The Use of E-Business in Agribusiness: Investigating the Influence of E-Readiness and OTE Factors

Abstract

This study explores antecedents to sector based e-business use. Sectoral e-business studies are valuable to understand the absorption of e-business in different economic sectors, the specific challenges of using e-business across different sectors and the potential of different sectors to integrate into the global digital value chain. Drawing from the perceived e-readiness model (PERM) and the Organizational, Technological and Environmental (OTE) framework, an integrated e-business use model is proposed. Data were collected from a survey of firms in the horticulture sector in Australia. Empirical analysis of the integrated model show that e-business use within the horticulture sector is at the initial state of maturity. In terms of the antecedent factors, this research shows that technology competence, financial commitment, perceived environmental e-readiness and organizational size are influential factors that directly affect e-business use. Perceived organizational e-readiness has an indirect influence on e-business use. The implications of these findings to both global IT management and e-business research are discussed. Practitioners such as governments, horticulture associations, growers and growers associations and digital marketplace operators, through understanding these factors affecting e-business use, can make effective decisions to develop their support, capabilities and offerings respectively.