AFTER MARKET ENTRY BARRIERS IN E-COMMERCE MARKETS

The goal of this research is to examine the relationships among the barriers after market entry and firm performance, and build a model of barriers in e-commerce markets using structural equation modeling. Despite the fact that many e-commerce businesses failed shortly after market entry, there is very little research about the causes of failures. This study utilizes 27 barriers faced by companies after they enter the e-commerce markets. The analyses indicate that there are significant relationships among the barriers and firm performance. The e-commerce resources construct impacts firm profitability while the sustainability construct influences e-commerce resources and the capital requirements barriers construct impacts sustainability. In addition, the sustainability barrier construct affects the competitive advantages of the rival firms construct positively.