The purpose of this work is to investigate the proposition that sourcing and alignment competencies are positively related to e-business success for small and medium sized enterprises (SMEs). We review and operationalize critical competencies in sourcing and alignment related to the use of e-business i SMEs, and we report the exploratory empirical findings from a survey. The results contribute to our understanding of adoption of e-business in SMEs, and will have implications for programs, which aim to stimulate e-business adoption and success in SMEs. The growth of business conducted over the Internet is one of the most significant developments in today's economy. Online businesses are established all over the globe at a staggering rate. Many companies, both existing ones and new ventures are seeking to reap the benefits of this revolution both in terms of increased effectiveness and efficiency as well as access to new markets. However, there is an uncomfortable fit between SMEs and e-business. Studies show that SMEs are reluctant to embrace the principles of e-business (Bode and Burn, 2001). Other studies have shown that SMEs need help in understanding how e-business can enhance the competitive position (Owens and Beynon-Davies, 2001). A recent study Amit and Zott (2001) argue that amongst IT-investments in general Internet technologies have the highest potential for value-creation through linking companies, its suppliers and customers in new and innovative ways. Amit and Zott further argue that this value potential of e-business is poorly understood both theoretically and in practice. In a European survey among Internet experts and online traders it was found that most companies did not consider e-business as a priority (Forrester Research, 1999).
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