E-commerce industry’s R&D, market operating and performance: Based on worldwide listed companies’ empirical analysis

Abstract

Based on the characteristics of the e-commerce industry, this paper proposes the conception of operating intensity and explores the relationships between R&D intensity, operating intensity and firms’ performance. Multiple regression analysis approach is adopted based on the unbalanced panel dataset of global e-commerce listed companies in 49 countries in 2001-2015. Our findings suggest that suitable R&D intensity contributes positively to e-commerce firms’ performance, and with a lag. Operating intensity contributes an inverted U shape to e-commerce firms’ performance. We also find that interaction between R&D and operating intensity’s effects on firms’ performance is positively significant in global samples. In Group 7 sample, R&D intensity contributes positively to e-commerce firms’ performance, but BRICS sample’s is negative. Operating intensity contributes positively to firms’ performance both in Group 7 sample and BRICS sample. Marginal utility of operating intensity on firms’ performance in Group 7 sample is bigger than in BRICS. The results imply that R&D investment of e-commerce listed companies in BRIC countries has not converted to benefit, however it drags down the firms’ performance.