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Evolution of the impact of e-business technology on operational competence and firm profitability: A panel data investigation |
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| Authors: | Jose Benitez Yang Chen Thompson SH Teo Aseel Ajamieh |
| Affiliation: | 1. Rennes School of Business, Rennes, France;2. Department of Management, School of Human Resource Management, School of Business, University of Granada, Granada, Spain;3. School of Business Administration, Southwestern University of Finance and Economics, Chengdu, Sichuan, China;4. School of Business, School of Computing, National University of Singapore, Singapore, Singapore;5. College of Business Administration, Princess Nourah bint Abdulrahman University, Riyadh, Saudi Arabia |
| Abstract: | This study examines the evolution of the impact of e-business technology on operational competence and profitability using a panel dataset of 154 Spanish firms. We find that (1) e-business technology has a positive effect on operational competence that decreases over time and (2) the firm’s proficiency in exploiting a portfolio of operational capabilities has a positive impact on profitability that becomes more substantial over time. The findings provide some insights on how the initial and subsequent IT investments affect operational competence and profitability over time. This study methodologically illustrates how to perform a partial least squares estimation using panel data. |
| Keywords: | E-business technology capability Operational capabilities Firm profitability Business value of IT Partial least squares path modeling Panel data |
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