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...ining (Formative) 3.63 1.83 0.13 1.40 V8 3.98 1.06 0.18 2.02 V9-28 4.80 0.33 0.14 5.62 5.2. Measurement and measurement quality Formative items represent measures that cause the construct under study =-=[55]-=-. Changes in the construct are therefore not expected to cause any changes in the indicators (for an overview of indicator specification, see [56]). As a result, items within a formative scale are not...

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... was calculated. AVE indicated that the set of indicators as a whole was sufficient of explaining the latent construct. All constructs with reflective items had AVE above the recommended level of 0.5 =-=[59]-=-, as shown in table 3. Table 3. Descriptive Statistics – E-business Performance, reflective indicators E-business efficiency (Reflective) Composite Reliability Mean Std. Loading t-stat. 0.86; AVE 0.67...

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...the SMEs’ ability to invest in training, and the content of the training offered by the provider. The reliability of the dependent variable constructs was assessed using Cronbach’s alpha. Hair et al. =-=[57]-=- suggest that an alpha of 0.60 is acceptable for exploratory research and 0.80 for confirmatory research. Reliability analysis for the multi-item scales showed the following coefficient alphas: e-busi...

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... validity was estimated based on the item loadings, and a loading of above .70 is recommended, which indicates that at least half of the variance in each item is accounted for by the latent construct =-=[58]-=-. For all dimensions of ebusiness performance the items had sufficient convergent validity in terms of their squared loadings (see table 2). In addition, average variance extracted (AVE) was calculate...

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...ement work processes made possible by new technologies. New business or IT work processes can be designed or old processes can be restructured in order to leverage the opportunities of new technology =-=[31]-=-. Regardless of which strategy is chosen, the company must have the ability to identify and implement changes in business processes in order to increase process efficiency to the level required by the...

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...ion, PLS focuses on the model’s ability to predict rather than explain the variability of the dependent variables. PLS is therefore most useful in situations where the theory is still being developed =-=[54]-=- and can suggest refinements in theory by showing how substantially indicators are related to constructs and how assumed predictors are related to one or more dependent variables. In PLS, the predicti...

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...rs broad support for the notion that a company’s ability to realize potential benefits of new technology is influenced by the ability to organize business processes that leverage this potential (e.g. =-=[24, 25]-=-). More specifically, empirical studies in the area of IS economics have documented that among Fortune 500 companies productivity gains from utilizing new technologies are higher in companies that org...

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...ntage of e-business opportunities and take part in business network partnerships. 2.4. E-business performance dimensions Our definition of e-business performance is based on the work of Amit and Zott =-=[48]-=- who describe the potential of value creation in the context of e-business in four interrelated dimensions: efficiency, complementarities, lock-in, and novelty. Efficiency describes possible reduction...

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...of indicators in the scale with the largest number of formative indicators, or 2) ten times the largest number of structural paths directed at a particular dependent construct in the structural model =-=[61]-=-. 6sHypotheses H1a states a positive association between training and e-business performance in terms of efficiency, and this was not supported. Hypothesis H1b holds that training will be positively r...

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...ing the importance of competences in managing these inter-organizational relationships ( e.g. [18]). In the network economy, businesses that are able to form effective partnerships will be more agile =-=[47]-=- and competitive. This ability is particularly important for small and medium-sized enterprises, which typically have scarce resources and limited ability to exploit business opportunities on their ow...

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...e’/‘not at all’ and ‘totally agree’/‘very large extent’. The independent variables were measured as formative indicators (for a review of construct indicators and measurement model specification, see =-=[51]-=-). The dependent variable e-business performance was measured with reflective indicators of each of the four dimension of performance: efficiency, complementarities, lock-in and novelty. We then condu...

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...ed that among Fortune 500 companies productivity gains from utilizing new technologies are higher in companies that organize themselves in ways that leverage the potential of the new technology (e.g. =-=[26]-=-). In a European study of 441 Spanish SMEs, Dans [27] found a similar correlation between IT-investments and productivity for SMEs that can partly be attributed to organizational redesign. The most fu...

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...ed to take part in a sample. 116 providers accepted and were then interviewed. The operationalizations of e-business competence were based on instruments and operationalizations previously documented =-=[18, 19, 21, 22, 49, 50]-=-. The operationalization of e-business training was based on the work of Patton et al. [1] who identified characteristics of both the supply side and demand side as important to understand the trainin...

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... Also, studies of IS outsourcing success have documented the importance of the ability to form high quality partner relationships and having the capability to learn or to acquire the needed knowledge =-=[45, 46]-=-. We define competence in alignment as the ability to combine and use available competences. For example, sourcing could take place through two different activities that either create access to compet...

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...ed to take part in a sample. 116 providers accepted and were then interviewed. The operationalizations of e-business competence were based on instruments and operationalizations previously documented =-=[18, 19, 21, 22, 49, 50]-=-. The operationalization of e-business training was based on the work of Patton et al. [1] who identified characteristics of both the supply side and demand side as important to understand the trainin...

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...d that competence derived through participation in networks overcame other business weaknesses. Studies on EDI adoption and Internet adoption have also highlighted the role of relationship competence =-=[43, 44]-=-. Also, studies of IS outsourcing success have documented the importance of the ability to form high quality partner relationships and having the capability to learn or to acquire the needed knowledge...

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...siness for the business domain, but Tom R. Eikebrokk Agder University College Norway tom.eikebrokk@hia.no also for developing the distinctive capabilities needed to perform well in the e-business era =-=[9]-=-. Governments in most industrialized countries have implemented various stimulation programs including training to increase e-business competence. Despite these efforts, there is only scarce theoretic...

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...anagement is defined as activities related to the management of the IT function, such as IS planning and design, IS application delivery, IT project management, and planning for control and standards =-=[18, 32]-=-. The work of Bharadwaj et al. [18] clearly demonstrates the empirical significance of IT management. Research shows that SMEs generally have an ad-hoc approach to IT management, and therefore seldom ...

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..., and one of the dimensions of Sambamurthy and Zmud [22] and Feeny and Willcocks [19]. Several empirical studies have documented the important role of strategic vision for SMEs’ adoption of ebusiness =-=[9, 23]-=- According to our review, this dimension consists of two sub-dimensions. First, a significant part of this dimension is the company’s ability to envision the strategic potential of new e-business tech...

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...sure where training emerged as a result of the external supply and internal demand described above. ‘E-business performance’ was operationalized according to the dimensions described by Amit and Zott =-=[2]-=-. The indicators for all constructs were measured on a seven point Likert-type scale between ‘totally disagree’/‘not at all’ and ‘totally agree’/‘very large extent’. The independent variables were mea...

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...iate technique in the testing of our hypotheses along with the measurement quality of our formative and reflective indicators. PLS is a confirmatory, second-generation multivariate analysis technique =-=[52]-=- that is well suited for highly complex predictive models [53]. PLS has several advantages that makes it well suited for this study, including the ability to handle reflective and formative indicators...

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...eny and Willcocks [19] have conceptualized this dimension as “Business IT strategic thinking”. Elements of this dimension are also implicitly contained in two of the dimensions of both Peppard et al. =-=[20]-=- and Basselier et al. [21], and one of the dimensions of Sambamurthy and Zmud [22] and Feeny and Willcocks [19]. Several empirical studies have documented the important role of strategic vision for SM...

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...therefore seldom have a defined IT budget or an explicit IT plan or strategy, and investments in technology are often driven by the owner, rather than by any formal cost-benefit or strategic analysis =-=[27, 33]-=-. Competence in systems and infrastructure was covered in several literature sources, including the empirical study of Bharadwaj et al. [18].We define competence in systems and infrastructure as the k...

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... measurement quality of our formative and reflective indicators. PLS is a confirmatory, second-generation multivariate analysis technique [52] that is well suited for highly complex predictive models =-=[53]-=-. PLS has several advantages that makes it well suited for this study, including the ability to handle reflective and formative indicators and robustness in relation to departure from multivariate nor...

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...s, along with ignorance to the supply of training have been found to represent such barriers [3, 14]. In a review of the research on small business performance and training, Patton, Marlow and Hannon =-=[1]-=- conclude that despite the almost axiomatic proposition that training increases business performance, very few empirical studies have been able to demonstrate the significance of this relationship. A ...

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...tives [13]. Organizational constraints seem to create barriers to SMEs. Lack of time and financial resources, along with ignorance to the supply of training have been found to represent such barriers =-=[3, 14]-=-. In a review of the research on small business performance and training, Patton, Marlow and Hannon [1] conclude that despite the almost axiomatic proposition that training increases business performa...

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...w by Westhead and Storey [2, 3] concluded in a similar vein that there was no substantial evidence showing that training is positively related to business performance in SMEs. Cosh, Duncan and Hughes =-=[15]-=- studied a large sample of SMEs from the manufacturing and business services sectors during the two time periods 1987-90 and 1990-95. When controlling for other factors like firm maturity and past inn...

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... to reassess their boundaries and focus their attention on interorganizational issues. A study of small manufacturing firms found that inter-organizational relationships are important for performance =-=[38]-=-. Networks, whether in the form of strategic alliances or informal linkages, are important to pool resources and talents for mutual benefit of participants [39-41]. Jarrat [42] found that competence d...

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...e conceptualized this dimension as “Business IT strategic thinking”. Elements of this dimension are also implicitly contained in two of the dimensions of both Peppard et al. [20] and Basselier et al. =-=[21]-=-, and one of the dimensions of Sambamurthy and Zmud [22] and Feeny and Willcocks [19]. Several empirical studies have documented the important role of strategic vision for SMEs’ adoption of ebusiness ...

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... e-business in the SME segment will increase a country's competitiveness in the long run, and that successful adoption and use of e-business technology is crucial for survival in the new economy (see =-=[4]-=- for an overview). However, several studies indicate that SMEs for the most part are unable to successfully adopt and use e-business technology [4]. A number of studies has emphasized the lack of e-bu...

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...d that competence derived through participation in networks overcame other business weaknesses. Studies on EDI adoption and Internet adoption have also highlighted the role of relationship competence =-=[43, 44]-=-. Also, studies of IS outsourcing success have documented the importance of the ability to form high quality partner relationships and having the capability to learn or to acquire the needed knowledge...

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...ntained in other competence terms in all our other sources. We define competence in sourcing as the ability to secure access to relevant competences either inside or outside of the company. MacGregor =-=[37]-=- argues that electronic business has forced organizations to reassess their boundaries and focus their attention on interorganizational issues. A study of small manufacturing firms found that inter-or...

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...rs broad support for the notion that a company’s ability to realize potential benefits of new technology is influenced by the ability to organize business processes that leverage this potential (e.g. =-=[24, 25]-=-). More specifically, empirical studies in the area of IS economics have documented that among Fortune 500 companies productivity gains from utilizing new technologies are higher in companies that org...

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...portant for performance [38]. Networks, whether in the form of strategic alliances or informal linkages, are important to pool resources and talents for mutual benefit of participants [39-41]. Jarrat =-=[42]-=- found that competence derived through participation in networks overcame other business weaknesses. Studies on EDI adoption and Internet adoption have also highlighted the role of relationship compet...

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... Also, studies of IS outsourcing success have documented the importance of the ability to form high quality partner relationships and having the capability to learn or to acquire the needed knowledge =-=[45, 46]-=-. We define competence in alignment as the ability to combine and use available competences. For example, sourcing could take place through two different activities that either create access to compet...

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...s from utilizing new technologies are higher in companies that organize themselves in ways that leverage the potential of the new technology (e.g. [26]). In a European study of 441 Spanish SMEs, Dans =-=[27]-=- found a similar correlation between IT-investments and productivity for SMEs that can partly be attributed to organizational redesign. The most fundamental challenge to SMEs may lie in changing the m...

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...ed to take part in a sample. 116 providers accepted and were then interviewed. The operationalizations of e-business competence were based on instruments and operationalizations previously documented =-=[18, 19, 21, 22, 49, 50]-=-. The operationalization of e-business training was based on the work of Patton et al. [1] who identified characteristics of both the supply side and demand side as important to understand the trainin...

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...0 and 20 employees. Other effects, such as employment and sales growth, were also found to be positively related to training, but this relationship was not always significant. Winterton and Winterton =-=[16]-=- investigated the relationship between competence based management development and performance in companies of different size, and found that the evidence for the relationship was significantly weaker...

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...tives [13]. Organizational constraints seem to create barriers to SMEs. Lack of time and financial resources, along with ignorance to the supply of training have been found to represent such barriers =-=[3, 14]-=-. In a review of the research on small business performance and training, Patton, Marlow and Hannon [1] conclude that despite the almost axiomatic proposition that training increases business performa...

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...conomy and electronic commerce. We adopted a relatively broad definition of e-business as the conduct of business generally with the assistance of telecommunication and telecommunications-based tools =-=[11]-=-. Definitions of SMEs do also vary. The term Small Business is commonly used in the United States where measures as number of employees, total turnover, and industry are used to define an SME. The Eur...

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...s an ongoing debate on whether a positive relationship exists between training and small business performance. SMEs are reluctant to engage in training initiatives despite the existence of incentives =-=[13]-=-. Organizational constraints seem to create barriers to SMEs. Lack of time and financial resources, along with ignorance to the supply of training have been found to represent such barriers [3, 14]. I...

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...nsions on a review of several sources including the IS field and organization science. Most of the IS competence literature has acknowledged the role of business strategy competence. Bharadwaj et al. =-=[18]-=- and Feeny and Willcocks [19] have conceptualized this dimension as “Business IT strategic thinking”. Elements of this dimension are also implicitly contained in two of the dimensions of both Peppard ...

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...c thinking”. Elements of this dimension are also implicitly contained in two of the dimensions of both Peppard et al. [20] and Basselier et al. [21], and one of the dimensions of Sambamurthy and Zmud =-=[22]-=- and Feeny and Willcocks [19]. Several empirical studies have documented the important role of strategic vision for SMEs’ adoption of ebusiness [9, 23] According to our review, this dimension consists...

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... predictive ability of the model including the dependent variables’ ability to explain the dependent variable. In conducting the structural analyses and hypotheses tests we used PLS-graph version 3.0 =-=[60]-=-. The significance of each path in the structural model was estimated using the bootstrap re-sampling method with 200 re-samples. Our sample size of 339 exceeds the minimum recommended sample size of ...