Small and Nimble : A Resource-Based Analysis of Organization Capabilities Integral to the Success of Small Online Vendors

The resourced-based view (RBV) is one of the most frequently cited theories in organization research. In the field of Information Systems (IS), the RBV has been used to explain organizations' IT capabilities and firm performance. Recently, small online vendors have emerged as a viable organizational form in the Internet business arena, and their population is growing. This paper employs a grounded theory approach to develop an understanding of how small online vendors use IT artifacts to enhance their organization capabilities and, ultimately, to succeed. Based on content analysis of 176 interviews with small, successful vendors in China's largest online marketplace (Taobao), we find that use of instant messaging software and web 2.0 technologies (e.g. blogs, social networking sites) contribute significantly to small online vendor's learning and social networking capability, which in turn allows them to succeed. Theoretical and managerial implications are discussed