Shopee Usage and Local Business Performance in Palompon, Leyte: Evidence for a Digital Integration and Resilience Framework

Abstract The rise of e-commerce platforms has transformed consumer purchasing behavior, raising questions about the impact on local businesses, particularly micro, small, and medium enterprises (MSMEs). This study examined the effect of customers’ usage of Shopee on the performance of local businesses in Palompon, Leyte, and proposed a framework to support digital integration and resilience. Employing a quantitative descriptive-correlational design, data were collected from 50 Shopee users and 50 local business owners using structured questionnaires. Shopee usage was measured across purchasing patterns, price sensitivity, convenience, trust, and satisfaction, while business performance was assessed through annual income and daily customer counts. Descriptive statistics and Spearman rank-order correlation were utilized to analyze the data. Findings revealed that customers’ usage of Shopee was very high, with convenience and price sensitivity as the strongest drivers. The annual income and daily customers of local businesses showed mixed effects, with some enterprises maintaining or increasing performance, while others experienced declines. Correlation analysis indicated a significant negative relationship between Shopee usage and business performance, suggesting that increased online shopping may reduce physical store revenue and customer traffic. The study underscores the need for MSMEs to adopt digital strategies, integrate online and offline operations, and enhance competitive positioning to sustain business performance. Based on these findings, a Digital Integration and Resilience Framework was proposed to guide local enterprises in navigating the digital economy, promoting technological adoption, hybrid business models, and long-term sustainability.