xiaodong Liu & John Walsh, 2019. "Study on Development Strategies of Fresh Agricultural Products E-commerce in China," International Business Research, Canadian Center of Science and Education, vol. 12(8), pages 61-70, August.
    28. Richard Harrison & Colin Mason & Paul Robson, 2010. "Determinants of long-distance investing by business angels in the UK," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(2), pages 113-137, March.
    29. David B. Audretsch & James A. Cunningham & Donald F. Kuratko & Erik E. Lehmann & Matthias Menter, 2019. "Entrepreneurial ecosystems: economic, technological, and societal impacts," The Journal of Technology Transfer, Springer, vol. 44(2), pages 313-325, April.
    30. Kim, Jongwook & Mahoney, Joseph T., 2006. "How Property Rights Economics Furthers the Resource-Based View: Resources, Transaction Costs and Entrepreneurial Discovery," Working Papers 06-0100, University of Illinois at Urbana-Champaign, College of Business.
    31. Jeroen Content & Niels Bosma & Jacob Jordaan & Mark Sanders, 2020. "Entrepreneurial ecosystems, entrepreneurial activity and economic growth: new evidence from European regions," Regional Studies, Taylor & Francis Journals, vol. 54(8), pages 1007-1019, July.
    32. Yu Wang (Avery. W) & Yi Wang & Soo Hee Lee, 2017. "The Effect of Cross-Border E-Commerce on China’s International Trade: An Empirical Study Based on Transaction Cost Analysis," Sustainability, MDPI, vol. 9(11), pages 1-13, November.
    33. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    34. Zott, Christoph & Amit, Raphael & Donlevy, Jon, 2000. "Strategies for value creation in e-commerce:: best practice in Europe," European Management Journal, Elsevier, vol. 18(5), pages 463-475, October.
    35. Mölk, Andreas & Auer, Manfred, 2018. "Designing brands and managing organizational politics: A qualitative case study of employer brand creation," European Management Journal, Elsevier, vol. 36(4), pages 485-496.
    36. Joep P. Cornelissen, 2017. "Preserving Theoretical Divergence in Management Research: Why the Explanatory Potential of Qualitative Research Should Be Harnessed Rather than Suppressed," Journal of Management Studies, Wiley Blackwell, vol. 54(3), pages 368-383, May.
    37. Philip E. Auerswald & Lokesh Dani, 2017. "The adaptive life cycle of entrepreneurial ecosystems: the biotechnology cluster," Small Business Economics, Springer, vol. 49(1), pages 97-117, June.
    38. Fan, Ying & Ju, Jiandong & Xiao, Mo, 2016. "Reputation premium and reputation management: Evidence from the largest e-commerce platform in China," International Journal of Industrial Organization, Elsevier, vol. 46(C), pages 63-76.
    39. Kolloch, Michael & Dellermann, Dominik, 2018. "Digital innovation in the energy industry: The impact of controversies on the evolution of innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 254-264.
    40. Barrowclough, Michael & Boys, Kathryn A. & Carpio, Carlos, 2019. "Benefits, Challenges and Trade-Offs: Buyer and Contract Characteristics Valued by Small Farm Suppliers to Wholesale Marketing Channels," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 44(3), September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tomyuk, Olga N. & Avdeeva, Olga А., 2022. "Digital transformation of the global media market: in search for new media formats," Economic Consultant, Roman I. Ostapenko, vol. 37(1), pages 16-26.
    2. Zhou, Zhongsheng & Li, Zhuo, 2023. "Corporate digital transformation and trade credit financing," Journal of Business Research, Elsevier, vol. 160(C).
    3. Miguel-Ángel Galindo-Martín & María-Soledad Castaño-Martínez & María-Teresa Méndez-Picazo, 2023. "Digitalization, entrepreneurship and competitiveness: an analysis from 19 European countries," Review of Managerial Science, Springer, vol. 17(5), pages 1809-1826, July.
    4. Zoppelletto, Alessia & Orlandi, Ludovico Bullini & Zardini, Alessandro & Rossignoli, Cecilia & Kraus, Sascha, 2023. "Organizational roles in the context of digital transformation: A micro-level perspective," Journal of Business Research, Elsevier, vol. 157(C).
    5. Miguel-Angel Galindo-Martín & María-Soledad Castaño-Martínez & María-Teresa Méndez-Picazo, 2024. "The relationship between digitalization and entrepreneurship in expansionary and crisis economic phases," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1999-2017, September.
    6. Bejjani, Melissa & Göcke, Lutz & Menter, Matthias, 2023. "Digital entrepreneurial ecosystems: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    7. Freire de Souza, Meiry Altino & Aguilar Madeira, Maria José & Carvalho, Luísa & Filipe Alexandre, Pereira Duarte & Lurdes, Simão, 2024. "Confluence of Factors that Influence Business Model by Digitalisation and Industry 4.0 Technologies," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    8. Ha, Le Thanh, 2024. "A transition to sustainable marine living resources: Why does digital transformation matter?," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    9. Lange, Francie & Tomini, Nino & Brinkmann, Florian & Kanbach, Dominik K. & Kraus, Sascha, 2023. "Demystifying massive and rapid business scaling – An explorative study on driving factors in digital start-ups," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    10. Qianxiao Zhang & Yixue Duan, 2023. "How Digitalization Shapes Export Product Quality: Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-20, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    2. Pankov, Susanne & Schneckenberg, Dirk & Velamuri, Vivek K., 2021. "Advocating sustainability in entrepreneurial ecosystems: Micro-level practices of sharing ventures," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    3. Uwe Cantner & James A. Cunningham & Erik E. Lehmann & Matthias Menter, 2021. "Entrepreneurial ecosystems: a dynamic lifecycle model," Small Business Economics, Springer, vol. 57(1), pages 407-423, June.
    4. Christina Theodoraki & Alexis Catanzaro, 2022. "Widening the borders of entrepreneurial ecosystem through the international lens," The Journal of Technology Transfer, Springer, vol. 47(2), pages 383-406, April.
    5. Daniel Sunghwan Cho & Paul Ryan & Giulio Buciuni, 2022. "Evolutionary entrepreneurial ecosystems: a research pathway," Small Business Economics, Springer, vol. 58(4), pages 1865-1883, April.
    6. Bessagnet, Arnauld & Crespo, Joan & Vicente, Jérôme, 2021. "Unraveling the multi-scalar and evolutionary forces of entrepreneurial ecosystems: A historical event analysis applied to IoT Valley," Technovation, Elsevier, vol. 108(C).
    7. Francesco Perugini, 2023. "Space–time analysis of entrepreneurial ecosystems," The Journal of Technology Transfer, Springer, vol. 48(1), pages 240-291, February.
    8. Bernd Wurth & Erik Stam & Ben Spigel, 2022. "Toward an Entrepreneurial Ecosystem Research Program," Entrepreneurship Theory and Practice, , vol. 46(3), pages 729-778, May.
    9. Stephens, Simon & McLaughlin, Christopher & Ryan, Leah & Catena, Manuel & Bonner, Aisling, 2022. "Entrepreneurial ecosystems: Multiple domains, dimensions and relationships," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    10. Abootorabi, Hooman & Wiklund, Johan & Johnson, Alan R. & Miller, Cameron D., 2021. "A holistic approach to the evolution of an entrepreneurial ecosystem: An exploratory study of academic spin-offs," Journal of Business Venturing, Elsevier, vol. 36(5).
    11. Mariana Pita & Joana Costa & António Carrizo Moreira, 2021. "Entrepreneurial Ecosystems and Entrepreneurial Initiative: Building a Multi-Country Taxonomy," Sustainability, MDPI, vol. 13(7), pages 1-26, April.
    12. Ricarda B. Bouncken & Sascha Kraus, 2022. "Entrepreneurial ecosystems in an interconnected world: emergence, governance and digitalization," Review of Managerial Science, Springer, vol. 16(1), pages 1-14, January.
    13. Ana Joana Fernandes & Joao J. Ferreira, 2022. "Entrepreneurial ecosystems and networks: a literature review and research agenda," Review of Managerial Science, Springer, vol. 16(1), pages 189-247, January.
    14. Angelo Cavallo & Antonio Ghezzi & Raffaello Balocco, 2019. "Entrepreneurial ecosystem research: present debates and future directions," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1291-1321, December.
    15. Ferreira, João J.M. & Fernandes, Cristina I. & Mota Veiga, Pedro, 2023. "The role of entrepreneurial ecosystems in the SME internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    16. Bernhard Fabian Bichler & Andreas Kallmuenzer & Mike Peters & Tanja Petry & Thomas Clauss, 2022. "Regional entrepreneurial ecosystems: how family firm embeddedness triggers ecosystem development," Review of Managerial Science, Springer, vol. 16(1), pages 15-44, January.
    17. David Bruce Audretsch & Maksim Belitski & Georg Maximilian Eichler & Erich Schwarz, 2024. "Entrepreneurial ecosystems, institutional quality, and the unexpected role of the sustainability orientation of entrepreneurs," Small Business Economics, Springer, vol. 62(2), pages 503-522, February.
    18. Chaudhary, Sanjay & Kaur, Puneet & Ferraris, Alberto & Bresciani, Stefano & Dhir, Amandeep, 2024. "Connecting entrepreneurial ecosystem and innovation. Grasping at straws or hitting a home run?," Technovation, Elsevier, vol. 130(C).
    19. Rocha, Augusto & Brown, Ross & Mawson, Suzanne, 2021. "Capturing conversations in entrepreneurial ecosystems," Research Policy, Elsevier, vol. 50(9).
    20. Reis, Germano Glufke & Villar, Eduardo Guedes & Prado Gimenez, Fernando Antonio & Maiolino Molento, Carla Forte & Ferri, Priscila, 2022. "The interplay of entrepreneurial ecosystems and global value chains: Insights from the cultivated meat entrepreneurial ecosystem of Singapore," Technology in Society, Elsevier, vol. 71(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:rvmgts:v:16:y:2022:i:1:d:10.1007_s11846-020-00438-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.