Firm size and performance: A study on the use of electronic commerce by container transport operators in HongKong

Abstract

In this study, we examine the relationship between firm size and the use of electronic commerce (EC) by container transport operators in Hong Kong and their performance implications. Using data collected from a sample of container shipping operators in Hong Kong, we identified internal and external drivers that affect the use of EC by container transport operators. Our findings indicate that large firms tend to adopt EC at a higher level of sophistication. This study also investigates the relationship between the use of EC and firm performance. Our results show that sales growth is positively related to the use of EC and firm size. To understand how firm size affects firm performance, we use a structural equation model (SEM) to examine their structural relationships. Our findings indicate that firm size positively influences sales growth. On the other hand, sales growth affects the profitability of a firm. Although customer satisfaction does not have a direct impact on profitability, our SEM suggests that customer satisfaction is a significant variable that affects the sales growth of firms.