Title: Effect of E-commerce Adoption on Business Performance: A Case Study of Small and Medium Enterprises in Mbarara City
Authors: Dr Arinaitwe Julius
Volume: 9
Issue: 2
Pages: 25-30
Publication Date: 2025/02/28
Abstract:
This study investigated the impact of e-commerce adoption on business performance among small and medium enterprises (SMEs) in Mbarara City, Uganda. The research employed a quantitative approach, utilizing multiple linear regression and logistic regression analyses to assess the relationship between e-commerce adoption and business performance, focusing on revenue growth, cost reduction, customer acquisition, and operational efficiency. The data were collected through structured questionnaires administered to 150 SMEs in Mbarara City, with responses analyzed using SPSS and STATA. The findings revealed a significant positive relationship between e-commerce adoption and business performance. Specifically, revenue growth (? = 0.45, p < 0.01), cost reduction (? = 0.32, p < 0.05), and operational efficiency (? = 0.41, p < 0.01) were positively associated with e-commerce adoption. However, customer acquisition showed a moderate positive effect (? = 0.27, p < 0.05). The regression results confirmed that SMEs adopting e-commerce platforms experienced improved business performance, with notable improvements in profitability, cost management, and operational efficiency. The study concluded that e-commerce adoption significantly enhances business performance among SMEs by increasing revenue, reducing costs, and improving operational efficiency. Based on these findings, the study recommended that SMEs in Mbarara City invest in e-commerce platforms and digital tools to boost their business performance. Additionally, policymakers should offer incentives to facilitate the adoption of digital platforms and enhance infrastructure to support e-commerce growth.