Role of E-Commerce in Transforming Traditional Business Models

The proliferation of e-commerce technology has diminished market entry barriers, transformed customer expectations, and compelled established companies to reevaluate their value propositions and revenue models. Companies that include e-commerce into their strategy frequently reorganize channels, pricing, inventory management, and customer support, leading to significant alterations in their existing business models. E-commerce has become a significant catalyst transforming conventional business models across several industries by altering client accessibility, price transparency, operational procedures, and value delivery systems. This quantitative study (n = 198) examines the impact of e-commerce adoption on business-model transformation (BMT) via three mediating constructs: Digital Capability (DC), Customer Reach & Engagement (CRE), and Operational Efficiency (OE). Data were gathered using a standardized questionnaire employing a 5-point Likert scale. The analyses encompass reliability testing, exploratory factor analysis (EFA), correlation, multiple regression, bootstrapped mediation, and sectoral ANOVA. Simulated results indicate that e-commerce adoption has a positive correlation with BMT (? = 0.38, p < 0.001), with this relationship being largely mediated by DC and CRE. The practical ramifications for managers and policymakers are examined.