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Industry characteristics, stages of E-commerce communications, and entrepreneurs and SMEs revenue growth

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  • Saridakis, George
  • Lai, Yanqing
  • Mohammed, Anne-Marie
  • Hansen, Jared M.

Abstract

This paper empirically examines the role of industry characteristics portrayed by information intensity of value chain or product in the relationship between the stages of E-commerce development and revenue growth for a large representative sample of small and medium-sized enterprises (SMEs) and other entrepreneurs who operate in the United Kingdom. The results indicate that SMEs characterised by (A) high information intensity of value chain or product of industry that (B) have their own business website, a third-party website and/or a social profile, on average more often report increases in revenue growth versus their counterparts in either (A) other industries or that (B) do not have the E-commerce development. However, the likelihood of improved performance does not vary significantly among SMEs which are at different development stages of E-commerce. This finding holds regardless of whether the business is in a high value chain information intensive industry or a product information intensive industry. In short, business performance appears to improve as entrepreneurial organizations adopt information technology to facilitate greater market communication and increased exposure to online shoppers. Furthermore, this is irrespective of the level of sophistication of the interface, the design of the E-commerce technology and the high information intensity types of the industry. To conclude, this paper presents some discussions and recommendations for entrepreneurial research and practice that are implied by the results.

Suggested Citation

  • Saridakis, George & Lai, Yanqing & Mohammed, Anne-Marie & Hansen, Jared M., 2018. "Industry characteristics, stages of E-commerce communications, and entrepreneurs and SMEs revenue growth," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 56-66.
    • Handle: RePEc:eee:tefoso:v:128:y:2018:i:c:p:56-66
    DOI: 10.1016/j.techfore.2017.10.017
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    4. Viglia, Giampaolo & De Canio, Francesca & Stoppani, Anna & Invernizzi, Anna Chiara & Cerutti, Stefania, 2021. "Adopting revenue management strategies and data sharing to cope with crises," Journal of Business Research, Elsevier, vol. 137(C), pages 336-344.
    5. Kay H. Hofmann & Axel Jacob & Massimo Pizzingrilli, 2022. "Overcoming Growth Challenges of Sustainable Ventures in the Fashion Industry: A Multinational Exploration," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
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    8. Jun Hong Park & Hyunseog Chung & Ki Hong Kim & Jin Ju Kim & Chulung Lee, 2021. "The Impact of Technological Capability on Financial Performance in the Semiconductor Industry," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    9. Annosi, Maria Carmela & Capo, Francesca & Appio, Francesco Paolo & Bedetti, Ivan, 2023. "Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    10. María Verónica Alderete & María Susana Porris, 2023. "Amazon Board Of Directors: Analysis Of Sme E-Commerce Adoption And Its Relationship With Local Institutions," Revista Ciencias Administrativas (CADM), IIA, Universidad Nacional de La Plata, Instituto de Investigaciones Administrativas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, issue 22, pages 1-17, July-Dece.
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