Does the Internet improve business? An empirical inquiry into the perceived strategic value and contribution of the Internet

Abstract

The Internet has become an indispensable tool for business. While it is generally presumed that the Internet can provide a competitive edge over competition, no substantive empirical evidence linking the Internet to organizational performance has been presented. This study empirically tests the connection between the use of the Internet and the perceived strategic importance of the Internet and its contribution to business using LISREL confirmatory factor analysis. The findings of this study suggest that management's strategic emphasis on the Internet affect the diffusion of Internet technology in an organization and these two factors collectively improve business performance.