Analyzing the Effects of E-Commerce on Enhancing Cross-Border trade in the Food and Beverage Processing Industry among Lusaka-Based SMEs

Small and Medium Enterprises (SMEs) are pivotal to Zambia’s economic development, contributing approximately 70% of GDP and providing over 80% of employment opportunities. Food and beverage processing SMEs play a key role in supporting agribusiness value chains and producing export-ready products. E-commerce presents these SMEs with opportunities to expand cross-border trade, reduce transaction costs, and improve operational efficiency. However, adoption is constrained by low digital literacy, unreliable internet connectivity, high costs of digital tools, and weak regulatory frameworks. This study evaluates how e-commerce adoption influences cross-border trade performance among Lusaka-based food and beverage processing SMEs. Specifically, it investigates the effect of e-commerce adoption on trade performance, key enablers facilitating effective use, major barriers hindering adoption, and the contribution of e-commerce platforms to trade growth and competitive advantage. A mixed-methods case study was conducted with 20 purposively selected SMEs engaged in cross-border trade. Structured questionnaires captured quantitative data analysed in SPSS, including hypothesis testing, while semi-structured interviews provided qualitative insights analysed thematically to identify enablers, barriers, and strategic considerations. Findings indicate that 95% of SMEs had formalized e-commerce policies, with 41–80% of transactions conducted online for most firms. All four alternative hypotheses (H₁–H₄) were accepted. H₁ confirmed that e-commerce adoption significantly improves cross-border trade performance (β = 0.48, p < 0.01). H₂ indicated that technological infrastructure, including reliable internet, affordable data, and trained staff, significantly enhances e-commerce utilization (β = 0.35, p < 0.05). H₃ demonstrated that barriers such as limited digital skills, high costs, and regulatory complexity negatively influence adoption (F = 7.12, p = 0.01). H₄ showed that e-commerce use significantly contributes to trade growth and enhances competitive advantage (factor loadings: policy comprehensiveness = 0.84; staff competency = 0.76). Key enablers included mentorship programs, platform partnerships, and supportive institutional policies, while major barriers encompassed cybersecurity risks, limited digital access, and complex customs procedures. Overall, the study concludes that e-commerce adoption is a critical driver of operational efficiency, market reach, and competitiveness among Lusaka-based food and beverage processing SMEs, with smaller firms facing greater adoption challenges due to infrastructural and financial constraints.