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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Evaluating E-Business Leadership and its Links to Firm Performance

Evaluating E-Business Leadership and its Links to Firm Performance
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Author(s): Jing Quan (Salisbury University, USA)
Copyright: 2009
Pages: 10
Source title: Selected Readings on Information Technology and Business Systems Management
Source Author(s)/Editor(s): In Lee (Western Illinois University, USA)
DOI: 10.4018/978-1-60566-086-8.ch025

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Abstract

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are prompted to invest heavily in e-business related activities such as supplier/procurement and online exchanges. Whether the investments have actually paid off for the firms remain largely unknown. Using the data on the top 100 e-business leaders compiled by InternetWeek, the leaders are compared with their comparable counterparts in terms of profitability and cost in both the short-run and long-run. It is found that while the leaders have superior performance based on most of the profitability measurements, such superiority is not observed when cost measurements are used. Based on the findings, managerial implications are offered accordingly.

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