Information Technology Payoff in E-Business Environments

Information Technology Payoff in E-Business Environments: An International Perspective on Value Creation of E-Business in the Financial Services Industry
 (Zhu, Kraemer, & Dedrick, 2004)

This article discusses a framework that was developed as a model to assess the value of e-businesses at a firm level, the framework was called Technology-Organization-Environment (TOE). The Value-created study was based on a formula that identified 6 different theories; firm size, global scope, technology readiness, financial resources, competition intensity, and regulatory environment, all of these factors can affect the value creation of an e-business. They surveyed 612 different firms in 10 countries to collect the data for the theoretical model. To see how the e-businesses were influenced by economic environments they used subsampling from both developed and under-developed countries. The article goes into great detail regarding how each of the 6 framework types added valued based on the TOE theory. However, at the end of the article they do a summation on the overall findings, it appears that the findings for government regulation played the biggest and most important role regarding usefulness within the e-business framework.

            My thoughts on this article is that if you review each of the 6 detailed frameworks parts, they would provide some really good information on the structure equation model and some detailed empirical analysis of how e-businesses could structure their internal processes in order to add value in a competitive environment. I would recommend this piece of research for anyone wanting to look at transforming their e-business with a shift to better monetary gains.