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An investigation of the effect of electronic business on financial performance of Spanish manufacturing SMEs

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  • Popa, Simona
  • Soto-Acosta, Pedro
  • Perez-Gonzalez, Daniel

Abstract

This paper aims to fill research gaps in the existing literature on the effect of electronic business on financial firm performance within the specific context of manufacturing Small and Medium Enterprises (SMEs). More specifically, this research analyzes not only the direct effects of e-business on firm performance but also the mediating effect of organizational innovation the relationship. Building on the knowledge and resource-based views, the proposed research model and its associated hypotheses are tested by using partial least squares (PLS) structural equation modeling on a dataset of Spanish manufacturing SMEs. Results suggest that electronic business has a direct effect on financial performance and is positively associated to organizational innovation. In addition, results show that the relationship between electronic business and financial performance is mediated by organizational innovation.

Suggested Citation

  • Popa, Simona & Soto-Acosta, Pedro & Perez-Gonzalez, Daniel, 2018. "An investigation of the effect of electronic business on financial performance of Spanish manufacturing SMEs," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 355-362.
    • Handle: RePEc:eee:tefoso:v:136:y:2018:i:c:p:355-362
    DOI: 10.1016/j.techfore.2016.08.012
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    Cited by:

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    2. Falahat, Mohammad & Ramayah, T. & Soto-Acosta, Pedro & Lee, Yan-Yin, 2020. "SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs’ international performance," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    3. Chatterjee, Susmita & Dutta Gupta, Sangita & Upadhyay, Parijat, 2020. "Technology adoption and entrepreneurial orientation for rural women: Evidence from India," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    4. Ahn, Sang-Jin, 2020. "Three characteristics of technology competition by IoT-driven digitization," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    5. Camelia-Daniela Hategan & Ruxandra-Ioana Pitorac & Vasile-Petru Hategan & Carmen Mihaela Imbrescu, 2021. "Opportunities and Challenges of Companies from the Romanian E-Commerce Market for Sustainable Competitiveness," Sustainability, MDPI, vol. 13(23), pages 1-15, December.
    6. Pellegrini, Giustina & de Mattos, Camila Silva & Otter, Verena & Hagelaar, Geoffrey, 2022. "Exploring how EU agri-food SMEs approach technology-driven business model innovation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(3), December.
    7. Ganotakis, Panagiotis & D'Angelo, Alfredo & Konara, Palitha, 2021. "From latent to emergent entrepreneurship: The role of human capital in entrepreneurial founding teams and the effect of external knowledge spillovers for technology adoption," Technological Forecasting and Social Change, Elsevier, vol. 170(C).

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