ASSESSING DRIVERS OF E-BUSINESS VALUE: RESULTS OF A CROSS-COUNTRY STUDY

Kevin Zhu, Jason Dedrick, Sean Xu

Research output: Contribution to conferencePaperpeer-review

34 Scopus citations

Abstract

This study seeks to better understand the facors that contribute to value creation of e-business. Grounded in the technology-organization-environment (TOE) framework, we developed a research model for assessing the value of e-business at the firm level. Based on this framework, we formulated six hypotheses and identified six factors (technology integration, firm size, firm scope, financial resources, competition intensity, and regulatory environment) that may affect value creation of e-business. Survey data of 612 firms across 10 countries in the financial services industry were collected and used to test the theoretical model. To examine how e-business value is influenced by national environments, we compared two subsamples from developed and developing countries. Structural equation modeling demonstrated several key findings: (1) Within the TOE framework, technology integration emerges as the strongest factor for e-business value, while financial resources, firm scope, and regulatory environment also significantly contribute to e-business value. (2) Firm size is negatively related to e-business value, suggesting that structural inertia associated with large firms tends to retard e-business value. (3) Competitive pressure often drives firms to adopt e-business, but e-business value originates more from internal organizational resources (e.g., technological integration) than from external pressure. (4) Government regulation plays a much more important role in developing countries than in developed countries. These findings indicate the usefulness of the TOE framework and our research model for studying e-business value.

Original languageEnglish (US)
Pages181-193
Number of pages13
StatePublished - 2003
Externally publishedYes
EventInternational Conference on Information Systems, ICIS 2003 - Seattle, United States
Duration: Dec 14 2003Dec 17 2003

Conference

ConferenceInternational Conference on Information Systems, ICIS 2003
Country/TerritoryUnited States
CitySeattle
Period12/14/0312/17/03

Keywords

  • Electronic business
  • IT in financial services industry
  • IT investment
  • business value
  • firm performance
  • global diffusion
  • international perspective

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Computer Science Applications
  • Information Systems

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