The sequential effects of e-business activity on business performance: a study of manufacturing organisations Online publication date: Sun, 18-Nov-2007
by In-Kuk Song, Theresa Jefferson, John R. Harrald
International Journal of Agile Systems and Management (IJASM), Vol. 2, No. 3, 2007
Abstract: Despite the proliferation of e-business success stories, many executives feel that they have not realised the return expected from the investments in expensive cutting-edge e-business components. Businesses tend to focus on immediate financial payoffs and overlook the improvements in information capabilities and business performance. This article presents the results of a research effort designed to determine the effects of e-business activity on manufacturing organisations' information capabilities, business performance and financial performance. Findings of this study show that a manufacturing organisation's e-business activity can lead to better information capabilities. When an organisation's information capabilities are enhanced via e-business activity, business performance tends to improve. In addition, the results indicate that financial performance improvements may not be an immediate, but a long-term effect of e-business activity.
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