The Influence of Corporate Governance on E-Commerce Company Performance in the Artificial Intelligence Era: JEL Classification: G34, L81, O33, M15, D22

John Mathew Reyes; Maria Angla Cruz

doi:10.37899/mjde.v3i2.357

Authors

John Mathew Reyes Ramon V. del Rosario College of Business, De La Salle University, Philippines
Maria Angla Cruz John Mathew Reyes, Maria Angla Cruz 2 Ramon V. del Rosario College of Business, De La Salle University, Philippines

DOI:

https://doi.org/10.37899/mjde.v3i2.357

Keywords:

Artificial Intelligence, Company Performance, Corporate Governance, Digital Economy, E-Commerce

Abstract

This study investigates the influence of corporate governance on the performance of e-commerce companies in the Philippines in the era of Artificial Intelligence (AI). The rapid development of AI technologies has transformed digital business operations, increasing the importance of governance mechanisms in ensuring organizational effectiveness, accountability, and competitiveness. This research employed a quantitative explanatory approach using survey data collected from managers and executives working in Philippine e-commerce companies. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings reveal that corporate governance has a positive and significant effect on company performance. Governance dimensions such as transparency, accountability, board effectiveness, risk management, and stakeholder protection were found to contribute substantially to operational efficiency, innovation capability, financial growth, and competitive advantage. The study also demonstrates that governance quality plays an important role in supporting organizational adaptability within AI-driven business environments. The research contributes theoretically to governance and digital transformation literature while providing practical implications for managers and policymakers seeking to strengthen governance frameworks and organizational sustainability in the digital era.

References

Akter, S., Akhter, S. R., Rahman, M. B., & Naidu, P. (2025). AI-driven business analytics for competitive advantage in service-oriented enterprises: CUSTOMER experience and efficiency. International Journal of Business and Economics Insights, 5(3), 389-423. https://doi.org/10.63125/mx0k6019

Alonge, E. O., Dudu, O. F., & Alao, O. B. (2024). The impact of digital transformation on financial reporting and accountability in emerging markets. International Journal of Science and Technology Research Archive, 7(2), 025-049. https://doi.org/10.53771/ijstra.2024.7.2.0061

Anozie, U. C., Onyenahazi, O. B., Ekeocha, P. C., Adekola, A. D., Ukadike, C. A., & Oloko, O. A. (2024). Advancements in artificial intelligence for omnichannel marketing and customer service: Enhancing predictive analytics, automation, and operational efficiency. International Journal of Science and Research Archive, 12(2), 1621-1629. https://doi.org/10.30574/ijsra.2024.12.2.1436

Ashrafuzzaman Hera, A. A. R., Faruque, M. O., Sizan, M. M. H., Nure Alam Khan, M. A. R., & Ali, M. J. (2024). Leveraging information systems for strategic management: Enhancing decision-making and organizational performance. American Journal of Industrial and Business Management, 14, 1045-1061. https://doi.org/10.4236/ajibm.2024.148054

Banda, M. (2023). Corporate governance: A conceptual analysis. Corporate Governance, 14(17), 156. https://doi.org/10.7176/RJFA/14-17-05

Chen, X., Liu, W., Geng, C., Wang, X., & Zhang, Y. (2026). Can artificial intelligence enhance corporate resilience? Empirical evidence from China's A-share listed firms. Pacific-Basin Finance Journal, 103112. https://doi.org/10.1016/j.pacfin.2026.103112

Chinnadurai, A. S. (2023). Digital transformation in local governance: Opportunities, challenges and strategies. International Journal of Social Science, Educational, Economics, Agriculture Research, and Technology (IJSET). https://doi.org/10.54443/ijset.v3i1.304

Chowdhury, R. H. (2024). The evolution of business operations: unleashing the potential of Artificial Intelligence, Machine Learning, and Blockchain. World Journal of Advanced Research and Reviews, 22(3), 2135-2147. https://doi.org/10.30574/wjarr.2024.22.3.1992

Chowdhury, T. E. C. T. E., Chowdhury, R. C. R., Rahman, M. M. R. M. M., & Sunny, A. R. S. A. R. (2022). From crisis to opportunity: How COVID-19 accelerated the global shift to online business. Pathfinder of Research, 3(1), 18-18. https://doi.org/10.69937/pf.por.3.1.34

Efunniyi, C. P., Abhulimen, A. O., Obiki-Osafiele, A. N., Osundare, O. S., Agu, E. E., & Adeniran, I. A. (2024). Strengthening corporate governance and financial compliance: Enhancing accountability and transparency. Finance & Accounting Research Journal, 6(8), 1597-1616. https://doi.org/10.51594/farj.v6i8.1509

Gavrila Gavrila, S., & De Lucas Ancillo, A. (2022). Entrepreneurship, innovation, digitization and digital transformation toward a sustainable growth within the pandemic environment. International Journal of Entrepreneurial Behavior & Research, 28(1), 45-66. https://doi.org/10.1108/IJEBR-05-2021-0395

Goloshchapova, T., Yamashev, V., Skornichenko, N., & Strielkowski, W. (2023). E-Government as a key to the economic prosperity and sustainable development in the Post-Covid Era. Economies, 11(4), 112. https://doi.org/10.3390/economies11040112

Gunasilan, U. (2024). Digital transformation technologies reshaping financial reporting, transparency, and accountability in public sector organizations. Accountancy Business and the Public Interest, 40(7). https://doi.org/10.4018/979-8-3693-9251-5.ch007

Habbal, A., Ali, M. K., & Abuzaraida, M. A. (2024). Artificial Intelligence Trust, risk and security management (AI trism): Frameworks, applications, challenges and future research directions. Expert Systems with Applications, 240, 122442. https://doi.org/10.1016/j.eswa.2023.122442

Heredia, J., Castillo-Vergara, M., Geldes, C., Gamarra, F. M. C., Flores, A., & Heredia, W. (2022). How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal”. Journal of innovation & knowledge, 7(2), 100171. https://doi.org/10.1016/j.jik.2022.100171

Husnah, H., Aryati, A., Ramlawati, R., & Fahlevi, M. (2023). The relationship between corporate governance and firm performance: An empirical analysis of Indonesian companies. Journal of Economics and Business Letters, 3(3), 49-52. https://doi.org/10.55942/jebl.v3i3.224

Ingale, A. (2024). IT governance: Navigating the digital transformation era. IT governance, digital transformation, large-scale data analytics, cloud computing. https://doi.org/10.2139/ssrn.5028361

Kalkan, G. (2024). The impact of artificial intelligence on corporate governance. Корпоративные финансы, 18(2), 17-25. https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.17-25

Latupeirissa, J. J. P., Dewi, N. L. Y., Prayana, I. K. R., Srikandi, M. B., Ramadiansyah, S. A., & Pramana, I. B. G. A. Y. (2024). Transforming public service delivery: A comprehensive review of digitization initiatives. Sustainability, 16(7), 2818. https://doi.org/10.3390/su16072818

Lee, M. J., Pak, A., & Roh, T. (2024). The interplay of institutional pressures, digitalization capability, environmental, social, and governance strategy, and triple bottom line performance: A moderated mediation model. Business Strategy and the Environment, 33(6), 5247-5268. https://doi.org/10.1002/bse.3755

Mahabub, S., Hossain, M. R., & Snigdha, E. Z. (2025). Data-driven decision-making and strategic leadership: AI-powered business operations for competitive advantage and sustainable growth. Journal of Computer Science and Technology Studies, 7(1), 326-336. https://doi.org/10.32996/jcsts.2025.7.1.24

Maheshwari, N., Mohan, G., & Mishra, D. (2025). Digital transformation in governance: Preconditions for achieving good governance. Public Policy and Administration, 09520767251355715. https://doi.org/10.1177/09520767251355715

Mgbemena, I. C., Nwosu, C. K., Egbunike, C. F., Chude, D. I., & Okafor, K. J. (2025). The Role of Artificial Intelligence (AI) in Enhancing Corporate Governance within Enterprises. Journal of Comprehensive Business Administration Research. https://doi.org/10.47852/bonviewJCBAR52023392

Mismiwati, M. (2025). The influence of ownership structure on GCG effectiveness and its implications for financial performance. Oikonomia: Journal of Management Economics and Accounting, 2(4), 58-66. https://doi.org/10.61942/oikonomia.v2i4.412

Mohammed, I. A., & Madhumithaa, N. (2024). Transforming Decision-Making: The Impact of AI and Machine Learning on Strategic Business Operations. Library of Progress-Library Science, Information Technology & Computer, 44(3).

Nadji, M. S. E., & Belfatmi, S. (2025). Optimizing public financial management through digitalization and e-governance in Algeria. Revue Algerienne de Finances Publiques, 15(1), 77-91.

Nalini, R. (2024). Transformative power of artificial Intelligence in decision-making, automation, and customer engagement. In Complex AI dynamics and interactions in management (pp. 189-208). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3693-0712-0.ch009

Nikolić, T. S. M., Perčić, K. R., & Nećak, M. D. (2022). MSMES need to change the game in challenging times such as covid-19 crisis: Changes in consumer behavior habits. Teme, 215-234. https://doi.org/10.22190/TEME201122012M

Olan, F., Arakpogun, E. O., Suklan, J., Nakpodia, F., Damij, N., & Jayawickrama, U. (2022). Artificial intelligence and knowledge sharing: Contributing factors to organizational performance. Journal of Business Research, 145, 605-615. https://doi.org/10.1016/j.jbusres.2022.03.008

Oyekunle, D., & Boohene, D. (2024). Digital transformation potential: The role of artificial intelligence in business. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 9(3), 1. https://doi.org/10.26668/businessreview/2024.v9i3.4499

Raisch, S., & Krakowski, S. (2021). Artificial intelligence and management: The automation–augmentation paradox. Academy of management review, 46(1), 192-210. https://doi.org/10.5465/2018.0072

Rane, N. L., Paramesha, M., Choudhary, S. P., & Rane, J. (2024). Artificial intelligence, machine learning, and deep learning for advanced business strategies: a review. Partners Universal International Innovation Journal, 2(3), 147-171. https://doi.org/10.5281/zenodo.12208298

Sari, R. (2023). Enhancing corporate governance through effective oversight and accountability. Advances: Jurnal Ekonomi & Bisnis, 1(6), 344-356. https://doi.org/10.60079/ajeb.v1i6.291

Sepulveda-Nuñez, M. D. D. C., Fong Reynoso, C., & Llamosas-Rosas, I. (2025). Board of directors effect on environmental, social and governance performance in publicly traded non-financial firms. Corporate Governance: The International Journal of Business in Society, 25(2), 211-228. https://doi.org/10.1108/CG-09-2023-0409

Shenkoya, T. (2023). Can digital transformation improve transparency and accountability of public governance in Nigeria?. Transforming Government: People, Process and Policy, 17(1), 54-71. https://doi.org/10.1108/TG-08-2022-0115

Spring, M., Faulconbridge, J., & Sarwar, A. (2022). How information technology automates and augments processes: Insights from Artificial‐Intelligence‐based systems in professional service operations. Journal of Operations Management, 68(6-7), 592-618. https://doi.org/10.1002/joom.1215

Stanikzai, M. E., & Mittal, E. (2025). Strategic alignment of organizational structure based on decisions for sustainable organizational performance: a bibliometric-systematic literature review. Cogent Business & Management, 12(1), 2560650. https://doi.org/10.1080/23311975.2025.2560650

Subhashree, M. S. (2023). AI in marketing: The transformation of customer engagement strategies. Journal of the Asiatic society of Mumbai, 15(3), 567-589.

Suwarno, S., Fitria, F., & Azhar, R. (2023). Optimizing budget allocation: A strategic framework for aligning human resource investments with financial objectives and business goals. Atestasi: Jurnal Ilmiah Akuntansi, 6(2), 835-855. https://doi.org/10.57178/atestasi.v6i2.880

Suzan, L., & Ardiansyah, D. (2023). Good corporate governance, intellectual capital, and operational efficiency: Affect company value. Jurnal Akademi Akuntansi, 6(2), 294-311. https://doi.org/10.22219/jaa.v6i2.27101

Talab, H. R., & Flayyih, H. H. (2023). An empirical study to measure the impact of information technology governance under the control objectives for information and related technologies on financial performance. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(4), 25. https://doi.org/10.26668/businessreview/2023.v8i4.1382

Tandiawan, V., Ismanto, J., Sana, N. L., Suyatno, A., & Judijanto, L. (2025). The impact of corporate governance, financial performance, and market competitiveness on firm value in emerging markets. Calitatea, 26(208), 132-137.

Thomas, D., & Zubkov, P. (2023). Quantitative research designs. Quantitative research for practical theology, 5(6), 103-114.

Trivedi, G., Bhagat, M., & Sharma, K. (2024). Corporate governance and financial performance: the role of management practices in enhancing shareholders’ value. Educational Administration: Theory And Practice, 30(4), 8699-8704. https://doi.org/10.53555/kuey.v30i4.2807

Xuan, S. M., & Loang, O. K. (2023). The role of corporate governance in enhancing financial performance and investor confidence. International Journal of Accounting, 8(50), 234-254. https://doi.org/10.55573/IJAFB.085018

Yanney, A. A. S. (2025). Redefining corporate financial governance through AI-Powered predictive models for global business risk management. International Journal of Research Publication and Reviews, 2(6), 25-49. https://doi.org/10.55248/gengpi.6.0625.2037