LITERATURE REVIEW ON THE ROLE OF E-COMMERCE IN CORPORATE PERFORMANCE IN THE DIGITAL ECONOMY ERA

Abstract

The development of digital technology, particularly in the economic sector, has brought significant changes for companies in conducting business. The digital economy has emerged as a response to the Fourth Industrial Revolution (Industry 4.0). One of the digital economy sectors that has experienced rapid growth is e-commerce. E-commerce offers vast opportunities for companies to expand markets, improve operational efficiency, and enhance financial performance. This study aims to examine the impact of e-commerce on company performance in the digital era through a literature review method. The study analyzes various previous researches on e-commerce and its impact on company performance, as well as identifying knowledge gaps that require further exploration. The findings indicate that, while e-commerce can enhance company performance, its optimal utilization heavily depends on the level of knowledge and skills of business operators in managing e-commerce platforms, as well as sufficient support in terms of training and mentorship. This study also highlights challenges faced, such as the lack of clear regulations regarding e-commerce transactions and issues concerning privacy and security in the digital space. Therefore, to maximize the potential of e-commerce, it is crucial for companies to develop internal capacities, utilize technology effectively, and support relevant policies and regulations.