Electronic commerce contribution to the SME performance in manufacturing firms: A structural equation model

María Verónica Alderete

doi:10.22201/fca.24488410e.2019.1922

Abstract

<p>The role Information and Communication Technologies (ICT) play in achieving a better organizational performance still needs further analysis among small and medium sized enterprises (SME) from developing countries. This study aims to extend the empirical literature on the relationship between ICT, electronic commerce and SME performance in developing countries. To achieve this goal, we employ a sample of 87 manufacturing firms from the city of Bahía Blanca, Argentina in the year 2015. By estimating a structural equation model, we obtain that electronic commerce adoption has a positive and significant influence on SME sales which is reinforced by the level of ICT use. Other organizational factors such as firm size and public programs explain performance, but are not significant predictors of the electronic commerce adoption. <strong></strong></p>

Highlights

Globalization and the increasing complexity of production processes have changed operations’ management leading to a new challenge for small and medium sized enterprises (SME)
This study aims to extend the empirical literature on the relationship between Information and Communication Technologies (ICT), electronic commerce and SME performance in developing countries
By estimating a structural equation model, we obtain that electronic commerce adoption has a positive and significant influence on SME sales which is reinforced by the level of ICT use

Summary

Introduction

Globalization and the increasing complexity of production processes have changed operations’ management leading to a new challenge for small and medium sized enterprises (SME). Most studies argue that Information and Communication Technologies (ICT) effect on productivity is positive and significant (Liao et al, 2016; Corrado et al, 2017). In this context, ICT are critical for firm success. The firm can achieve sustainable competitive advantages by using them In this vein, ICT investments are relevant per se, because of the operative advantages related to ICT use, and due to complementarities with intangible assets such as human capital, expertise and organizational capital (Taher, 2012; Rivard et al, 2006). Electronic commerce (e-commerce) becomes a competitive strategy and tool to remain competitive among SME (Yang et al, 2015; Abebe, 2014; Raymond et al, 2011; Wirtz et al, 2010; Kapurubandara, 2009)

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