Dynamic effect of critical success factors of SMEs on entrepreneurial performance via e-commerce performance

Abstract

This study examines the critical success factors (CSFs) that influence the adoption of e-commerce platforms by small and medium-sized enterprises (SMEs) and see how the adoption affects the SMEs' subsequent entrepreneurial performance. Building on the technology-organization-environment (TOE) and theory of entrepreneurial competency (TEC), the study presents and evaluates a comprehensive model that considers CSFs components as well as the moderating effect of entrepreneurial competencies. Convenience sampling was used to gather data from a survey of Bangladeshi SMEs using a standardized questionnaire; structural equation modeling (SEM) was then used to analyze 384 valid samples. Empirical findings indicate that CSFs elements, particularly organizational and external factors, have a significant association with e-commerce performance. The study also presents and supports the idea that entrepreneurial competencies have a moderating influence on the link between overall entrepreneurial performance and e-commerce performance. The findings contribute theoretically by outlining key influencers of e-commerce and entrepreneurial performance offering insights for young entrepreneurs and future researchers. It underscores the importance of focusing on CSFs for ensuring business success. Notably, the research emphasizes the pivotal role of entrepreneurial competencies for young entrepreneurs and SME owners providing practical insights for enhancing personal qualities and decision-making abilities to ensure entrepreneurial success in the dynamic e-commerce industry.