E-Commerce Capability and Performance of Indigenous Businesses in Anambra State, Nigeria

Abstract

This study examined the relationship between e-commerce capability and the business performance of indigenous businesses in Anambra State, Nigeria, with particular focus on digital marketing capability, electronic payment system capability, and online customer engagement capability. The study adopted a descriptive survey research design using a quantitative approach. A stratified sampling technique was used to select 341 indigenous businesses from Onitsha, Nnewi, and Awka. Data were collected through structured questionnaires, and business performance was measured using respondents' perceptions of sales growth, customer satisfaction, operational efficiency, and competitiveness. Descriptive statistics and multiple regression analysis were performed using SPSS. The findings showed that digital marketing capability (β = 0.338, p < 0.001), electronic payment system capability (β = 0.291, p < 0.001), and online customer engagement capability (β = 0.254, p < 0.001) were positively and significantly associated with business performance. Based on the standardised beta coefficients, digital marketing capability had the strongest association with business performance, followed by electronic payment system capability and online customer engagement capability. The study concludes that stronger e-commerce capability is associated with higher perceived business performance among indigenous businesses in Anambra State. The study recommends greater investment in digital marketing, electronic payment systems, customer engagement platforms, and digital entrepreneurship training to improve business performance.