Assessing the impact of web‐based electronic commerce use on the organizational benefits of a firm

Abstract

Purpose The purpose of this study is to analyze the impact of web‐based electronic commerce (WEC) use on organizational benefits (OBE). Design/methodology/approach The researchers develop a research model based on a literature review. A large‐scale instrument was applied to empirically test the model. MANOVA was first used employing a general linear model. Then, univariate tests were performed to further analyze differences. The model was tested and validated using a sample of 180 firms in the USA. Findings The findings empirically tested that there is a significant positive impact of WEC use on OBE. Findings also demonstrated the multi‐dimensional nature of both factors. Practical implications This research develops and validates reliable measures for the WEC use and OBE. It also provides several indicators that can be used to measure the extent of usage of WEC for both transactional and strategic purposes, and OBE that span several dimensions, including information quality, business efficiency, and competitive advantage. These indicators can serve as benchmarks to evaluate the current state of a firm and help in setting future organizational goals, which can also help managers gauge the risks and benefits associated with WEC. Originality/value This paper contributes to the literature by providing evidence of the positive impact of WEC on OBE. It also develops and validates measures for all the constructs involved in the study that can be used in other empirical studies.