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A field study was conducted to determine organizational readiness for implementing E‐business solutions by utilizing drivers suggested in the business process reengineering literature. Based on a literature review, we theorized a schematic framework to reflect the anticipated relationships between the independent variables of technology team capabilities, nature and scope of legacy business applications, high‐tech resources, value‐chain, management expertise, supply chain management and enterprise resource management, and the dependant variable of E‐Business readiness. A survey collection method comprised of a 29‐item questionnaire was used. The study was carried out with a sample population from employees in various departments of a large, multinational pharmaceutical company. Data analysis of project hypotheses showed that 47.7% of the variance of E‐Business readiness was explained by the five independent variables, and that management expertise had the most significant influence. Recommendations directed at the senior management and E‐Business Teams include the importance of having an E‐Business team to manage new technology, and the need to create synergy between the organizational functions and departments. Though this analytical field study was conducted in a framework of one case study, results can be used to establish a foundation for a comprehensive study across business firms.

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