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Impact of E-Commerce and Digital Marketing Adoption on the Financial and Sustainability Performance of MSMEs during the COVID-19 Pandemic: An Empirical Study

Author

Listed:
  • Jianli Gao

    (Business School, Shandong Technology and Business University, Yantai 264005, China)

  • Abu Bakkar Siddik

    (School of Management, University of Science and Technology of China (USTC), Jinzhai Road, Hefei 230026, China)

  • Sayyed Khawar Abbas

    (Doctoral School of Economics, Business and Informatics, Corvinus University of Budapest, H-1093 Budapest, Hungary)

  • Muhammad Hamayun

    (Department of Management Science and Commerce, Bacha Khan University, Charsadda 25100, Pakistan)

  • Mohammad Masukujjaman

    (Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

  • Syed Shah Alam

    (Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

Abstract

The COVID-19 pandemic has remarkably affected the business processes and performance of micro-, small-, and medium-sized enterprises (MSMEs) across the world. MSMEs have had to adopt and implement numerous strategies to sustain their businesses, and their financial and sustainability performance has been impacted by their choice of e-commerce (EC) platforms and digital marketing (DM) strategies. The objective of this research was to explore the effects of EC and DM platforms and strategies on facilitating MSMEs’ financial and sustainability performance amid the devastating COVID-19 pandemic. This study gathered data from 212 MSMEs from three districts of Bangladesh. A partial least squares structural equation modeling (PLS-SEM) approach was undertaken, to test the hypothesized model. The findings revealed that e-commerce had a significant association with MSMEs’ financial performance and sustainability amid the pandemic. It was also observed that digital marketing strategies had a substantial impact on MSMEs’ financial performance. However, the linkage between DM strategies and MSMEs’ sustainability was found to be insignificant. Furthermore, it was found that the financial performance of MSMEs mediated the relationship between e-commerce adoption and their sustainability performance. These findings contribute to the extant technology adoption literature, by exploring the role of e-commerce and digital marketing on firms’ financial outcomes amid a global pandemic. Managers and policymakers of small businesses can learn several things from this study, and understand how crucial digital commerce and digital marketing are to their success and long-term survival.

Suggested Citation

  • Jianli Gao & Abu Bakkar Siddik & Sayyed Khawar Abbas & Muhammad Hamayun & Mohammad Masukujjaman & Syed Shah Alam, 2023. "Impact of E-Commerce and Digital Marketing Adoption on the Financial and Sustainability Performance of MSMEs during the COVID-19 Pandemic: An Empirical Study," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1594-:d:1035254
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    3. John Rey G. Lobaton, 2023. "Micro, small, and medium-sized enterprises (MSMEs) and their employees have been particularly hard hit by the recession because of the COVID-19 pandemic. This study assesses the level of vulnerability," Technium Business and Management, Technium Science, vol. 3(1), pages 104-125.
    4. 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.

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