Abstract
Internet-based application (e-business) is well-recognized as a useful mean to extend business efficiency. Owing to the idiosyncratic nature of Small and Medium-sized Enterprises (SMEs), considerable works have been initiated to explain why firms within this sector embrace e-business. Despite extensive research to identify factors that explain the firm’s e-business practice, works are still limited to examining as to what extent the e-business assimilates into business operation. Furthermore, firms would experience varying degrees of benefits by deploying e-business. Therefore, this paper reports intensity of ebusiness usage across various business processes and its relationship with cumulative benefits. A survey of 140 SMEs has revealed the diversity of e-business usage across business processes. A cluster analysis has further proposed three distinct profiles of firms based on the intensity of their e-business usage. Finally, the empirical evidence obtained has also ascertained positive association between the intensity of e-business usage and cumulative e-business benefits. Despite limitations highlighted, this paper provides evidence on the current state of e-business usage across firm operation and its likely impact to the firm operation.
Highlights
Small and Medium-sized Enterprises (SMEs) dominate over 80% of total established businesses in most nations
Diversity of e-business usage across business functions would raise a concern whether firms could be classified into several meaningful profiles depending on how e-business supports their operation
Instead of examining types of e-business technologies being deployed, this paper investigates the extent of Internet support across various business processes and its impacts to business operation
Summary
SMEs dominate over 80% of total established businesses in most nations. In view of salient SMEs’ roles in the nation’s development, government and related-agencies have initiated measures to facilitate firms in extending operation productivities. Variances of e-business usage across firms reflect unequal benefits to be realized from such investment. Responding to these arguments, this paper explores the extent of e-business deployment by the SMEs and its consequences to perceived e-business values. The objectives of this paper are: (i) to investigate the extent to which firms perceive the Internet as a useful tool to facilitate business operation, (ii) to explore different profiles of firms based on the intensity of their e-business usage, and (iii) to assess the possible relationship between the extent of e-business usage and realized e-business benefits. Investigating e-business diffusion across firm operation would offer alternative insights on creating e-business values to the firms (Cragg et al, 2007; Tallon, 2007). The final part presents discussions and conclusion of the study
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