E-business capabilities model: Validation and comparison between adopter and non-adopter of e-business companies in UK

Author： Hafeez Khalid Keoy Kay Hooi Hanneman Robert

ISSN： 1741-038X

Source： Journal of Manufacturing Technology Management, Vol.17, Iss.6, 2006-08, pp. : 806-828

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Abstract

Purpose ? The purpose of this paper is to present a conceptual framework to evaluate e-business strategic capabilities using structural equation modelling (SEM) approach. Design/methodology/approach ? The paper identifies three e-business capabilities, namely business strategy, supply chain strategy and e-business readiness. These capabilities are further decomposed under technology, organization and people dimensions to assess their contribution for business effectiveness. A questionnaire is designed and implemented using SEM technique. Survey data from 143 firms from the UK are collected to test our theoretical model. In particular, we have tested a positive, mediating/reciprocal relationships among multidimensional measures of business strategy, supply chain strategy and e-business adoption. Further hypotheses are developed to evaluate a direct positive impact of e-business on company's performance. Findings ? This empirical analyses demonstrate several key findings: success of e-business in UK firms is attributed to the strong positive co-relationship of supply chain strategy to business strategy and to e-business adoption; within the technology-organization-people dimensions, e-business adoption and business strategy emerges as the strongest factors for the company's performances for the adopter of e-business group, whereas supply chain capabilities and business strategies is relatively a stronger contributory factor towards business success for non-adopter of e-business. Originality/value ? It is expected that the results from this study will provide useful guidelines for companies to assess their strengths and weaknesses towards adopting an effective e-business implementation strategy.