The impact mechanism of E-commerce on traditional enterprises

As a new business model, E-commerce, when applied in traditional enterprises, can change their input-output function, make technology an important driving force for the development of enterprises, enhance their competitiveness, and at the same time, promote other related enterprises to adopt E-commerce. This study also suggests that if applied in traditional enterprises, E-commerce is able to transform imperceptibly rather than explicitly both the coefficient of labor output elasticity and the coefficient of capital output elasticity of these traditional enterprises. Therefore, the utilization efficiency of resources is greatly enhanced and more can be produced with the same input. More output with the same input can save labor and capital, which can help enterprises expand their scale of production in new environments and overcome their scale restraints during their expansion process.