, Volume 9, Issue 2-3, pp 283-296
Date: 23 Nov 2006

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.

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