THE IMPACT OF HUMAN CAPITAL, ORGANIZATIONAL CULTURE AND PRODUCT INNOVATION ON ENTREPRENEURIAL PERFORMANCE IN E-COMMERCE SMALL – MEDIUM ENTREPRISES

Abstract

This article highlights the significance of small and medium-sized enterprises (SMEs)
by showcasing their substantial influence. The COVID-19 epidemic has considerably
diminished the longevity of small and medium enterprises (SMEs), hence compromising their
viability. The success of SMEs is influenced by factors like institutions, technology, human
capital, and corporate culture. A balance between government support and SMEs expansion is
crucial for long-term economic stability, with China's e-commerce boom undergoing
acceleration, standardization, and globalization. For a corporation to achieve success, it is
crucial to have a strong organisational culture, valuable human capital, high employee
performance, and a focus on product innovation. For lasting competitive advantages, it is
crucial to have cultural cohesion, strong human capital, effective HRM practices, a focus on
organisational learning, and a commitment to innovation. Small and medium-sized enterprises
(SMEs) in China, encounter difficulties when it comes to carrying out innovation initiatives
because of their restricted resources, informal organisational frameworks, and limited financial
capacities. By using available resources and cultivating a culture that encourages creativity and
originality, small and medium-sized enterprises (SMEs) can not only succeed in highly
competitive markets but also position themselves as frontrunners in their respective industries.
The study reveals that human capital, organizational culture, product innovation, and employee
performance positively impact entrepreneurial performance in small and medium-sized e-
commerce, with employee performance mediating.