Multichannel integration through innovation capability in manufacturing SMEs and its impact on performance

Abstract

Purpose Using online channels is an opportunity for small and medium-sized enterprises (SMEs) in the manufacturing industry to reach new markets and reduce the dependency on distributors. The challenge remains that of integrating new online channels into existing networks effectively. This paper aims to identify to what extent multichannel integration is enhanced by the innovation capability of manufacturing SMEs and the subsequent influence on their performance. Design/methodology/approach Data were collected by means of a survey aimed at managers of small manufacturing firms in Mexico and were analysed through an advanced partial least squares (PLS) approach via SmartPLS. Findings Manufacturing SMEs with more advanced innovation capability achieve higher levels of multichannel integration. In turn, when multichannel integration is more advanced, manufacturing SMEs enjoy better results with respect to sales, fulfilling marketing objectives and improving relationships with customers. Research limitations/implications The model could be extended to accommodate other variables that may affect the effective integration of multiple channels. Practical implications Manufacturing SMEs can improve their results by integrating online channels with existing offline channels with a commitment to innovating in the market. Originality/value Analysing multichannel integration from the perspective of manufacturing firms, examining not only the positive consequences but also the underlying capabilities needed.