The extent of e-business usage and perceived cumulative benefits: A survey on small and medium-sized enterprises

• Main Authors: Mohamad, Rosli, Ismail, Noor Azizi
• Format: Article
• Language: English
• Published: IFRD 2013
• Subjects: HB Economic Theory
• Online Access: http://repo.uum.edu.my/18192/1/IMBR%20%205%201%202013%20%2013-19.pdf; http://repo.uum.edu.my/18192/; http://ifrnd.org/journal/index.php/imbr/article/view/1023/1023
• Institution: Universiti Utara Malaysia

Internet-based application (e-business) is well-recognized as a useful mean to extend business efficiency.Owing to the idiosyncratic nature of Small and Medium-sized Enterprises (SMEs), considerable works have been initiated to explain why firms within this sector embrace e-business. Despite extensive research to identify factors that explain the firm’s e-business practice, works are still limited to examining as to what extent the e-business assimilates into business operation. Furthermore, firms would experience varying degrees of benefits by deploying e-business.Therefore, this paper reports intensity of e business usage across various business processes and its relationship with cumulative benefits.A survey of 140 SMEs has revealed the diversity of e-business usage across business processes.A cluster analysis has further proposed three distinct profiles of firms based on the intensity of their e-business usage.Finally, the empirical evidence obtained has also ascertained positive association between the intensity of e-business usage and cumulative e-business benefits. Despite limitations highlighted, this paper provides evidence on the current state of e-business usage across firm operation and its likely impact to the firm operation.