Strategic Drivers and Organizational Impediments to E-Business Performance: A Latent Class Assessment

33 Pages Posted: 27 May 2003

See all articles by Tim Coltman

Tim Coltman

University of Wollongong - Faculty of Business (BUS)

Timothy M. Devinney

University of Manchester - Alliance Manchester Business School

David Midgley

INSEAD - Marketing

Date Written: March 2003

Abstract

Despite the waning of popular enthusiasm for e-business following the bursting of the tech bubble, there is still considerable awareness amongst leading corporations of the strategic potential of the Internet and related technologies. What remains poorly understood is why certain firms are successful in capturing the potential of sophisticated information technologies - in particular e-business systems - while others remain hesitant or unable to change. Building on the major theoretical arguments in strategic management, this paper investigates the complex drivers of e-business performance. At the aggregate level, we report a mediation effect between the underlying drivers of e-business performance. More importantly, however, latent class modeling techniques enable us to show that these variables are heavily influenced by the unobservable heterogeneity across firms. Four distinct types of firms populate our data, and the relationship between performance and its underlying determinants varies greatly between them. The implication is that a single model cannot explain the relationship between environment, structure, feasibility, managerial beliefs and performance.

Keywords: E-Business, Performance, Latent Class Models

JEL Classification: L1, L2

Suggested Citation

Coltman, Tim and Devinney, Timothy M. and Midgley, David, Strategic Drivers and Organizational Impediments to E-Business Performance: A Latent Class Assessment (March 2003). Available at SSRN: https://ssrn.com/abstract=392562 or http://dx.doi.org/10.2139/ssrn.392562

Tim Coltman

University of Wollongong - Faculty of Business (BUS) ( email )

Building 40A, Level 2
NSW, 2522
Australia
+61 (2) 4221 3912 (Phone)
+61 (2) 9313 7279 (Fax)

Timothy M. Devinney (Contact Author)

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

David Midgley

INSEAD - Marketing ( email )

Boulevard de Constance
Fontainebleau, 77305
France
+33 1 60 71 26 38 (Phone)
+33 1 60 74 55 00 (Fax)

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