E-Business Assimilation in China's International Trade Firms: The Technology-Organization-Environment Framework

Despite the importance of international trade firms in China’s economic development, there is only limited empirical evidence about how these firms assimilate Internet-based e-business in global supply chain operations. Using the Technology-Organization-Environment framework, this study investigates technological, organizational, and environmental factors which determine e-business assimilation in these firms. Based on survey data collected from 307 international trade firms in the Beijing area, we found that environmental uncertainty was negatively associated with e-business assimilation, while a firm’s internal IT capability, relative advantage of e-business, learning orientation, and inter-organizational dependence were positive determinants of e-business assimilation. The effect of a firm’s ownership type was also significant. Environmental uncertainty was the most important inhibitor, and IT capability and inter-organizational dependence were the most salient enablers of e-business assimilation.