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Scenarios to Improve E-Commerce SMEs Activity Based on Their Classification: A Case Study on Romania

Author

Listed:
  • Ana Maria Mihaela Iordache

    (Department of Informatics, Statistics and Mathematics, Romanian-American University, 012101 Bucharest, Romania)

  • Alexandru Ionescu

    (Department of Commerce, Economic Integration and Business Administration, Romanian-American University, 012101 Bucharest, Romania)

  • Vlad Gabriel Cârstea

    (Department of Commerce, Economic Integration and Business Administration, Romanian-American University, 012101 Bucharest, Romania)

  • Hanna Chung

    (Department of Informatics, Statistics and Mathematics, Romanian-American University, 012101 Bucharest, Romania)

  • Nicoleta Rossela Dumitru

    (Department of Management—Marketing, Romanian-American University, 012101 Bucharest, Romania)

  • Bogdan Glăvan

    (Department of Commerce, Economic Integration and Business Administration, Romanian-American University, 012101 Bucharest, Romania)

Abstract

With the onset of the COVID-19 pandemic, society has increasingly relied on alternative ways to procure goods, leading to an e-commerce boom. This study analyzes the performance of small and medium-sized enterprises (SMEs) that are active in e-commerce in Romania and provides recommendations for entrepreneurs to improve their efficiency. Through unsupervised learning techniques, three classes are identified according to company performance: (1) a class of high-performing companies whose entrepreneurs took the risk of investing in the business, (2) a class of medium-performing companies that maintained their position in the market and (3) a class of financially weak companies whose managers adopted risk-averse, defensive policies. Furthermore, we present scenarios for moving companies from a lower-performing class to a higher-performing class. The research identifies the strategies that managers need to adopt in order to stimulate the activity of e-commerce companies, provides foreign investors a rubric for making investment decisions, and offers a starting point for an entrepreneurship course in academia.

Suggested Citation

  • Ana Maria Mihaela Iordache & Alexandru Ionescu & Vlad Gabriel Cârstea & Hanna Chung & Nicoleta Rossela Dumitru & Bogdan Glăvan, 2023. "Scenarios to Improve E-Commerce SMEs Activity Based on Their Classification: A Case Study on Romania," Sustainability, MDPI, vol. 15(15), pages 1-19, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:15:p:11963-:d:1210006
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    References listed on IDEAS

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