Factors affecting evaluation of e-business projects

ISSN： 0263-5577

Source： Industrial Management & Data Systems, Vol.105, Iss.4, 2005-05, pp. : 409-428

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Abstract

Purpose - Despite rapid expansion of e-business, the research on corresponding evaluation is relatively rare. This paper studies the factors that impact how companies evaluate their e-business projects. Design/methodology/approach - Paper starts with conceptualization of factors that affect the usage of e-business evaluation. The empirical part is based on representative telephone survey (n=755) among Slovenian companies in 2003. The causal model (LISREL) was applied on this data. Findings - Only about one tenth of the companies with sizeable e-business projects employs some type of formal e-business evaluation. One reason for that might be high satisfaction with e-business. Among formal methods return on investments and cost benefit analysis dominate. However, once a company decides to apply evaluation approach it will use more methods, usually three or four. The attitudes towards e-business are the most important factors affecting the implementation of e-business evaluation methods. Surprisingly little differences were noticed in respect to the size of the company, its IT infrastructure, as well as the number and variety of e-business projects. Practical implications - The attitudes of the IT management are crucial for employing evaluation of e-business projects. Originality/value - The paper revealed that the perceptions of e-business most strongly affect the corresponding e-business evaluation practice. On the other hand, the high occurrence of problems related to e-business implementation has a negative impact on the introduction of evaluation methods.