IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i13p7559-d844306.html

Disruptive Innovation in the Context of Retailing: Digital Trends and the Internationalization of the Yiwu Commodity Market

Author

Listed:
  • Wan Liu

    (School of Management, Zhejiang University, Hangzhou 310058, China)

  • Steven Si

    (School of Management, Zhejiang University, Hangzhou 310058, China
    Zeigler College of Business, Bloomsburg University of Pennsylvania, Bloomsburg, PA 17815, USA)

Abstract

The prevalence of disruptive innovation practices, enabled by the advancement of digital technologies, has greatly changed the way SMEs innovate and the competitive landscape of today’s retail industry. This study seeks to understand how disruptive innovation has been adopted for the purpose of internationalization across retailing SMEs in Yiwu’s Commodity Market. To answer the research questions, the approach used in this study utilized a qualitative research approach in combination with semi-structured interviews. In this way, the chronology of several phases of Yiwu’s Commodity Market’s development into a global market center is presented, based on analysis of the data. The findings of this study provide an insight into how to facilitate disruptive paths to achieve the internationalization of SMEs through dynamism of the market, strategy positioning, and capability construction. This study contributes to literature on disruptive innovation by providing and testing a model of internationalization mechanisms that SMEs can use to coordinate digital disruptive innovation-related activities. The study also provides insights for policymakers and SMEs in the retail industry about the importance of digital technologies for motivating potential entrepreneurs to pursue new ventures.

Suggested Citation

  • Wan Liu & Steven Si, 2022. "Disruptive Innovation in the Context of Retailing: Digital Trends and the Internationalization of the Yiwu Commodity Market," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:13:p:7559-:d:844306
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/13/7559/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/13/7559/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martina Musteen & Deepak K. Datta & Marcus M. Butts, 2014. "Do International Networks and Foreign Market Knowledge Facilitate SME Internationalization? Evidence from the Czech Republic," Entrepreneurship Theory and Practice, , vol. 38(4), pages 749-774, July.
    2. Paloma Escamilla-Fajardo & Juan Manuel Núñez-Pomar & Ana María Gómez-Tafalla, 2020. "Exploring Environmental and Entrepreneurial Antecedents of Social Performance in Spanish Sports Clubs: A Symmetric and Asymmetric Approach," Sustainability, MDPI, vol. 12(10), pages 1-17, May.
    3. Xiaoli Li & Hongqi Wang, 2021. "An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle," Sustainability, MDPI, vol. 13(9), pages 1-25, April.
    4. Zhang, Feng & Zhu, Lei, 2021. "Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: The moderating roles of TMT heterogeneity and environmental dynamism," Journal of Business Research, Elsevier, vol. 133(C), pages 183-193.
    5. Edeh, Jude Ndubuisi & Obodoechi, Divine Ndubuisi & Ramos-Hidalgo, Encarnación, 2020. "Effects of innovation strategies on export performance: New empirical evidence from developing market firms," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    6. Fei Peng & Lili Kang & Taoxiong Liu & Jia Cheng & Luxiao Ren, 2020. "Trade Agreements and Global Value Chains: New Evidence from China’s Belt and Road Initiative," Sustainability, MDPI, vol. 12(4), pages 1-24, February.
    7. Guo, Yanting & Zheng, Gang, 2019. "How do firms upgrade capabilities for systemic catch-up in the open innovation context? A multiple-case study of three leading home appliance companies in China," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 36-48.
    8. Shahzad (Shaz) Ansari & Raghu Garud & Arun Kumaraswamy, 2016. "The disruptor's dilemma: TiVo and the U.S. television ecosystem," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1829-1853, September.
    9. Lee, Keun & Malerba, Franco, 2017. "Catch-up cycles and changes in industrial leadership:Windows of opportunity and responses of firms and countries in the evolution of sectoral systems," Research Policy, Elsevier, vol. 46(2), pages 338-351.
    10. Steven Si & Xuebao Yu & Aiqi Wu & Shouming Chen & Song Chen & Yiyi Su, 2015. "Entrepreneurship and poverty reduction: A case study of Yiwu, China," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 119-143, March.
    11. Suzuki, Jun & Kodama, Fumio, 2004. "Technological diversity of persistent innovators in Japan: Two case studies of large Japanese firms," Research Policy, Elsevier, vol. 33(3), pages 531-549, April.
    12. Asei Ito, 2017. "Bottom-Up Industrialization in the People’s Republic of China: A Case Study of Industries Producing Small Things in Zhejiang," Studies in Economic History, in: Kazuko Furuta & Linda Grove (ed.), Imitation, Counterfeiting and the Quality of Goods in Modern Asian History, chapter 0, pages 245-281, Springer.
    13. Landini, Fabio & Lee, Keun & Malerba, Franco, 2017. "A history-friendly model of the successive changes in industrial leadership and the catch-up by latecomers," Research Policy, Elsevier, vol. 46(2), pages 431-446.
    14. Lee, Keun & Ki, Jee-hoon, 2017. "Rise of latecomers and catch-up cycles in the world steel industry," Research Policy, Elsevier, vol. 46(2), pages 365-375.
    15. Reinhardt, Ronny & Gurtner, Sebastian, 2015. "Differences between early adopters of disruptive and sustaining innovations," Journal of Business Research, Elsevier, vol. 68(1), pages 137-145.
    16. Yongchao Zhang & Hans Westlund & Johan Klaesson, 2020. "Report from a Chinese Village 2019: Rural Homestead Transfer and Rural Vitalization," Sustainability, MDPI, vol. 12(20), pages 1-22, October.
    17. Wang, Chenxiao & Qureshi, Israr & Guo, Feng & Zhang, Qingpu, 2022. "Corporate social responsibility and disruptive innovation: The moderating effects of environmental turbulence," Journal of Business Research, Elsevier, vol. 139(C), pages 1435-1450.
    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. Ting-Chung Huang & Chien-Ta Ho, 2023. "Are Customers Always Right? The Importance of Sincerity and Keenness in Creating Retail Sustainable Development," Sustainability, MDPI, vol. 15(6), pages 1-14, March.
    2. Tan, Fuqiang & Li, Xi & Agarwal, Reeti & Joshi, Yatish & Yaqub, Muhammad Zafar, 2024. "Does multilingual packaging influence purchasing in retail segment? Evidence from multiple experiments," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    3. Dura Codruta Cornelia & Ghicajanu Mihaela, 2025. "Overcoming Barriers To Sme Internationalization And Globalization: Insights From A Systematic Literature Review," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 164-175, October.

    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. Yuzhe Miao & Jaeyong Song & Keun Lee & Chuyue Jin, 2018. "Technological catch-up by east Asian firms: Trends, issues, and future research agenda," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 639-669, September.
    2. Li, Daitian & Malerba, Franco, 2024. "Technological change and the evolution of the links across sectoral systems: The case of mobile communications," Technovation, Elsevier, vol. 130(C).
    3. Lu Xu & Jie Xiong & Jie Yan & Richard Soparnot & Zhe Yuan, 2023. "Technological Uncertainty and Catch-Up Patterns: Insights of Four Chinese Manufacturing Sectors," Post-Print hal-04011634, HAL.
    4. Shi, Junwei & Zhang, Jiajia, 2025. "Short technology cycle time and firm innovation: Evidence from China," Research Policy, Elsevier, vol. 54(8).
    5. Kwak, Kiho & Kim, Namil, 2022. "Industrial Leadership Changes without Technological Discontinuity: Modularization, Institution-Led Market Discontinuity, and Market Development Strategy," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    6. Fischer-Kreer, Denise & Greven, Andrea & Grimm, Mareike & Brettel, Malte, 2025. "Understanding individual-level drivers of disruptive innovations: The role of founder's social identity," Research Policy, Elsevier, vol. 54(5).
    7. Lu Xu & Jie Xiong & Jie Yan & Richard Soparnot & Zhe Yuan, 2023. "Technological Uncertainty and Catch-Up Patterns: Insights of Four Chinese Manufacturing Sectors," Grenoble Ecole de Management (Post-Print) hal-04011634, HAL.
    8. Pietro Moncada-Paternò-Castello, 2022. "Top R&D investors, structural change and the R&D growth performance of young and old firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 1-33, March.
    9. Zahedi Rad, Vahid & Seifi, Abbas & Fadai, Dawud, 2023. "Policy design for transition from imitation to innovation in emerging photovoltaic sectors using a system dynamics model," Energy Policy, Elsevier, vol. 183(C).
    10. Lee, Keun & Malerba, Franco, 2017. "Catch-up cycles and changes in industrial leadership:Windows of opportunity and responses of firms and countries in the evolution of sectoral systems," Research Policy, Elsevier, vol. 46(2), pages 338-351.
    11. Pinheiro, Cristina, 2025. "Relatedness and economic complexity as tools for industrial policy: Insights and limitations," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 1-10.
    12. Wang, Zhiwei & Wei, Lican & Wang, Song, 2025. "Navigating disruptive innovation through opportunity recognition: A configurational approach to team learning," Technovation, Elsevier, vol. 144(C).
    13. Chang, Sungyong & Kim, Hyunseob & Song, Jaeyong & Lee, Keun, 2024. "Dynamics of imitation versus innovation in technological leadership change: Latecomers’ catch-up strategies in diverse technological regimes," Research Policy, Elsevier, vol. 53(9).
    14. Paulo N. Figueiredo & Janaina Piana, 2021. "Technological learning strategies and technology upgrading intensity in the mining industry: evidence from Brazil," The Journal of Technology Transfer, Springer, vol. 46(3), pages 629-659, June.
    15. Minaee, Mohammadreza & Elahi, Shaban & Majidpour, Mehdi & Manteghi, Manoochehr, 2021. "Lessons learned from an unsuccessful “catching-up” in the automobile industry of Iran," Technology in Society, Elsevier, vol. 66(C).
    16. Anderson, Guy & Luiz, John M., 2025. "The development of emerging market defence enterprises: late industrialisation, catching-up, and the challenge of moving beyond linking and leveraging11We thank the editor Prof Keun Lee and anonymous reviewers for their helpful comments throughout th," Research Policy, Elsevier, vol. 54(8).
    17. Yexin Liu & Weiwei Wu & Yanggi Kim, 2023. "How do latecomer firms achieve catch-up through technology management: a comparative analysis," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    18. Figueiredo, Paulo N. & Cohen, Marcela, 2019. "Explaining early entry into path-creation technological catch-up in the forestry and pulp industry: Evidence from Brazil," Research Policy, Elsevier, vol. 48(7), pages 1694-1713.
    19. Kwak, Kiho & Yoon, Hyungseok (David), 2020. "Unpacking transnational industry legitimacy dynamics, windows of opportunity, and latecomers’ catch-up in complex product systems," Research Policy, Elsevier, vol. 49(4).
    20. Zhou, William Chongyang & Yan, Daying & Sun, Sunny Li, 2022. "Climbing the Ladder: Inward Sourcing as an Upgrading Capability in Global Value Chains," Research Policy, Elsevier, vol. 51(3).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jsusta:v:14:y:2022:i:13:p:7559-:d:844306. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.