Web services promise a step change in business‐to‐business application models and practices. But how do we measure web services' performance? Because web services are so new, and implementations so few, the purpose of this paper is to take internet performance as a proxy for web services performance.
The authors surveyed 106 e‐business SMEs to identify key drivers for internet performance, and then predicted web services performance.
Surprisingly, it was found that while business resources and IT resources positively impact internet performance, dynamic capabilities do not. Also, there appear to be significant firm size effects.
The implications of these findings for the strategic management of web services are discussed, and in particular, managers' need to balance resources and capabilities in volatile business environments.
