An empirical assessment of the antecedents of electronic-business implementation and the resulting organizational performance

Abstract

Purpose – The purpose of this paper is to propose and empirically test a unified framework that captures the antecedents of e-business implementation, that is; organizational factors which is decomposed into organizational capabilities (training availability, technical expertise, knowledge level), knowledge management capabilities (knowledge acquisition, application, and sharing), adhocracy culture, and top management support, e-business implementation, and organizational performance (efficiency, sales performance, customer satisfaction, relationship development). Design/methodology/approach – Data from a survey of 258 top managers in Saudi Arabian enterprises were collected to empirically test the proposed research model. Additionally, the statistical techniques employed included a confirmatory factor analysis to examine the reliability and validity of the measurement model, and structural equation modeling using AMOS is utilized to test the hypotheses. Findings – The findings of this study suggest that organizational factors influence e-business implementation. Moreover, e-business implementation affects organizational performance. Research limitations/implications – This study did not investigate all organizational factors and knowledge management processes. Future research could assess the influence of additional factors such as technology and environment contexts on e-business implementation. Practical implications – Owners/managers considering e-business implementation would be best to focus on internal (organizational) factors and their interaction within and beyond the organization, rather than focussing exclusively on technological considerations. Originality/value – This study is significant for at least two reasons: it determines the key antecedents to successful business implementation based on organizational factors and it helps to understand the effects of e-business implementation on organizational performance.