E-BUSINESS, ORGANIZATIONAL INNOVATION AND FIRM PERFORMANCE IN MANUFACTURING SMES: AN EMPIRICAL STUDY IN SPAIN
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TL;DR
An integrative research model is developed which analyzes factors affecting e-business use and its effect on organizational innovation in manufacturing SMEs and suggests that e- business use emerges from technological and internal organizational resources rather than from external pressure.
Abstract
This paper extends previous studies on the organizational impact of Internet technologies by analyzing factors affecting e-business use and its effect on organizational innovation in manufacturing Small and Medium-Size Enterprises (SMEs). In addition, the mediating effect of organizational innovation on the relationship between e-business and firm performance is analyzed. Grounded in the Technology-Organization-Environment (TOE) theory and the Knowledge-Based View (KBV), this paper develops an integrative research model which analyzes those relations using partial least squares (PLS) structural equation modeling on a dataset of 175 Spanish manufacturing SMEs. Results suggest that e-business use emerges from technological and internal organizational resources rather than from external pressure. In addition, results show that e-business use contributes positively to firm performance through organizational innovation.
