The Effect of E-Commerce on SME Performance

International Journal of Applied Research in Management and Economics

Year: 2018 | Volume: 1 | Issue: 2 | Page No.: 71-81

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The Effect of E-Commerce on SME Performance

Amir Sedighi and Behroz Sirang


In recent decades with development of internet, the e-commerce has been recognized as an instrument for organizing the business model. in applying the e-commerce, the large firms generally face lower financial and infrastructural barriers while the small to medium enterprises face with resource limitations, particularly the financial resources in applying this tool. Hence, the main objective of this research is to investigate the effect of e-commerce on Small to Medium Enterprises (SME) performance. This research is a descriptive-correlative research. The population of this research involves all managers of SMEs in Tehran which was determined to be 373 subjects based on Kerjcie Morgan table as the sample size. The researcher administrated questionnaire was provided based on studies (Soto-Acosta et al. 2015, 2015). The data analysis was based on structural equation modeling. In this research, the partial least square was also used. the results indicated that using the e-commerce is significantly effective on SME performance and e-commerce application is significantly effective on performance elements such a financial performance, internal process, customers, growth and learning. The relationship between e-commerce and performance and its elements was also moderated by innovation.

Keywords:E-Commerce, Performance, Customer, Innovation, Learning, Internal Processes

How to cite this article:
Sedighi, A. & Sirang, B. (2018). The Effect of E-Commerce on SME Performance. International Journal of Applied Research in Management and Economics, 1 (2): 71-81.