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E-Commerce and Market Access for Small United States of America
Manufacturers: Review of Digital Platform Integration and Growth
Outcomes
Samuel C. Arinzechi
1*
, Oluchukwu M. Unigwe
2
, Felix Onyedikachi
3
, Francis I. Dumbili
4
1
International Business School, Brandeis University Waltham, USA.
2
Department of Marketing, Heritage Polytechnic Eket Akwa Ibom, Nigeria.
3
Department of Global Business, Sejong University Seoul, South Korea.
4
Faculty Law, Business and Tourism, University of Sunderland, Sunderland, UK
*
Corresponding author
DOI: https://dx.doi.org/10.47772/IJRISS.2025.915EC00762
Received: 28 October 2025; Accepted: 03 November 2025; Published: 19 November 2025
ABSTRACT
E-commerce is transforming how small and medium-sized manufacturers (SMMs) in the United States access
markets and sustain competitiveness. Drawing on data from the U.S. Census Bureau, Annual Business Survey,
International Trade Administration, and Bureau of Labor Statistics, this review synthesizes evidence on digital
adoption trends, employment outcomes, and export performance. The findings reveal that while large
manufacturers still dominate online sales, digital adoption among small firms has accelerated, particularly after
the COVID-19 pandemic. Firms that adopt e-commerce experience faster revenue growth, stronger job creation
in logistics and IT, and higher export participation rates than offline peers. Yet, barriers persist for
microenterprises, including limited capital, digital skills shortages, and cyber-security concerns. Framed within
the Diffusion of Innovations, Ecosystem Dynamics, and Labor Market Transition theories, this study shows that
digital adoption is a systemic driver of inclusive industrial growth. Policy interventions should prioritize digital
infrastructure, workforce development, and export-support programs that integrate e-commerce into national
competitiveness strategies.
Keywords: Digital adoption; export participation; small and medium-sized enterprises; workforce
transportation; policy interventions; global value chains
INTRODUCTION
Digital trade and e-commerce have become central to modern manufacturing competitiveness. Once a niche
domain, online transactions now shape how firms coordinate production, reach customers, and participate in
global value chains. Retail e-commerce alone accounts for approximately 15% of total U.S. retail sales (U.S.
Census Bureau, 2025), while manufacturing “e-shipments” represent a growing share of overall transactions,
spanning both consumer and intermediate goods. For small and medium-sized enterprises (SMEs), digital
platforms have reduced traditional barriers to entry, such as high marketing costs, limited distribution networks,
and restricted export capacity. These tools allow smaller manufacturers to scale operations and compete globally
without proportional capital expansion. Yet, adoption remains uneven across industries and firm sizes (ITA,
2023; SBA, 2023). Persistent barriers include cyber-security risks, regulatory complexity, and inadequate digital
skills, particularly among micro-enterprises and rural manufacturers (Pew Research Center, 2024).
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Given these dynamics, this paper reviews empirical evidence on e-commerce adoption among small U.S.
manufacturers, evaluates its relationship to firm growth, employment, and export outcomes, and explores how
digital integration aligns with key economic theories. The goal is to inform both policy and practice on fostering
inclusive digital industrialization.
LITERATURE REVIEW
Digital Transformation and Theoretical Foundations
E-commerce adoption among SMEs aligns with three interrelated theories.
1. Diffusion of Innovations (Rogers, 2003): This explains how technologies spread through social and
organizational networks, shaped by perceived usefulness and compatibility.
2. Ecosystem Dynamics Theory: This emphasizes how digital platforms operate as interdependent
systems connecting producers, intermediaries, and consumers (Adner, 2017).
3. Labor Market Transition Theory: It highlights how technological shifts transform occupational
structures and skills demand (Autor and Salomons, 2018). Together, these frameworks contextualize the
mechanisms by which digital adoption affects SME competitiveness and resilience.
E-Commerce Growth in U.S. Manufacturing
Over the past decade, e-commerce sales across manufacturing have expanded sharply, reaching $3.9 trillion in
2019 and comprising 68% of total shipments (U.S. Census Bureau, 2022). However, adoption varies by
subsector: technology-intensive industries such as electronics and machinery lead the trend, while food and
wood products remain laggards due to perishability, cost, and logistics constraints.
SME Adoption and Barriers
Despite rapid expansion, small firms face persistent challenges in integrating digital tools. The SBA (2023) notes
that most SMEs have basic online presence but limited transactional capabilities. Barriers include financial
constraints, limited IT skills, and inadequate broadband infrastructure, particularly in rural regions. Addressing
these issues requires targeted support, such as digital literacy programs and cyber-security assistance.
Firm Performance, Employment, and Export Outcomes
Digital adoption correlates strongly with resilience and growth. During the pandemic, SMEs using digital
platforms showed faster recovery in revenues (Cong et al., 2021) and job stability in logistics and customer
service (Autor et al., 2022). Moreover, digitally active firms exhibit over double the export participation rate of
offline firms (ITA, 2023). However, benefits depend on how technology is integrated, firms combining
ecommerce with innovation, analytics, and supply-chain modernization achieve the greatest gains (Nguyen et
al., 2021).
Methods and Data Sources
This study synthesizes secondary data from:
1. U.S. Census Bureau (E-Stats, ABS) for e-commerce adoption and shipment trends.
2. Bureau of Labor Statistics (OEWS, LEHD) for employment shifts.
3. International Trade Administration (ITA) for SME export performance.
4. SBA and Pew Research Center reports for SME digital readiness and barriers.
A comparative synthesis approach integrates quantitative and qualitative evidence to identify cross-sectoral
patterns in adoption, employment, and trade.
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Limitations and Future Research.
Though this study synthesizes multiple administrative and survey datasets, limitations include potential
underreporting of micro-scale digital transactions and the absence of granular data on firm-level digital
capabilities. Future research could explore causal mechanisms linking specific digital strategies to employment
growth and export performance, as well as the role of complementary policies, such as fintech solutions and
logistics support, in facilitating SME digital transformation.
RESULTS
This section presents synthesized findings from Census E-Stats reports, ABS microdata, ITA export statistics,
BLS employment trends, and supplementary industry studies. The results are organized into four main domains:
adoption rates, growth of e-commerce sales, employment effects, and export performance.
E-Commerce Adoption by Manufacturing Subsectors
Table 1 presents a comparative overview of e-commerce adoption among small manufacturing enterprises
(SMEs) in the United States across eight NAICS subsectors, contrasting data from 2010 and 2022. The table
reveals a substantial increase in both SME adoption rates and the e-commerce share of shipments over the 12year
period, highlighting the growing centrality of digital platforms in small-scale manufacturing. Among the
subsectors, Computer and Electronics (334) exhibits the highest e-commerce engagement, with SME adoption
rising from 25% in 2010 to 43.2% in 2022, and e-commerce shipments increasing from 28% to 48.5%. This
trend underscores the sector’s inherent compatibility with digital channels, likely driven by a technology-savvy
customer base and the feasibility of remote sales. In addition, chemicals (325) show significant growth, with
adoption increasing from 20% to 38% and e-commerce shipments nearly doubling from 10% to 18.2%. On the
other hand, Wood Products (321) and Food (311) demonstrate more modest increases, suggesting potential
structural or logistical barriers limiting full e-commerce integration in these sectors. In all, the data indicate that
small manufacturers across all sectors are increasingly leveraging e-commerce to expand market access, improve
operational efficiency, and enhance competitiveness. The upward trajectory from 2010 to 2022 reflects broader
digital transformation trends in U.S. manufacturing, emphasizing the need for targeted policy interventions and
digital infrastructure support to enable lagging subsectors to catch up.
Table 1: Comparative U.S. Small Manufacturer E-Commerce Participation Rates by NAICS Subsector
(2010 vs. 2022)
NAICS Subsector
SME Adoption
Rate (%)
E-Commerce Share
of Shipments (%)
SME Adoption
Rate (%)
E-Commerce Share
of Shipments (%)
2010
2010
2022
2022
Machinery (333)
15.0
18.0
29.5
33.0
Plastics and Rubber
(326)
12.0
14.0
24.8
29.0
Food (311)
5.0
6.0
11.5
13.8
Computer and
Electronics (334)
25.0
28.0
43.2
48.5
Wood Products (321)
4.0
5.0
10.0
12.5
Chemicals (325)
20.0
10.0
38.0
18.2
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Apparel (315)
12.0
14.0
22.3
26.4
Misc. Manufacturing
(339)
10.0
12.0
20.0
24.3
Source: U.S. Census Bureau, E-Stats (2010, 2021); ABS SME tabulations, 2022.
Growth of E-Commerce Sales in SMEs versus Large Firms
Figure 1 demonstrates the evolving share of e-commerce sales among small and large manufacturers in the
United States between 2010 and 2022. Large firms maintained higher overall e-commerce adoption throughout
the period. That said, small and medium-sized enterprises (SMEs) showed significantly faster growth, from just
5.8% in 2010 to 18.4% by 2022, while large firms increased from 9.4% to 23.7%. This narrowing divide indicates
that digital platforms are becoming far more accessible to smaller manufacturers, facilitating market expansion
and diversification through online channels. The steep rise for SMEs after 2020 points to bigger shifts:
accelerated supply chain changes and a surge in digital transformation brought on by the COVID-19 pandemic.
As a result, digital tools increasingly serve as equalizers, offering smaller firms improved access to broader
markets.
Figure1: Growth of E-Commerce Sales as a Share of Shipments among Small and Large U.S. Manufacturers,
2010–2022
Source: U.S. Census Bureau, E-Stats Reports (2010–2021) and Annual Business Survey (ABS), 2022.
Employment Effects of E-Commerce Adoption
Table 2 depicts clear differences in employment dynamics between e-commerce engaged and non-engaged U.S.
small and medium-sized enterprises (SMEs) from 2010 to 2022. Non-engaged SMEs exhibited consistently
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modest growth, averaging less than 0.3% annually prior to 2020 and experiencing a sharp contraction (–2.0%)
during the pandemic. Although these firms rebounded in 2021, their cumulative job growth remained subdued.
By contrast, e-commerce engaged SMEs demonstrated sustained resilience and expansion, averaging over 1%
annual employment growth, with notable gains in logistics, IT support, and customer service roles. Even during
the 2020 downturn, digitally active SMEs continued to expand, underscoring the stabilizing role of digital
integration in mitigating external shocks. By 2022, employment growth among engaged SMEs was more than
triple that of offline counterparts, reinforcing evidence that digital adoption enhances labor demand, occupational
diversification, and long-term competitiveness in U.S. manufacturing and service-linked sectors.
Table 2: Employment Changes in SMEs by E-Commerce Engagement Status, United States, 2010–2022
Year
Non-Engaged SMEs — Employment
growth (annual, est. %)
E-Commerce Engaged SMEs — Employment
growth (annual, est. %)
2010
0.4
0.9
2011
0.3
1.0
2012
0.3
1.0
2013
0.2
1.1
2014
0.2
1.1
2015
0.3
1.0
2016
0.2
1.1
2017
0.1
1.2
2018
0.2
1.3
2019
0.3
1.4
2020
−2.0
1.5
2021
2.5
2.2
2022
0.5
1.0
Source: U.S. Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics (OEWS);
Longitudinal Employer–Household Dynamics (LEHD); International Trade Administration (ITA) SME Data;
author’s synthesis.
Export Performance of Digital Platform Users
Figure 2 reveals that U.S. small and medium-sized manufacturers that embraced digital strategies pulled way
ahead in export participation compared to their offline counterparts between 2010 and 2022. The data shows
digitally engaged SMEs nearly doubled their export rates, from 28% up to 57%, while offline firms barely
budged, hovering between 12% and 17%. This widening gap isn’t just a fluke; it highlights how crucial digital
adoption has become for U.S. manufacturing competitiveness. E-commerce platforms and digital tools don’t just
lower transaction hassles, they actually let SMEs boost their international visibility and reach more markets. By
2022, digitally active firms were over three times as likely to export. Digital integration isn’t just a trendy addon
anymore; it’s become pretty much essential for any SME aiming for sustainable export growth.
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Figure2: Export Share of Digitally Active vs. Offline U.S. Small and Medium-Sized Manufacturers,
2010– 2022
Source: International Trade Administration (ITA), Small and Medium-Sized Enterprise Export Data, 2022.
Conceptual Framework Linking Digital Adoption, Innovation, and Competitiveness
Figure 3 illustrates the theoretical pathways through which digital platform integration enhances the
competitiveness of small and medium-sized U.S. manufacturers. The framework positions digital platform
integration as the foundational input that drives e-commerce adoption, serving as both a technological and
strategic enabler of market participation. Once firms adopt e-commerce systems, three key outcomes emerge:
market access expansion, employment growth, and export participation. The first linkage, from digital platform
integration to e-commerce adoption, reflects the Diffusion of Innovations Theory (Rogers, 2003), emphasizing
how the perceived relative advantage and compatibility of digital technologies influence adoption behavior
among small manufacturers. The subsequent pathways from e-commerce adoption to market access,
employment, and exports align with Ecosystem Dynamics Theory (Adner, 2017), which underscores how digital
platforms create interconnected networks that generate new value opportunities through customer reach,
supplychain collaboration, and data-driven efficiency.
The outcomes of employment growth and export participation connect to Labor Market Transition Theory (Autor
and Salomons, 2018), highlighting the structural reallocation of labor toward digital, logistics, and
serviceoriented occupations. Collectively, the framework conceptualizes e-commerce not merely as a
transactional tool but as a transformative mechanism that links technological adoption to industrial
competitiveness, inclusive job creation, and sustainable economic growth.
Figure3: Conceptual Framework Linking Digital Adoption, Innovation, and Competitiveness
Source: Author’s conceptual synthesis based on Diffusion of Innovations Theory (Rogers, 2003), Ecosystem
Dynamics Theory (Adner, 2017), and Labor Market Transition Theory (Autor and Salomons, 2018).
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DISCUSSION
This study examined the integration of digital platforms and e-commerce adoption among U.S. small
manufacturing enterprises (SMEs) from 2010 to 2022, with a focus on market access, employment dynamics,
and export performance. The findings demonstrate that SMEs have progressively embraced digital tools to
expand operational capacity, diversify revenue streams, and enhance competitiveness in a rapidly evolving
manufacturing landscape.
Adoption of E-commerce and Sectoral Trends.
The comparative analysis of e-commerce adoption by NAICS subsector (Table 1) highlights substantial growth
in both SME adoption rates and the e-commerce share of shipments. Computer & Electronics (334) firms led
the transition, reflecting their digital-native products and established online demand, with adoption rising from
25% in 2010 to 43.2% in 2022. Chemicals (325) and Machinery (333) also exhibited notable increases,
suggesting that even capital-intensive and traditional sectors can benefit from digital integration when
appropriate logistics, supply chain, and marketing support exist. Conversely, Food (311) and Wood Products
(321) recorded more modest growth, indicating persistent structural or logistical barriers such as perishability,
transportation costs, and supply chain complexity that hinder full e-commerce integration. These findings align
with prior studies suggesting that sector-specific characteristics strongly influence the pace and scale of digital
adoption among SMEs (Bartik et al., 2020; Brynjolfsson et al., 2019).
Digital Platforms as Drivers of Growth
The growth trajectory of e-commerce sales among SMEs (Figure 1) illustrates the narrowing gap between small
and large manufacturers. While large firms maintained higher baseline adoption rates, SMEs experienced more
rapid relative growth, particularly post-2020. This acceleration reflects broader structural shifts in the business
environment, including pandemic-induced digitization, increased consumer preference for online purchasing,
and heightened supply chain vulnerabilities. The steep rise in SME adoption after 2020 underscores how crises
can catalyze digital transformation, serving as both a coping mechanism and a long-term strategic opportunity.
These patterns suggest that digital platforms function as growth multipliers, enabling SMEs to overcome
traditional market access limitations and achieve economies of scale previously restricted to larger competitors.
Employment Implications
Analysis of employment trends (Table 2) reveals that e-commerce-engaged SMEs exhibited sustained job
growth, even during the 2020 pandemic downturn, while non-engaged firms faced significant employment
contraction. The differential impact suggests that digital adoption not only supports revenue growth but also
strengthens labor resilience. Specifically, employment gains were concentrated in logistics, IT support, and
customer service roles, reflecting the shift from traditional manufacturing tasks to digitally enabled,
servicelinked functions. These findings reinforce the broader literature on digital adoption and labor dynamics,
which indicate that SMEs leveraging technology can generate new occupational opportunities, enhance
workforce skill diversity, and mitigate external economic shocks (Autor et al., 2020; Manyika et al., 2017).
Export Performance and Global Market Access.
The analysis of export engagement (Figure 2) provides compelling evidence that e-commerce adoption
significantly enhances SMEs’ international competitiveness. Digitally engaged SMEs nearly doubled their
export participation from 28% in 2010 to 57% in 2022, whereas offline counterparts exhibited minimal change.
This widening gap demonstrates the capacity of digital platforms to reduce entry barriers, lower transaction
costs, and amplify international visibility. It also suggests that digital tools function as essential instruments for
market diversification, enabling SMEs to leverage global demand and mitigate reliance on domestic markets.
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The findings corroborate prior studies emphasizing that digitalization is increasingly a prerequisite for SME
competitiveness in international trade (World Bank, 2021; ITA, 2022).
Policy and Managerial Implications.
The overall upward trajectory in e-commerce adoption highlights the need for targeted policy interventions to
support lagging subsectors and reinforce SME competitiveness. Investment in digital infrastructure, training
programs, and sector-specific e-commerce platforms can enable SMEs in sectors such as Food and Wood
Products to overcome structural barriers. From a managerial perspective, firms should prioritize integrating
digital sales channels, leveraging data analytics, and enhancing online customer engagement to capture market
opportunities and buffer against external shocks.
The findings reaffirm the transformative potential of digital adoption for small manufacturers but also expose
persistent inequalities in capacity and outcomes. Diffusion of Innovations explains uneven adoption patterns:
firms with greater perceived advantage, leadership commitment, and infrastructure are early adopters.
Ecosystem Dynamics theory helps contextualize the network effects of platforms that connect SMEs to
customers and suppliers, amplifying value creation through shared logistics and data analytics. Meanwhile,
Labor Market Transition theory clarifies why job creation in digitally active firms skews toward tech-enabled
occupations, reshaping workforce composition rather than simply increasing employment totals. The analysis,
through the integration of these theoretical lenses, reveals that e-commerce does more than facilitate transactions,
it restructures the very ecosystem of production, innovation, and employment. However, reliance on secondary
data limits causal inference. Future studies using firm-level longitudinal data or mixed-method approaches could
test the mechanisms more robustly.
CONCLUSION AND POLICY IMPLICATION
E-commerce adoption has become a structural determinant of competitiveness for small U.S. manufacturers.
Digitally active firms grow faster, employ more resilient workforces, and access export markets more effectively
than offline peers. Yet digital transformation remains uneven, constrained by capital shortages, cyber-security
concerns, and regional disparities.
In view of the findings from this study, it is therefore recommended that there is need for:
1. Digital inclusion in order to expand broadband access and infrastructure in underserved regions.
2. Workforce up-skilling so as to integrate digital and data literacy into SME support programs.
3. Targeted incentives to offer sector-specific grants or tax credits to stimulate e-commerce integration in
lagging industries.
4. Cyber-Security and Trust Frameworks to strengthen SME compliance support and consumer protection.
5. Digital-Export Synergy to embed e-commerce tools within federal and state export promotion initiatives.
In addition, by situating digital adoption within innovation diffusion and ecosystem frameworks, this paper
contributes a conceptual model linking platform participation to competitiveness and policy outcomes.
Furthermore, it contributes by synthesizing recent federal datasets and applying theoretical integration to explain
how and why digital platforms transform SME performance. It bridges the empirical-policy gap, providing a
model that links micro-level adoption behavior with macro-level competitiveness outcomes.
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