Financial Sustainability of Cross-Border E-Commerce of Small Medium Enterprises in Chongqing, China

• Published in: ASIA-PACIFIC MANAGEMENT ACCOUNTING JOURNAL
• Main Authors: Zhao Mingying; Wen Shunmin; Kamaluddin, Amrizah
• Format: Article
• Language: English
• Published: ASIA-PACIFIC MANAGEMENT ACCOUNTING ASSOC 2023
• Subjects: Business & Economics
• Online Access: https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001207732000014

Chongqing Province in China is a comprehensive pilot area for cross-border e-commerce. Although the government has issued several policies to promote cross-border e-commerce, the cycle of cross-border e-commerce in Chongqing is short, and the experience in various aspects is not yet mature. This study, based on resource-based theory, explores the factors that influence the financial sustainability of cross-border e-commerce in the face of COVID-19 from the perspective of small and medium-sized enterprises (SMEs) managers in Chongqing Province, China. The data were collected through a questionnaire survey to gauge whether government support, innovation, and the usage of e-commerce platforms have impacted the financial sustainability of cross-border e-commerce for Chinese SMEs. One hundred and fifty-seven sample data were analyzed according to correlation analysis, regression analysis, and hypothesis testing. The results indicate a significant relationship between government support, innovation, the usage of e-commerce platforms, and financial sustainability. This study confirms the importance of national policies for the financial sustainability of small and medium-sized cross-border e-commerce enterprises. The use of cross-border e-commerce platforms should improve their comprehensive service capabilities and supply chain management. Thus, it enhances financial sustainability. Also, it may promote China's cross-border e-commerce enterprises to play a greater role in foreign trade and achieve new growth in economic innovation and development.