An Exploratory Investigation of Organizational Factors and e‐Business Motivations Among SMFOEs in the US

Authors: Levenburg, Nancy; Magal, Simha; Kosalge, Parag

Source: Electronic Markets, Volume 16, Number 1, Number 1/February 2006 , pp. 70-84(15)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

It is well recognized that e-business supports all parts of an organization's value chain, and offers valuable competitive advantage to firms. SMFOEs (Small and Medium-sized Family Owned Enterprises) represent the majority of firms worldwide and yet many have lagged in their adoption of e-business. This paper investigates the influence of key organizational demographics, owner/manager characteristics, and organizational strategy on SMFOEs' motivations for e-business. Eight hypotheses were formulated and tested. Characteristics found to have the greatest influence on e-business motivation are the business strategy of the firm, new product strategy, and market scope. Owner/manager education, industry sector, and firm size were also influential, but to a lesser degree. The overall conclusion is that e-business is in the early stages of evolution in small organizations and is favoured largely by entrepreneurial and innovative firms.

Keywords: e‐commerce; family business; e‐business; small business

Document Type: Research article

DOI: 10.1080/10196780500491402

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