Measuring Electronic Commerce Technology–Enabled Business Value: An Empirical Investigation

Abstract

This research investigates whether firms using e-commerce technologies are successful in generating business value and, if so, which e-commerce drivers determine this success and how firms should use these drivers. There is no systematic empirical evidence in the IT productivity and business value literature regarding the payoffs a business receives from its e-business initiatives. The current research contributes to the literature in the e-commerce area by identifying a set of e-business value constructs, incorporating these constructs in a model in a manner not done before, and empirically validating the model using an Analysis of MOment Structures (AMOS)/ Structural Equation Modeling (SEM) analysis. The present research also contributes to the e-business value literature by providing insights into causal relationships among Rogers' innovation and diffusion theory (IDT) factors. This is the first time a research study has empirically established comprehensive causal relationships among these factors. The SEM analysis of the model indicates that the proposed model is able to explain e-commerce success utilizing the constructs identified and grounded using IT business value literature and Rogers' IDT. We conclude by summarizing its contributions to the IT literature, in general, and the e-business literature, in particular, and by providing insights for practice and suggestions for future research.

Keywords:

• e-business value
• e-business drivers
• innovation and diffusion theory
• AMOS/SEM analysis

Notes

¹An e-business is an Internet-enabled business that uses e-commerce technologies, such as intranets, extranets, World Wide Web, and the Internet itself, to conduct any business activity such as buying, selling, and providing information over the Internet.

²E-commerce simply means any business activity that takes place over the Internet and other private networks.