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E-Business Innovation and Firm Performance
Abstract
Companies develop e-business initiatives to improve communications with customers and suppliers. However, one of the challenges for information systems managers is to determine whether such investment generates any value with respect to firm performance. By extending previous research done by Shin (2004), this research empirically examines the relationship between e-business innovation and firm performance. It employs the Information Week’s annual data set on innovative users of IT for two years: 2000 and 2001. The measure of e-business innovation is constructed by combining the categories of ebusiness strategy and customer knowledge available from the data set. This study attempts to show how firms can improve their performance with e-business innovation by providing empirical evidence for the economic payoffs generated from e-business innovation.
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