Click and make-up

A study of traditional cosmetics retailers in China’s Guangdong province suggests that digital skills alone are not enough to improve long-term business performance. The study, published in the International Journal of Business Information Systems, suggests that value depends on whether traditional companies can use digital skills to become more resilient and innovative.

The researchers surveyed some 424 retailers. They identified three factors that affected performance improvements: mobile marketing, artificial intelligence (AI) capability, and future-orientated managerial skills. These factors were all associated with better organisational resilience. They add that this greater resilience led to increased sustainability both directly and by improving innovation capability.

The findings address a growing challenge for traditional retailers in China, and perhaps elsewhere. Guangdong produces almost half of China’s cosmetics. However, smaller “bricks-and-mortar” businesses face mounting competition from digital-first brands that are changing consumer habits. They also now have to deal with tighter regulatory requirements.

The researchers argue that resilience and innovation bridge digital resources and sustainable performance. This supports two established management theories. The first, the resource-based view, which treats valuable organisational assets as a source of competitive advantage. Secondly, dynamic capabilities theory, which focuses on how firms adapt those resources to changing conditions.

They recommend that business owners invest in accessible AI tools, mobile customer engagement, and leadership development. Conversely, they encourage policymakers to expand programmes that strengthen digital skills among these kinds of small and medium-sized enterprises.

Wang, J. and Rattanapun, S. (2026) ‘Digital and managerial capabilities, resilience, and innovation for the sustainability of traditional cosmetic businesses in China’, Int. J. Business Information Systems, Vol. 52, No. 5, pp.1–20.

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