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What drives business performance of small and medium-sized enterprises in cross-border electronic commerce?

In cross-border e-commerce, electronic retailers (e-retailers) aim to extend their sales activities via the Internet beyond national borders. Unlike large companies, small and medium-sized enterprises are struggling with their international online expansion. This phenomenon is not limited to countries with a developed e-commerce market; e-retailers from emerging e-commerce markets, too, face the problem. This study investigates what the drivers are of business performance of SMEs in cross-border e-retailing, and how drivers differ between developed and emerging e-commerce markets in Europe. Structural equation modelling analyses with the lavaan package in R on a sample of 453 owners and directors of SMEs from 20 countries, show that foreign market orientation not only directly influences business performance in cross-border e-commerce, but also indirectly through communication efforts in foreign markets. These results hold for both developed and emerging markets, however, there are two interesting differences. First in the influence of foreign market orientation and communication efforts on business performance, and second in the impact of the number of years the electronic e-retailer is active in cross-border e-commerce.

Strategic orientations and digital marketing tactics in cross-border e-commerce: Comparing developed and emerging markets

In this article, the impact of strategic orientations on the use of digital marketing tactics and, subsequently, on the international business performance of small electronic retailers (e-retailers) in cross-border electronic commerce (e-commerce) is analysed. Furthermore, these relationships are compared between e-retailers originating in both developed and emerging e-commerce markets. Using a sample of 446 small business-to-consumer e-retailers from 20 European countries, we find that the deployment of digital marketing tactics has a positive effect on international business performance. Of the strategic orientations examined, foreign market orientation is most associated with the use of digital marketing tactics. Remarkably, growth orientation only has a positive effect on e-retailers from developed e-commerce markets, while customer orientation negatively affects e-retailers from emerging e-commerce markets. The differences between e-retailers from developed and emerging e-commerce markets are prominent and show that markets should not be considered as either uniform or generalisable.

Business performance and purchase intentions in cross-border e-commerce

Cross-border e-commerce is flourishing worldwide and is particularly intriguing because it allows sellers and buyers to regularly cross national borders to distant and distinct countries via the Internet. Marketers need to understand the challenges retailers and consumers may face to develop effective marketing strategies, attract foreign consumers to retailers’ websites, and convert their visits into actual purchases. This dissertation contributes to the growing literature on cross-border e-commerce by examining how e-retailers can shape their marketing strategy to reach foreign consumers who may make a purchase and what drives consumers’ perceptions and preferences before making thatpurchase. To this end, study 1 examines how and to what extent small e-retailers can shape their marketing strategies to increase their use of digital marketing tactics and thereby improve their performance in foreign markets by comparing e-retailers originating from developed and emerging e-commerce markets. Study 2 focuses on how store values and country stereotype perceptions leadto higher trust between consumers and retailers in foreign e-stores, and how this differs for European consumers shopping at U.S. and Chinese e-stores. The thirdstudy addresses why consumers buy from foreign e-stores when they can buy domestically. It examines three different categories of determinants across generational cohorts: e-store characteristics, domain-specific values, and human values. Overall, this dissertation demonstrates the drivers of small retailers’ business performance and consumers’ purchase intentions in cross-bordere-commerce while showing that neither e-retailers nor consumers should be considered uniform or generalizable.

2021 European E-commerce Report

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