The purpose of this study is to investigate the environmental and organizational factors that influence the intensity of electronic business adoption by contemporary organizations, and provide evidence regarding the relationship between e‐business adoption and organizational performance.
The study develops an integrative conceptual model of the antecedents and performance outcomes of e‐business adoption. The research model is subsequently tested empirically using data collected from 154 hotel companies. Structural equation modeling procedures were used to assess the psychometric properties of measurement scales and test research hypotheses.
The study findings indicate that customer power has the greatest impact on the intensity of e‐business adoption, followed by organizational learning ability, adhocracy culture, and top management emphasis. The results also suggest that companies that use the internet more extensively to perform a range of value‐chain activities achieve superior e‐business performance, and e‐business performance has a significant positive effect on organizational performance.
E‐business adoption can provide substantial benefits to companies including increased revenues, operational efficiency, customer satisfaction, and relationship development. A thorough understanding of the factors that facilitate (or inhibit) e‐business adoption, and the provision of clear evidence regarding its potential impact on business performance, is critically important for firms that should invest significant financial and human resources in order to successfully implement these innovative technologies. The present study adds to the limited empirical work done in this area by simultaneously investigating the antecedents and outcomes of e‐business adoption, within the context of a highly competitive and rapidly evolving industry.
