The document summarizes a study presented at the ACME 2018 conference that analyzed the impact of strategy on new product development and performance for small businesses. The study examined how e-commerce sales, serving a wider geographic area, and new product sales related to various measures of business performance. The study found that increased new product sales and adopting e-commerce and expanding service areas were positively associated with improved business performance as perceived by business owners. The conclusions suggested further analysis of these strategies for different industries could provide more insights.

1. Impact of Strategy on New Product
Development and Performance:
Small Business Success
Denisse Olivas
Center for Hispanic Entrepreneurship
University of Texas at El Paso
ACME 2018 Conference
March 8th© 2018 CENTER FOR HISPANIC ENTREPRENEURSHIP. ALL RIGHTS RESERVED.

2. © 2018 CENTER FOR HISPANIC ENTREPRENEURSHIP. ALL RIGHTS RESERVED.
ABOUT THE CENTER
CFHE is a research entity within the College of Business
Administration (UTEP) whose mission is to generate
and disseminate innovative information on Hispanic
Entrepreneurship to further enhance economic
Development in the El Paso del Norte Region
“Creating knowledge, developing entrepreneurs,
and empowering the business community”
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3. To analyze current e-commerce and expansion efforts by
small business owners to improve the outcome of performance.
In addition, to look at the mediation of new project creation
and to test for ethnic and gender differences.
PURPOSE OF PAPER
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4. To analyze current e-commerce and expansion efforts by
small business owners to improve the outcome of performance.
In addition, to look at the mediation of new project creation
and to test for ethnic and gender differences.
© 2018 CENTER FOR HISPANIC ENTREPRENEURSHIP. ALL RIGHTS RESERVED. 3

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Previous Research
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• E-commerce:
• Role of area served:
• New products developed:
The role of e-commerce is now more
important as it helps expand companies’
reach to bigger audiences, to add new
markets, increase market share, and
profitability.
Companies will usually begin with the
implementation of e-commerce within their
own national markets before going
international, so analyzing the role that
internationalization plays in performance
improvement is also important.
Innovation has an important role in
economic growth, as it leads to new
products, services, enhanced quality, and
lower prices; it is the lifeblood of small
businesses as it helps them adapt in light of
new competitive environments.
Previous Research

7. HYPOTHESIS
© 2018 CENTER FOR HISPANIC ENTREPRENEURSHIP. ALL RIGHTS RESERVED.
There is a stronger
relationship of performance
and innovation in studies
framed as future
performance instead of past
performance.
This leaves a gap of
performance and innovation
in the present that we would
like to fill…

8. HYPOTHESIS
© 2018 CENTER FOR HISPANIC ENTREPRENEURSHIP. ALL RIGHTS RESERVED.
We decided to incorporate the current effects of % in e-commerce in relation to a company’s performance,
based on owners’ own assessment of degree of performance measured as:
1. Operating profits
2. Profits to sales ratio
3. Cash flow from operations
4. Return on investment
5. Return on assets
6. Cash flow
Variables such as serving a wider area and % of sales
of new products were added to the model.

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ACCORDINGTOTHE AFORMENTIONED CONSIDERATIONS,THE
FOLLOWING HYPOTHESIS WERE DEVELOPED:
Small business % of sales from e-commerce is positively related to % of sales
from new products and to performance.
Sales of new products positively mediate performance.
Serving a wider area (local, state, regional, national, international) is
positively related to % of sales from new products and performance.
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2
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Research Methodology
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TYPE OF
SAMPLE
WHO?
HOW?
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• CONVENIENCE
• QUALTRICS SURVEY
• 22 Local (El Paso business
owners)
• Business owners from all over
the U.S.
• Through surveys
• Through phone
• Through email
TYPE OF SAMPLE WHO?
HOW?
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13. Sample Profile
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14. ETHNICITY
Hispanic: 44.7%
Anglo: 40.6%
African American: 3.5%
American Indian: 2.5%
Asian American: 1.8%
Biracial: 4.7%
Other: 2.4%
GENDER
51.2% Females
48.8% Males
INDUSTRIES
Industries varies in
Art, Auto,
Consulting,
Childcare,
Construction,
Cosmetics,
entertainment,
Financial Services,
Food, Graphics,
Health, etc.
TYPE OF
BUSINESS
Most of the business
owners had only 1
business, and were
sole proprietorship.
INCOME
Most business
owners had a gross
annual income of
less than $100,000.
Most business
owners had
college or some
college under
their belt.
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15. FINDINGS
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16. Performance, as perceived by
the small business owner, is improved
by an increase in sales from new
products…
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17. Performance, as perceived by
the small business owner, is improved
by an increase in sales from new
products…
The percentage of sales
from e-commerce and a wider area served
which mediates the relationship
between strategies implemented
such as:
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18. Performance, as perceived by
the small business owner, is improved
by an increase in sales from new
products…
The percentage of sales
from e-commerce and a wider area served
EthnicityGender
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The adoption of both of these strategies
has shown to be beneficial in terms of performance
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INNOVATION MODEL
%
E-commerce
Area served
%
New Product
Performance
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20. Conclusions and Next Developments
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Conclusions and Next Developments
• A deeper study about the strategies such
as e-commerce and a wider area served
would be beneficial.
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Conclusions and Next Developments
• Focusing on one of the industries can
help to distinguish those that benefit
from these strategies more than
others.
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Conclusions and Next Developments
• Including more countries to compare the
similarities and differences of e-commerce
and area served would be more beneficial
than just limiting the study in the U.S.
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24. ANY QUESTIONS?
Denisse Olivas
dolivas@utep.edu
(915) 747-7738
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Designed by: Daniela De Anda

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