Impact of introducing e-commerce on small and medium enterprises – a case on logistics provider

Abstract

Small and medium enterprises (SME) significantly alleviate poverty and generate employment to achieve sustainable economic growth. Using electronic devices, e-commerce allows an immediate and advanced communication service to accomplish business transactions. Considering logistics provider as a case, this paper aims to examine the impact of adopting an e-commerce technology on its customers’ and agents’ satisfaction. The authors use the difference in difference methodology to examine these effects and find positive impacts on both customers and service providers. As SMEs are widely considered as the powerhouse of an economy, the authors’ findings suggest that using e-commerce not only makes an SME agent more efficient but also accelerates an SME business transaction, which ultimately helps to achieve sustainable economic growth. A few studies are conducted in examining the impact of SME on economy. However, according to the authors’ knowledge, this is the first research that examines the impact of e-commerce on SME.