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The Relationship between E-Commerce and Firm Performance: the Mediating Role of Internet Sales Channels
[journal article]
Abstract This paper postulates that the effect of e-commerce on firm performance is not direct and needs to be examined using mediating factors. The Ordinary Least-Squares (OLS) model was employed with the data of the Flash Eurobarometer 439 Survey entitled The Use of Online Marketplaces and Search Engines b... view more
This paper postulates that the effect of e-commerce on firm performance is not direct and needs to be examined using mediating factors. The Ordinary Least-Squares (OLS) model was employed with the data of the Flash Eurobarometer 439 Survey entitled The Use of Online Marketplaces and Search Engines by small and medium enterprises. The obtained findings provide support for the mediating hypothesis. To be more precise, while the relationship between e-commerce and firm performance is negative, it is positively mediated by certain types of internet sales channels. In particular, the benefits of e-commerce in terms of higher sales are more pronounced when firms use commercial websites and online marketplaces. On the other hand, the interaction between e-commerce and search engines has an insignificant effect on firm performance. This study advances research on e-commerce by emphasizing the importance of mediating effect.... view less
Keywords
website; online service; Internet; enterprise; Eurobarometer; sales; search engine; electronic business
Classification
National Economy
Interactive, electronic Media
Free Keywords
ZA6777 v1.0.0: Flash Eurobarometer 439 (The Use of Online Marketplaces and Search Engines by SMEs); e-commerce; firm performance; online marketplaces; commercial website; mediating approach
Document language
English
Publication Year
2020
Page/Pages
p. 1-17
Journal
Sustainability, 12 (2020) 17
Issue topic
Economic and Business Aspects of Sustainability
ISSN
2071-1050
Status
Published Version; peer reviewed