The impact of e-commerce implementation on the profitability of belgian SMES: a quantitative analysis

Abstract

The impact of e-commerce on the profitability of small and medium Belgian companies (SMEs) is the focus of this research study. The primary objective is to analyse whether the digital implementation of companies, particularly through e-commerce, has a significant influence on the financial performance of Belgian SMEs. The research question revolves around the existence of an impact of e-commerce on the profitability of these companies. The methodology employed in this study involved conducting a survey among numerous Belgian SMEs and subsequently setting up a regression model. The aim was to collect data through the survey and then analyse it using statistical techniques to determine if there is a relationship between the level of digital implementation and profitability. Regression analysis, Principal Component Analysis (PCA), and Analysis of Variance (ANOVA) were used to analyse the collected data. The existing literature on the impact of e-commerce on financial performance was thoroughly reviewed to provide a solid theoretical foundation for the study. Empirical data was retrieved from the survey responses and the Bel-first database, enabling a comprehensive analysis of the research question. The regression analysis results revealed that most of the independent variables, including the digital implementation (DI) variables, did not have statistically significant impacts on the return on assets (ROA) of Belgian SMEs. Similarly, the ANOVA results indicated that the degree of digital implementation did not significantly affect the profitability of the companies in the sample. It is important to acknowledge certain limitations that may influence the findings of this research. One potential limitation is the response rate, as the number of companies that participated in the survey may not fully represent the entire population of Belgian SMEs. In conclusion, despite the growing body of research on the impact of e-commerce on financial performance, the findings remain inconclusive and sometimes conflicting. This study contributes to the existing literature by examining the Belgian context and highlighting the need for further investigation to explore additional factors, and gain a more comprehensive understanding of the complex relationship between e-commerce and profitability in the context of Belgian SMEs.