E‐business capabilities model

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.

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