The Impact of E-Commerce Sales on Capacity Utilization

Abstract

This study aims to examine the relationship between e-commerce sales and capacity utilization in China, with process innovation being the mediator and product focus being the moderator. A mediated moderation model was developed and tested using data from 804 Chinese manufacturing firms as well as two-stage least squares regression analysis. The results reveal that the relationship between e-commerce sales and capacity utilization is negative; while process innovation mediates this relationship. Furthermore, product focus not only moderates the relationship between e-commerce sales and capacity utilization, but also moderates the relationship between process innovation and capacity utilization. These findings are useful for decision-makers when formulating e-commerce sales strategies and focusing on process innovation that will help them achieve higher capacity utilization. This paper contributes to existing research by validating process innovation as mediator and product focus as moderator between e-commerce sales and capacity utilization.