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Do e-business strategies matter? The antecedents and relationship with firm performance

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Abstract

Previous studies in e-business strategy focus on the issues of strategic positioning and its impact on firm performance. However, these studies do not address the antecedents to business strategies formulation and their impact on business performance or the role of business models in explaining e-business firm performance. This study applies Porter’s generic strategies to the e-business context. It also identifies business models that are applied to the e-business environment and environmental factors and then examines these factors influence on firm performance with survey data. This study finds that uncertainty has a negative impact on the choice of strategic position of e-business firms, whereas market turbulence positively affects the level of adoption of all the strategies. Among the strategic positions, marketing differentiation positively influences firm performance. The research methodology, test results, and implications are further discussed.

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Authors and Affiliations

  1. Elizabeth McDowell Lewis College of Business, Marshall University, Huntington, WV, 25755, USA

    Chulmo Koo

  2. Rawls College of Business Administration, Texas Tech University, Lubbock, TX, 79409, USA

    Jaeki Song

  3. School of Management, State University of New York at Binghamton, Binghamton, NY, 13902, USA

    Yong Jin Kim

  4. College of Business Administration, Sogang University, Seoul, South Korea

    Kichan Nam

Authors
  1. Chulmo Koo
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  2. Jaeki Song
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  3. Yong Jin Kim
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  4. Kichan Nam
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Corresponding author

Correspondence to Yong Jin Kim.

Additional information

This research was supported for the first author by the Korean Research Foundation Grant (KRF-B00026).

Appendix

Appendix

1.1 Supporting Tables

Table 6 Exploratory factor analysis
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Table 7 Pairwise discriminant analysis of constructsa
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Table 8 Construct correlation values and comparison with average variance extracted in the measurement model
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Koo, C., Song, J., Kim, Y.J. et al. Do e-business strategies matter? The antecedents and relationship with firm performance. Inf Syst Front 9, 283–296 (2007). https://doi.org/10.1007/s10796-006-9008-1

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