E-commerce and micro and small industries performance: The role of firm size as a moderator

Abstract

E-commerce is a strategy that can be used by micro and small industries (MSIs) to boost business performance in the current digital era. Using the resource-based view (RBV) perspective, this study aims to examines the effect of e-commerce on MSI performance and the moderating role of firm size in this relationship. This study used secondary data from 1,084 MSIs located in Karanganyar Regency, Central Java Province, Indonesia, and the multiple linear regression (OLS) method as an analytical tool. The results show that e-commerce significantly and positively affects the financial performance of MSIs, as measured by turnover, profit, and return on asset (ROA). Business size, proxied by the number of workers, is found to moderate the effect of e-commerce on the financial performance with a weakening effect, which means that smaller firms adopt e-commerce as a resource to improve their customer base, brand recognition, and advertising. This study expands the RBV theory through the role of e-commerce as a resource of MSIs in improving firm performance. The findings also demonstrate to the government and micro and small enterprises (MSEs) the value of the e-commerce method in improving MSE performance and encourage them to utilize it as effectively as feasible.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 31 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.