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The Relationship between E-Commerce and Firm Performance: The Mediating Role of Internet Sales Channels

Author

Listed:
  • Jelena Šaković Jovanović

    (Faculty of Mechanical Engineering, University of Montenegro, 81000 Podgorica, Montenegro)

  • Radoje Vujadinović

    (Faculty of Mechanical Engineering, University of Montenegro, 81000 Podgorica, Montenegro)

  • Elizabeta Mitreva

    (Faculty of Tourism and Business Logistics, University of Goce Delčev, 2000 Štip, North Macedonia)

  • Cristiano Fragassa

    (Department of Industrial Engineering, University of Bologna, 40126 Bologna, Italy)

  • Aleksandar Vujović

    (Faculty of Mechanical Engineering, University of Montenegro, 81000 Podgorica, Montenegro)

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 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.

Suggested Citation

  • Jelena Šaković Jovanović & Radoje Vujadinović & Elizabeta Mitreva & Cristiano Fragassa & Aleksandar Vujović, 2020. "The Relationship between E-Commerce and Firm Performance: The Mediating Role of Internet Sales Channels," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:6993-:d:405006
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    References listed on IDEAS

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    2. Lyulyov, Oleksii & Pimonenko, Tetyana & Saura, Jose Ramon & Barbosa, Belem, 2024. "How do e-governance and e-business drive sustainable development goals?," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    3. Jianli Gao & Abu Bakkar Siddik & Sayyed Khawar Abbas & Muhammad Hamayun & Mohammad Masukujjaman & Syed Shah Alam, 2023. "Impact of E-Commerce and Digital Marketing Adoption on the Financial and Sustainability Performance of MSMEs during the COVID-19 Pandemic: An Empirical Study," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    4. Yashuo Xue & Mei Kong & Ruiying Chen & Qingmin Wang & Yangyang Shen & Jiakun Zhuang, 2023. "How Does Internet Use Promote Returned Migrant Workers’ Entrepreneurship: Evidence from Rural China," Sustainability, MDPI, vol. 15(13), pages 1-22, June.

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