Abstract
This research examines performance measurement practices and financial effectiveness in Hungarian e-commerce from 2019 to 2023, addressing how inconsistent decision-support systems challenge sustainable profitability. Conducted across a structured multi-phase research timeline (2022–2025), the research included formulating a theoretical framework and Opten database filtering (2022–2023), questionnaire design and pilot testing (July 2023), primary survey data collection (July–December 2023), data cleaning and outlier filtering in early 2024, secondary five-year financial panel processing (2024), and a final empirical synthesis (2025). Our two-pillar methodology combines a secondary panel analysis of 5,738 double-entry bookkeeping companies with a primary survey of 200 decision-makers, utilizing descriptive statistics, Welch’s t-test, multivariate regression, and K-means clustering. Findings revealed a pandemic-era profitability paradox: unprecedented revenue growth alongside severe operational margin compression. Time-series analysis shows an influx of low-efficiency, marginal entrants drove average return on sales (ROS) to 0.99% by 2022 prior to structural transformation. Primary survey findings indicate performance connects strongly with digital enhancement tools (social media advertising, active customer relationship management), while operational friction creates drag. Additionally, regional capital asymmetry leaves peripheral firms highly leveraged compared to central, liquid enterprises. Achieving sustainable competitive advantage requires transitioning from a defensive posture to proactive, data-driven performance management systems.