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

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.

Study of Value Investing based on a Modern Approach

“…Gross profit margin shows how the retailer is profitable by dividing gross profit by net sales. Gross profit is the difference between retailers' cost of goods and net revenue (Liu & Si, 2022). The use of gross profit margin is relevant in the retail trade sector since it relates to the company's inventory items in store.…”

“…On the other hand, return on assets is a crucial metric for retail trade players since retailers depend on inventory to generate sales. ROA assesses the capability of retailers to generate revenue using available assets (Liu & Si, 2022). In calculating the ROA, one divides the company's total earnings by its total assets.…”

Melangkah Bersama Digital: Pendampingan Terstruktur Untuk Penguasaan Digital Marketing Di Kalangan UMKM

“…Strategi pemasaran digital penting bagi UKM (Liu & Si, 2022). UKM dapat menggunakan alat pemasaran digital untuk menarik, melibatkan, dan mempertahankan pelanggan, serta mempelajari preferensi mereka dan membangun hubungan pelanggan yang kuat (Kocić & Radaković, 2018).…”

“…Munculnya e-commerce telah membawa era baru perdagangan, dan UKM perlu mengadopsi e-commerce agar tetap relevan dan kompetitif (Akpan et al, 2020;Vuta et al, 2022).Pemasaran digital dipandang sebagai dasar untuk membuat perbedaan di pasar yang kompetitif dan memfasilitasi komunikasi tepat waktu dengan pelanggan. Oleh karena itu, penting bagi UKM untuk menggunakan strategi pemasaran digital untuk meningkatkan daya saing dan kesuksesan mereka di era digital (Liu & Si, 2022;Simberova et al, 2022;Taiminen & Karjaluoto, 2015). Tujuan dari pengabdian masyarakat tentang digital marketing bagi UMKM adalah untuk memberikan pemahaman dan keterampilan yang diperlukan kepada UMKM agar mereka dapat memanfaatkan potensi penuh dari digital marketing untuk pertumbuhan bisnis mereka.…”

The Strategy of Industrial Clusters to Deal with Disruptive Innovation

“…For example, the Castellon industrial cluster in Spain has successfully developed digital printing technology, replaced the core position of the Italian machinery manufacturing cluster in the value chain of the world ceramic tile industry, and successfully transformed and upgraded. Small and mediumsized enterprises in the Yiwu industrial cluster have successfully used disruptive innovation to achieve internationalization [2]. Therefore, disruptive innovation may be a fatal threat to industrial clusters, or it may be a major development opportunity.…”