A Knowledge-based View of Cross Border ECommerce on Tmall Global in the context of New Zealand Natural Health Product SMEs

Abstract

The demand for natural health products in China has grown drastically in the past two decades, making it a lucrative market for New Zealand’s small and medium sized enterprises (SMEs) in the natural health products industry. However, these SMEs face a unique set of challenges which may hinder them from expanding into the Chinese market. The advent of Cross Border E-Commerce (CBEC) holds promising potential for these SMEs, lowering the barriers of cost, distance, and regulation. Despite the significant changes to SME internationalisation brought about by the development of CBEC, there have been no studies conducted from a knowledge-based perspective. Understanding CBEC from the lens of knowledge will further enable SMEs’ internationalisation process. This study aims to investigate the knowledge required by New Zealand natural health product SMEs when engaging in CBEC via Tmall Global in the Chinese Market. A qualitative exploratory approach was used to allow for an in-depth, multi-faceted exploration of the CBEC phenomenon in the context of the New Zealand natural health product SMEs. Primary data collection consisted of semi-structured interviews with SME managers and industry advisors to gain a comprehensive overview of the industry. The main findings drawn from this research illustrate the complexities of CBEC via Tmall Global and the heightened need for knowledge. SMEs that partake in CBEC are required to have an intimate knowledge of the CBEC ecosystem to have a holistic understanding of Tmall Global. This knowledge allows SMEs to identify opportunities and strategies for effective CBEC internationalisation. Internationalisation via Tmall Global is a gradual process that involves the incremental accumulation of knowledge through experience and networks. SMEs who want to engage in CBEC via Tmall Global need to possess strong network knowledge, brand awareness, and partnerships with relevant actors in the CBEC ecosystem.