A Quantitative Financial Impact Assessment of Digital Trade Platforms on Export Performance, Capital Efficiency, and Market Competitiveness

Abstract

This study examined the quantitative relationship between digital trade platform adoption and firm-level trade performance, operational efficiency, and financial outcomes within a digitally mediated cross-border trade context. Using a non-experimental, explanatory research design grounded in observational econometrics, the analysis integrated firm-level administrative trade records, financial statements, and structured survey data to assess how platform participation shaped export behavior under varying firm, sectoral, and destination-market conditions. The unit of analysis was the firm-year, and the final analytical sample consisted of exporting firms operating across multiple sectors with heterogeneous levels of digital engagement. The findings showed that firms participating in digital trade platforms demonstrated significantly higher export engagement compared with non-platform firms. Platform-active firms recorded, on average, a 22–28 percent higher export intensity and served approximately 1.6 more foreign destination markets than non-adopters. Export participation rates were also higher among platform users, with digitally active firms exhibiting export entry probabilities nearly 18 percent greater than firms relying solely on conventional channels. Operational efficiency indicators reflected moderate but consistent improvements, as platform adopters reported shorter average order-fulfillment cycles and lower order-processing variability relative to non-adopters. Financial performance results were more heterogeneous; while revenue growth rates were higher among platform-active firms by approximately 9–12 percent, profitability measures showed smaller and less uniform gains, with margin improvements concentrated among larger and more experienced exporters. The analysis further revealed pronounced heterogeneity across firm size, export experience, sector, and destination-market characteristics. Small and medium-sized enterprises experienced stronger extensive-margin gains in export participation, whereas larger firms captured more stable efficiency and financial benefits. Digitally compatible and standardized product sectors exhibited stronger platform-linked outcomes than highly regulated or logistics-intensive sectors. Destination-market conditions moderated results significantly, as firms exporting to markets with higher logistics reliability and digital payment penetration realized stronger performance effects than those targeting institutionally weaker destinations. Overall, the study concluded that digital trade platforms primarily functioned as access-enabling mechanisms that reshaped export participation and market reach, while realized efficiency and financial outcomes depended on complementary firm capabilities, sectoral suitability, and destination-market enabling conditions.