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Contrasting E-Commerce Business Models: Performance Implications For Small Enterprises

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  • HOWARD S. RASHEED

    (University of North Carolina, Wilmington, 601 S. College Road, Wilmington, NC 28403, USA)

Abstract

Pure plays use the Internet as a market entry strategy, and brick and clicks use the Internet as an alternate channel of distribution. Theoretical frameworks from entrepreneurship, marketing, and electronic commerce are used to explore performance differences between these business models. This study uses a geographically diverse sample of 240 small enterprises engaged in Internet-based consumer marketing. Results suggest brick and clicks enjoy performance advantages over pure plays in international revenue growth. Higher Internet promotional expenditures positively impact revenue growth. Firms using the Internet for sales transactions experience negative profit expectations and revenue growth. Firms using the Internet for product distribution experience significant international sales growth. Product depth influences profit expectations and domestic revenue growth. These results should provide a basis for building theory relative to performance implications of Internet-based commerce for small enterprises.

Suggested Citation

  • Howard S. Rasheed, 2009. "Contrasting E-Commerce Business Models: Performance Implications For Small Enterprises," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 89-101.
    • Handle: RePEc:wsi:jdexxx:v:14:y:2009:i:01:n:s1084946709001168
    DOI: 10.1142/S1084946709001168
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    Cited by:

    1. Lambert, Susan C. & Davidson, Robyn A., 2013. "Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010," European Management Journal, Elsevier, vol. 31(6), pages 668-681.
    2. Pezderka, Noemi & Sinkovics, Rudolf R., 2011. "A conceptualization of e-risk perceptions and implications for small firm active online internationalization," International Business Review, Elsevier, vol. 20(4), pages 409-422, August.
    3. Chandna, Vallari & Salimath, Manjula S., 2018. "Peer-to-peer selling in online platforms: A salient business model for virtual entrepreneurship," Journal of Business Research, Elsevier, vol. 84(C), pages 162-174.
    4. Haya Ajjan & Frances Fabian & David Tomczyk & Hala Hattab, 2015. "Social Media Use To Support Entrepreneurship In The Face Of Disruption," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-27, September.

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