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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.
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.
Europe continues to be affected by Russia’s aggression against Ukraine, which has brought about high inflation rates, surging energy prices and general geopolitical instability. All of these notonly impact the purchasing power of consumers but also disrupt markets and global supply chains. Despite this, the findings of this year’s report show that e-commerce still continues to grow. In fact, the turnover in European B2C e-commerce increased from €849bn in 2021 to €899bn in 2022, even though the growth rate did decrease from 12% in 2021 to 6% in 2022. That said, thegrowth rate for 2023 is forecast to slightly increase to 8%, with the turnover in European B2C e-commerce also continuing its positive growth tendency.
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