Determinants of firm performance among Malaysia smes in cross-border e-commerce

Lee, Yee Heng (2025) Determinants of firm performance among Malaysia smes in cross-border e-commerce. Final Year Project, UTAR.

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Abstract

With the rapid growth of cross-border e-commerce (CBEC) and the increasing participation of Malaysian small and medium-sized enterprises (SMEs) in digital international trade, understanding the factors that drive firm performance has become increasingly important. This study aims to examine the effects of firm-level capabilities on strategic and financial performance among Malaysian SMEs engaged in CBEC. Guided by the Resource-Based View and Dynamic Capabilities Theory, this study adopts the capability–performance framework proposed by Cassia and Magno (2022) to analyse the roles of information technology capabilities, international marketing apabilities, and export operations capabilities. In addition, the relationship between strategic performance and financial performance, as well as the moderating role of e-commerce platform type, are examined. To achieve the research objectives, a quantitative research approach was employed using a cross-sectional survey design. Data were collected through an online questionnaire distributed to Malaysian SMEs involved in cross-border e-commerce, and the data were analysed using Structural Equation Modelling (SEM) with SmartPLS softwarw. The findings indicate that all three firm capabilities have significant positive effects on both strategic and financial performance. Strategic performance was also found to positively influence financial performance. However, the moderating effects of e-commerce platform type were not supported. The findings contribute to the literature by extending the CBEC capability performance framework to the Malaysian SME context and provide practical insights for SMEs seeking to enhance their cross-border competitiveness. Keywords: cross-border e-commerce, Malaysian SMEs, firm capabilities, strategic performance, financial performance

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