Information Interaction Capabilities in the Digital Economy: A Longitudinal Case Study of Xiaomi Corporation

A major challenge for managers in the digital economy era is reduce uncertainty. Information interaction capabilities (IICs) have been proposed as an organizational capability that facilitates the creation of value by leveraging uncertainty. This is achieved by assisting managers in the configuration, application, and integration of diverse information interaction resources into novel capabilities within an emerging digital intelligence technology environment. However, due to the elusive nature of IICs, managers may encounter difficulties in creating value in digital economy if they are unable to accurately understand the formation mechanism of IICs. Therefore, we first seek to propose the components of IICs. Specifically, by the Gioia methodology, we identify a set of capabilities of IICs—bianyi capability (triadic mutability capability), self-cognizance capability (introspective capability), contextual empathy capability, and ecosystem orchestration capability. Second, through a longitudinal case analysis of Xiaomi’s evolutionary trajectory—segmented into three distinct phases based on milestone events—we systematically studied the formation mechanism of IICs. Xiaomi has demonstrated a relatively completely and weak IICs since its inception. Through case studies of its evolutionary trajectory, we observe that IICs has progressively evolved and strengthened via four interconnected dimensions, forming a mature and robust IICs. Finally, we explore the impact of IICs on competitive advantages and construct a framework of competitive advantage suitable for an environment of digital economy. The study’s implications for creating value in digital economy environments by revealing components and formation mechanism of IICs are discussed.