Knowledge absorptive capacity of e-commerce firms: The moderating role of industry competition

This study examines knowledge absorptive capacity (ACAP) in e-commerce firms, focusing on the moderating role of industry competition (IC). Leveraging Partial Least Squares Structural Equation Modeling (PLS-SEM) with data from Vietnamese e-commerce firms, we explore the impact of internal factors, including accumulated knowledge, leadership style, IT capability, knowledge management capability, and organizational structure, on ACAP. Our findings indicate that each factor significantly contributes to enhancing ACAP, with leadership style showing consistently strong effects across different firm sizes. Furthermore, IC amplifies the impact of certain internal factors, especially in medium and large enterprises, emphasizing the importance of accumulated knowledge and leadership in competitive environments. Notably, IT capability, while crucial in medium and large firms, shows limited effects in mega enterprises, suggesting a shift in resource prioritization at higher organizational scales. This study adds to ACAP literature by underscoring the dynamic relationship between competitive pressures and internal resources. Practical recommendations are provided for e-commerce managers to enhance ACAP strategically by aligning resources with market demands. This research highlights the importance of firm size and competitive intensity in shaping the absorptive capabilities crucial for maintaining competitive advantage in fast-evolving markets.