The Impact of Interactivity and Design Sophistication on the Performance of Commercial Websites for Small Businesses

Abstract

This study of small businesses involved in Internet‐based electronic commerce focuses on the relationship between the design of a website and its performance. Specifically, this study examines the relationships between two design constructs, the level of interactivity and design sophistication, and two performance measures, an overall measure of performance and the number of visitors to the site. Furthermore, the study explores the role of two contingency variables, market turbulence and the age of the website, on these relationships. The results indicate that the level of interactivity of a website is positively associated with overall performance, but not associated with the number of visitors. Furthermore, market turbulence moderates the relationship between interactivity and performance so that the two constructs are positively associated under high levels of market turbulence but not associated under low levels of market turbulence. Results also show that design sophistication is associated with a greater number of visitors but not with overall performance. These findings suggest that the performance of a website is affected differently by different design constructs and that multidimensional measures of performance are necessary to properly evaluate performance.