Transformation Toward Hybrid Models in E-Commerce: A Study of the Integration of Digital and Physical Channels and Its Impact on Financial Performance Efficiency and Institutional Sustainability

Abstract

This study aimed to analyze the impact of the transformation toward hybrid models in e-commerce on the integration of digital and physical channels and its reflection on financial performance efficiency and institutional sustainability within Iraqi institutions amid the rapid developments in the digital economy and contemporary business environment. The study adopted the descriptive analytical approach, and a questionnaire was used as the main data collection tool. The study sample consisted of (120) respondents from Iraqi commercial and service institutions in Baghdad, including employees in financial departments, marketing departments, information technology departments, and senior management. The findings revealed a high level of adoption of hybrid models and digital-physical channel integration among Iraqi institutions. The results also indicated a strong positive statistically significant correlation between transformation toward hybrid models and financial performance efficiency and institutional sustainability, with a correlation coefficient of (0.826). Furthermore, the simple regression analysis demonstrated a significant effect of hybrid models on improving financial performance and institutional sustainability, as hybrid models explained (68.2%) of the variance in financial performance and sustainability. The study recommended enhancing investment in digital infrastructure, developing administrative and financial information systems, and strengthening integration between digital and physical channels to improve institutional performance efficiency and achieve sustainability within Iraqi institutions.