E-business is a broad concept that covers the application of information technology in business. E-business technology is the process of conducting transaction using web-based technology, for example, web-based technology allows firms to capture real-time information to assist with the supply-demand chain management, organizational learning, inter-organizational communication as well as human resources management within the organization. This article attempts to highlight/investigate the relationship between IT resources investment and a firm’s ability to generate revenue and maximize their functional abilities. The article further demonstrates the impact of investing in IT resources particularly over a long period.
The article highlights the impact e-business technology can have on firms, particularly with the use of web-based technology. Firstly, it allows firms to streamline their functional ability, not only between vendors and consumers but also between its employees. For example, web-based technology allows firm to encourage organizational learning as employees are able to share their knowledge between each other. Secondly, the implementation of e-business technology encourages efficiency and effectiveness in meeting the supply and demand market. By capitalizing on existing IT investment such as web-based technology, it allows firms to reach maximum potential of their functional ability.
The article further emphasized the insignificance of multiple investments particular into IT resources as illustrated by Air Canada. From the given example, the authors contended that IT investment is only beneficial at the initial stage, as the need to invest further is deemed redundant.
Additionally, the article further discusses the ways in which the implementation of e-business technology is able to influence a firm’s profitability. As e-business technology allows firms to obtain real-time information, its provides firms a platform to encourage and foster an efficient and productive working environment. This in turn results in an increase in revenue. Furthermore, the article further emphasizes the circumstances that fosters a firm’s potential to generate such revenue. The article further mentions the insignificance of e-business technology over a long period of time. As the study is conducted over three years, they found e-business technology to be ineffective the said period.
From the article, I learnt the many uses of e-business technology particularly in organizations. E-business technology is not only limited to the supply-chain management but can also be extended to enhance organizational learning and human resource management, benefiting not only the employees but also its recruitment process. Additionally, e-business technology investments provide an insight to potential financial growth for the firm.
The article presents various weaknesses which is difficult to avoid. Firstly, despite being well informed, the article is structured in an inconsistent manner. Secondly, the authors’ attempt to re-iterate their main objective in the article has resulted in them being repetitive. Several definitions can be found to explain one concept. Due to its structure and its repetitive nature, readers may find it difficult to read and comprehend. Furthermore, some readers may lose focus of the article’s main objectives. Another weakness presented by the article is the applicability of the results to the global world. Since the study is conducted on Spanish firms, the results might not be applicable to other countries whose values and cultures differ from that of Spain.
Although the results of the study provided answers to the research questions posed, the authors failed to elaborate the reasons for arriving at such conclusion. Furthermore, as all hypotheses were accepted, we can assume that they intended to achieve their objectives prior to conducting the study.
Despite its weaknesses, the article written by Jose Benitez et al provides solid evidence in illustrating the benefits for implementing e-business technology onto an organizations’ business process. The article highlighted the importance of timing in investing into IT resources. One of the main strengths of the article is the use of existing studies to support their views on e-business technology. This provides solid evidence and strengthens their stance on the matter. Furthermore, multiple analysis is used to examine the hypothesis, i.e., empirical and mediation analysis, to ensure an unbiased outcome.