Measuring the impact of e-commerce adoption on financial performance: a first- and second-order pls-sem approach in ecuadorian business firms.
DOI:
https://doi.org/10.51247/pdlc.v6i2.517Keywords:
e-commerce, financial performance, ICT capabilities, structural equation modelingAbstract
This study investigates the impact of e-commerce adoption on the financial performance of business firms in Ecuador. A first- and second-order Partial Least Squares Structural Equation Modeling (PLS-SEM) approach was used; survey data from firms in the El Oro province was analyzed; the study assesses the direct relationship between e-commerce adoption and financial performance. The findings indicate that although the direct impact of e-commerce on financial performance was not statistically confirmed, factors that facilitate e-commerce adoption and ICT capabilities are critical for its successful implementation. These results are critical for firms seeking to leverage digital technologies to increase their competitiveness and profitability. The study highlights the complexities of adopting digital strategies and suggests a holistic approach to navigating the digital transformation landscape, providing valuable lessons for both practitioners and academics in the field of business management.
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