Abstract
This study examined factors determining e-business usage and its influence on business performance in the Malaysian service industry. It focuses on technological, organisational, and environmental (TOE) model to see how different characteristics of this model would predict e-business usage. Questionnaire survey method was used in collecting primary data, where samples were selected using stratified random sampling to yield 165 verified responses. In assessing drivers of e-business usage, technology competence, web functionalities, firm size, and pressure intensity were found to have significant influence on the extent of e-business usage. Among these, web functionalities appeared to be the strongest factor and had a significant positive path. It showed that higher web functionalities led to higher e-business usage. Other variables which had significant positive relationship to e-business usage include technology competence and firm size. Internationalisation scope, web technology investment costs, managerial beliefs, and regulatory support was also found to have positive relationship to e-business usage, however these relationships are not significant. Meanwhile, pressure intensity was found to have significant negative relationship to e-business usage.
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