Collaborative e-business efforts and firm performance

Abstract

PurposeThe purpose of this study is to examine how e-business (EB) practices and performance are directly and indirectly related, and to examine the complementary effects of adopting various types of EB practices on both business and operational performance, where the latter is conceptualized as a mediator between EB practices and business performance.Design/methodology/approachThe structural equation modelling was used to examine the conceptual model using data collected through a survey of 108 Omani manufacturing firms. EB was conceptualized as a second-order factor resulted from a production of a simultaneous adoption of three distinct groups of EB practices to examine the complementarity effect of EB practices on performance.FindingsControlling for the variations of firm size and age effects, the empirical analysis of this study found support for the superior effects of the complementarities amongst various EB practices on business performance, but this effect will be indirect through the operational performance.Research limitations/implicationsThe research findings may lack generalisability due to the possible effects of other contextual factors which should be considered by future research studies.Practical implicationsSeveral implications are highlighted for the effective deployment of collective EB competencies, and for the role of operational performance on achieving higher business benefits.Originality/valueThis paper satisfies the need to validate the complementarity effects model in different contexts such as EB, and the need to investigate the mediating effect of other factors on EB practices and business performance.