Determinants of business‐to‐business e‐commerce implementation and performance: a structural model

Purpose – Seeks to test the relative importance of various drivers of information‐technology‐related performance, and compare these drivers in the context of using established and emerging technologies. Established technologies include those generally promoted as the European Article Numbering (EAN) system (electronic data interchange (EDI), barcoding, etc.), while the emerging ones are based on the use of the internet. Design/methodology/approach – A survey was designed based on previous research and a series of case studies conducted within the membership of EAN Australia. The method of analysis employed was structural equation modelling based on data collected from 553 members of the EAN organisation in Australia. Findings – Use of technology enabling business‐to‐business (B2B) e‐commerce was found to provide a potential source of performance improvement, but such improvement is shown to be more a function of the process by which strategy is formulated, and organisational capability, than of the technologies per se . The adoption and use of emerging technologies (such as the internet) are not subject to the same restrictions and impediments traditionally associated with established technologies. Therefore, organisations will find emerging internet‐based technologies easier to implement and to use, but this will not necessarily mean that they will improve performance as a result. Performance will still be determined by effective strategy formulation, a clear understanding and knowledge of the technologies, appropriate application, and prudent change management. Research limitations/implications – This research has been conducted in Australia, and restricted to the membership of the EAN organisation. This membership is largely representative of the fast‐moving consumer goods (FMCG) industry. Whether such results would be consistent in other countries and industries would need to be verified through further research. Originality/value – Develops and tests an integrated model linking strategy formulation, knowledge, capability, use of technology and performance. Provides valuable insight into why and how technology implementations can be configured for success.