Does e-Commerce Capability Mediate The Strategic Orientation to Performance and Hybrid Channel to Performance? (An Empirically Analysis of Micro and Small Businesses in Indonesia)

Abstract

Today, e-commerce has been used as a fast vehicle to transform the world that significantly affects businesses, including small businesses. Many challenges and problems are faced, especially in terms of dealing with e-commerce, such as there is much lack of knowledge about developing technology, customer demand, and human and financial resource management. However, after the pandemic Covid-19 situation, entrepreneurs must rise from adversity, fast, and quickly adapt to the situation. In previous research, Entrepreneurial Orientation, Market Orientation, Learning Orientation, and a combination, Strategic Orientation had a positive and significant effect on Performance. Likewise, Hybrid Channel had a positive and significant effect on Performance. Furthermore, successful entrepreneurs adopt e- commerce in their business development or e-Commerce Capabilities. The purpose of this paper is to prove empirically whether the variable of e-Commerce Capability in mediating the Orientation Strategy or Hybrid Channel to performance in the context of micro and small businesses. The paper used SEM Analysis Covariant Based Structural Equation Modelling (CB-SEM) to test a hypothesis and AMOS as a statistical tool. The data states that the important factors affecting performance, especially micro and small entrepreneurs, are strategic orientation and the use of hybrid channels. However, the data has not been able to show that e-commerce capability can mediate the effect of both on performance.