The E-Commerce Performance of Internet of Things (IoT) in Disruptive Innovation: Case of XiaoMi

Abstract

Disruptive innovation theory is a technological innovation and strategic management theory. After achieving mobile market success through e-commerce, XiaoMi, one of the largest e-commerce companies in China, also began to adopt disruptive innovation technologies into IoT ("Internet of Things") platform and IoT hardware, also achieving huge success in the IoT hardware industry. This paper aims to discuss the value of IoT strategy in XiaoMi e-commerce performance from the disruptive innovation perspective and to empirically show the effect of IoT strategy on XiaoMi's e-commerce performance from a disruptive innovation perspective. Results showed, compared with XiaoMi's internet service business, XiaoMi IoT related business contributes significantly to XiaoMi's business performance although the XiaoMi smartphone business still played a dominant role in XiaoMi's overall e-commerce performance.