E-commerce enterprise flexibility leading to better customer perception

Abstract

This study aims to assess the level of organizational flexibility in e-commerce enterprises and to develop a structural model that identifies the key factors contributing to flexibility and their impact on customer service perception. The importance of customer perception in e-commerce is undeniable; however, the intra-organizational factors that contribute to it remain unclear. One such factor is flexibility, which has not yet been thoroughly researched. The survey was conducted on a random sample of 213 e-commerce companies of different sizes. The structural equation modelling (SEM) revealed that two factors significantly influence customer perception: assortment flexibility along with price and margin flexibility. Additionally, it was found that management's openness to change and the type of software utilized affect the degree of these flexibilities. This indicates that e-commerce companies should implement strategies to enhance flexibility in shaping their offerings to improve customers' perception of the services provided. It is recommended to foster management's openness to change in order to respond swiftly to evolving customer expectations. Furthermore, software functionalities that facilitate greater organizational flexibility are highly valued.