Abstract: | The rapid growth of Information and Communication Technology (ICT) presents a valuable opportunity for
startups to overcome budget limitations and compete in today's highly competitive business environment.
However, there is a lack of research on the impact of e-commerce applications on the operational
performance of startups, particularly in Ethiopia. This study aims to bridge this gap by examining the effect
of e-commerce applications on the operational performance of startups and providing recommendations for
improving their effectiveness. Data was collected from 61 startup businesses, focusing on the variables of
Adaption and Implementation of E-commerce, E-commerce Based Marketing, E-commerce Based
Advertising, E-commerce Based Order and Delivery, and the Operational Performance of startups.
Descriptive statistics were used to present the characteristics of the data, while correlation analysis and
regression analysis were conducted to examine the relationships between the independent variables and the
dependent variable. The findings revealed that there were significant positive correlations between the
variables of Adaption and Implementation of E-commerce, E-commerce Based Marketing, E-commerce
Based Advertising, E-commerce Based Order and Delivery, and the Operational Performance of startups.
Regression analysis further confirmed these relationships, indicating that the independent variables
collectively accounted for a substantial portion of the variance in the operational performance of startups.
Based on these findings, it is recommended that startups embrace e-commerce applications, invest in
adaptation and implementation, implement e-commerce marketing strategies, focus on e-commerce-based
advertising, streamline order and delivery processes, continuously monitor and improve performance, stay
updated with e-commerce trends, seek collaboration and partnerships, prioritize continuous learning and
skill development, and maintain a customer-centric approach. By following these recommendations, startups
can enhance their operational performance, increase their competitiveness, and capitalize on the benefits
offered by e-commerce applications. This study contributes to the understanding of how e-commerce can
affect the operational performance of startups and provides valuable insights for practitioners, policymakers,
and researchers in the field of e-commerce and entrepreneurship. |