Chapter 5: E-Commerce in Peruvian SMEs: The Effect of Digitalisation and Operational Effectiveness on Their Performance

The objective was to examine the impact of e-commerce on the business performance of 583 Peruvian small and medium-sized enterprises, considering the hierarchy of digitalisation and operational effectiveness. To test the hypotheses, the research team constructed a Partial Least Squares Structural Equation Modeling structural equation model. The study’s findings show that digitalisation, e-commerce and improved operational effectiveness contribute significantly to business performance. Direct and indirect impacts of digitalisation and operational effectiveness on businesses were observed, which enhances the positive impact of e-commerce. The causal relationship between e-commerce, digitalisation, operational effectiveness and business success has received little attention in the literature, making this study even more relevant. The findings of this study reveal important managerial ramifications for companies, as they can inform investment decisions in e-commerce, driving digitalisation and operational efficiency, thereby improving corporate performance and adaptability in dynamic environments such as the current one.