E-commerce platform integration offers opportunities for micro and small retailers to improve business performance, yet the mediating role of operational capabilities remains underexplored. This study examined whether order fulfillment capability mediates the relationship between Shopee platform integration and business performance among fashion retailers in Purworejo Regency, Indonesia. Grounded in the resource-based view and dynamic capabilities perspective, a cross-sectional survey involved 250 purposively selected retailers operating active Shopee stores. Data were collected using a 15-item, five-point Likert-scale questionnaire and analyzed through structural equation modeling with 5,000 bootstrap samples. Results indicated that platform integration significantly predicted order fulfillment capability (β = 0.382, p < .001) and business performance (β = 0.291, p < .001). Order fulfillment capability also positively predicted business performance (β = 0.347, p < .001). The indirect effect was significant (β = 0.133, 95% CI [0.064, 0.208]), supporting partial mediation. These findings highlight order fulfillment capability as an important mechanism linking digital platform integration to business performance. The study contributes empirical evidence supporting capability-based explanations of digital commerce performance among resource-constrained retailers.
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