An Exploratory Investigation of Organizational Factors and e‐Business Motivations Among SMFOEs in the US

Abstract

It is well recognized that e‐business supports all parts of an organization's value chain, and offers valuable competitive advantage to firms. SMFOEs (Small and Medium‐sized Family Owned Enterprises) represent the majority of firms worldwide and yet many have lagged in their adoption of e‐business. This paper investigates the influence of key organizational demographics, owner/manager characteristics, and organizational strategy on SMFOEs' motivations for e‐business. Eight hypotheses were formulated and tested. Characteristics found to have the greatest influence on e‐business motivation are the business strategy of the firm, new product strategy, and market scope. Owner/manager education, industry sector, and firm size were also influential, but to a lesser degree. The overall conclusion is that e‐business is in the early stages of evolution in small organizations and is favoured largely by entrepreneurial and innovative firms.

Keywords:

• e‐commerce
• family business
• e‐business
• small business

Notes

1. Rational behaviour would suggest that before investing in e‐business, a firm must perceive substantial benefits; otherwise, they will not go online.