The Impact of Innovation, Performance, and E-Commerce Development in the Online Shop on Online Marketing: A Case Study in the Industry

Document Type : SI: DBBD-2023

Authors

1 Department of MBA, Varna University of Management & Cardiff Metropolitan University, Bulgaria

2 Department of Industrial Engineering, Lahijan Branch, Islamic Azad University, Lahijan, Iran

3 Department of Industrial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran

10.22059/ijms.2024.358619.675818

Abstract

Background and objective: Today, online business flows are considered one of the most important subjects of empirical studies. Therefore, investigating the influence of factors, such as innovation, organizational performance and e-commerce on online marketing will be extremely important in online marketing. For this purpose, a conceptual model has been presented to investigate the impact of innovation, performance, and e-commerce in the development of online shops, which has been conducted using structural equations modeling (SEM) and LISREL software. According to the research objective, the main contribution of the current study is developing a model that illustrate the effect of online marketing in providing an efficient framework for controlling the performance of companies. Then, we demonstrated that online marketing is important for companies, primarily in e-commerce, to face marketing challenges and gain a competitive advantage in the online environment.
Method: To examine and analyze the interrelationship among influencing factors, DIGIKALA Company, the largest online retail store in Iran, was determined as a case study. Subsequently, a sample of 178 managers of this company was selected for the survey. Then, statistical analyses based on t-test, p-value, and calculation of measurement errors, such as RMSEA, have been calculated for the effects of the factors. Findings: According to the results, the key components affecting the objective of the study were identified, and the final model was developed. According to the results, innovation, with a coefficient of 0.91, and performance, with a coefficient of 0.54, play  significant roles in online marketing. Nevertheless, e-commerce, with a coefficient of 0.28, doesn’t have a a significant effect on online marketing. Furthermore, using the path analysis model, their indirect effects on the dependent variable and the direct effects of influencing variables on the dependent variable were analyzed. Conclusion: Therefore, current research has a critical role in strategic decision-making for businesses operating in the digital landscape. Managers should recognize that fostering innovation, optimizing performance metrics, and continuously evolving e-commerce platforms are essential for staying competitive in the online market.

Keywords

Main Subjects

References

Abdul-Halim, H., Ahmad, N. H., Geare, A., & Thurasamy, R. (2019). Innovation culture in SMEs: The importance of organizational culture, organisational learning, and market orientation. Entrepreneurship Research Journal, 9(3). https://doi.org/10.1515/erj-2017-0014  
Agit, A. (2023). Online business development and contribution toward local economic in rural areas. Jurnal Penelitian Ekonomi dan Akuntansi (JPENSI), 8(1). https://doi.org/10.30736/jurnalpenelitianekonomidanakuntansi(jpensi).v8i1.1453
Ali, F. M., & Jaharadak, A. A. (2021). Intention quality model to improve the trust relationship between customers and SMEs for e-commerce implementation in Libya. International Journal of Advanced Research in Technology and Innovation, 3(4), 43-52.
AlQershi, N., Mokhtar, S. S. M., & Abas, Z. (2021). The relationship between strategic innovations, human capital, and performance: An empirical investigation. Sustainable Futures, 3, 100056. https://doi.org/10.1016/j.sftr.2021.100056
Awinja, N. N., & Fatoki, O. I. (2021). Effect of digital financial services on the growth of SMEs in Kenya. African Journal of Empirical Research, 2(1), 79-94. http://dx.doi.org/10.51867/ajer.v2i1.16
Ashoka, M. L., & Keihani, H. R. (2021). The relationship between macroeconomic factors and Indian stock market. The journal of contemporary issues in business and government, 27(5), 1306-1312.
Chen, C. L. (2019). Value creation by SMEs participating in global value chains under industry 4.0 trend: Case study of textile industry in Taiwan. Journal of Global Information Technology Management, 22(2), 120-145. https://doi.org/10.1080/1097198X.2019.1603512
Ďaďová, I., & Soviar, J. (2021). The application of online marketing tools in marketing communication of the entities with the tourism offer in 2020 in Slovakia. Transportation Research Procedia, 55, 1791-1799. https://doi.org/10.1016/j.trpro.2021.07.170
Dimitrova, T. (2021). Innovation performance of biotechnology firms in Bulgaria: Opportunities for enhancing. 684080133. http://doi.org/10.21272/mmi.2021.2-09
Ernawati, W. (2021). Optimization of digital-based MSME e-commerce: Challenges and opportunities in the new normal era of the Covid-19 pandemic. Social Science Journal for Advanced Research.
Glavas, C., Mathews, S., & Bianchi, C. (2017). International opportunity recognition as a critical component for leveraging Internet capabilities and international market performance. Journal of international entrepreneurship, 15(1), 1-35.
Gu, J. (2022). What drives SMEs to adopt e-commerce? The joint role of testosterone and absorptive capacity. Asia Pacific Journal of Marketing and Logistics. https://doi.org/10.1108/APJML-07-2021-0487
Hånell, S. M., Nordman, E. R., Tolstoy, D., & Özbek, N. (2019). It’sa new game out there: E-Commerce in internationalising retail SMEs. International Marketing Review, 37(3), 515-531. https://doi.org/10.1108/IMR-03-2018-0107
Khamaludin, K., Syam, S., Rismaningsih, F., Lusiani, L., Arlianti, L., Herlani, A., ... & Widiyatun, F. (2022). The influence of social media marketing, product innovation and market orientation on Indonesian SMEs marketing performance. International Journal of Data and Network Science, 6(1), 9-16.
Kurniawati, E., Siddiq, A., & Huda, I. (2020). E-commerce opportunities in the 4.0 era innovative entrepreneurship management development. Polish Journal of Management Studies, 21. http://dx.doi.org/10.17512/pjms.2020.21.1.15
Lanz, R., Lundquist, K., Mansio, G., Maurer, A., & Teh, R. (2018). E-commerce and developing country-SME participation in global value chains (No. ERSD-2018-13). WTO Staff Working Paper. https://doi.org/10.30875/ec5f0f21-en
Ashoka, M. L., & Keihani, H. R. (2020). Factors influencing the investors to invest in stock market. International Journal of Management (IJM), 11(1), 166-175.
Mawo, M. L., & Abdollah, A. A. (2021), Measuring the impacts of product development engineering in success of small and medium enterprises (SMES) in Kigali. International Journal of Mechanical Engineering, 6(2), 1-19.  https://doi.org/10.4025/actascitechnol.v40i1.35242
Mokhtar, S. S. M., Yusoff, R. Z., & Ahmad, A. (2014). Key elements of market orientation on Malaysian SMEs performance. International Journal of Business and Society, 15(1), 49.
Nozari, H., & Chobar, A. P. (2024). The Dimensions and Components of Marketing 5.0: Introduction to Marketing 6.0. In Advanced Businesses in Industry 6.0 (pp. 75-86). IGI Global. https://doi.org/10.4018/979-8-3693-3108-8.ch006
Nugroho, M. I. (2022). Global value chains participation to enhance export: Evidence from Indonesian apparel SMEs. Journal of Socioeconomics and Development, 5(1), 99-114. https://dx.doi.org/10.31328/jsed.v5i1.3499
Nunden, N., Abbana, S., Marimuthu, F., & Sentoo, N. (2022). An assessment of management skills on capital budgeting planning and practices: Evidence from the small and medium enterprise sector. Cogent Business & Management, 9(1), 2136481. https://doi.org/10.1080/23311975.2022.2136481
Putra, A. B. N. R., Winarno, A., Habibi, M. A., Insani, N., Foong, L. M., & Nidhom, A. M. (2020, September). The design of smart consultation based hybrid e-government system to increase citizen's awareness in vocational education. In 2020 4th International Conference on Vocational Education and Training (ICOVET) (pp. 372-377). IEEE. https://doi.org/10.1109/ICOVET50258.2020.9230190
Shaher, A. T. H. Q., & Ali, K. (2020). The effect of entrepreneurial orientation and knowledge management on innovation performance: The mediation role of market orientation. Management Science Letters, 10(15), 3723-3734.
Singtrangarn, A., Rattanapun, S., & Polachart, C. (2022). Impact of market orientation on competitiveness: Analysis of in vocational colleges in Thailand. Journal of Positive School Psychology, 6(2), 3045-3057.
Stocker, M., & Várkonyi, L. (2022). Impact of market orientation on competitiveness: Analysis of internationalised medium-sized and large enterprises. Entrepreneurial Business and Economics Review, 10(1), 81-95.
Su, M., Fang, M., Kim, J., & Park, K. S. (2022). Sustainable marketing innovation and consumption: Evidence from cold chain food online retail. Journal of Cleaner Production, 340, 130806. https://doi.org/10.1016/j.jclepro.2022.130806
Suhartini, S., Mahbubah, N. A., & Basjir, M. (2021). Marketing strategy design based on information technology in batik small and medium-sized enterprises in Indonesia. Eastern-European Journal of Enterprise Technologies, 6(13), 114.
Tajeddini, O., & Tajdini, J. (2023). Corporate entrepreneurship and its effect on business performance: Evidence from Digikala. In Global Trends in Technology Startup Project Development and Management: From Innovation to Startup Creation (pp. 119-126). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-40324-8_7
Vaseei, M., Agha, M. N. J., Abolghasemian, M., & Chobar, A. P. (2024). Investigating the role of transformative technologies and smart processes on sustainable business. In Building Smart and Sustainable Businesses with Transformative Technologies (pp. 38-51). IGI Global. https://doi.org/10.4018/979-8-3693-0210-1.ch003
Tolstoy, D., Nordman, E. R., Hånell, S. M., & Özbek, N. (2021). The development of international e-commerce in retail SMEs: An effectuation perspective. Journal of World Business, 56(3), 101165. https://doi.org/10.1016/j.jwb.2020.101165
Tolstoy, D., Nordman, E. R., & Vu, U. (2022). The indirect effect of online marketing capabilities on the international performance of e-commerce SMEs. International Business Review, 31(3), 101946. https://doi.org/10.1016/j.ibusrev.2021.101946Witek-Hajduk, M. K., Grudecka, A. M., & Napiórkowska, A. (2021). E-commerce in the internet-enabled foreign expansion of Polish fashion brands owned by SMEs. Journal of Fashion Marketing and Management: An International Journal, 26(1), 51-66. https://doi.org/10.1108/JFMM-10-2020-0225
Yahaya, H. D., & Nadarajah, G. (2023). Determining key factors influencing SMEs’ performance: A systematic literature review and experts’ verification. Cogent Business & Management, 10(3), 2251195. https://doi.org/10.1080/23311975.2023.2251195
Zandbiglari, K., Ameri, F., & Javadi, M. (2021, November 17). Capability language processing (CLP): Classification and ranking of manufacturing suppliers based on unstructured capability data. In International Design Engineering Technical Conferences and Computers and Information in Engineering Conference (Vol. 85376, p. V002T02A065). American Society of Mechanical Engineers. https://doi.org/10.1115/DETC2021-71308
Zhang, L., & Erturk, E. (2022). Potential lessons from Chinese businesses and platforms for online networking and marketing: An exploratory study. Social Sciences & Humanities Open, 6(1), 100274. https://doi.org/10.1080/23311975.2023.2251195
 
Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 18, Issue 1
January 2025
Pages 1-17

Files

Share

How to cite

Statistics