A Contingent Perspective on the Development of e-business Tools and Performance: A Review

The literature has widely recognized the influence of e-business tools on business and operational performance. Some recent studies, however, suggested that researchers need to focus on exploring specific conditions that enable organizations to effectively translate their investment in developing e-business tools and practices into positive business performance and achieve up-normal return on investment. Using the contingency perspective of the firm, this paper argues that the link between e-business practices and organizational performance is influenced to a large extent by the internal and external environment within which an organization operates. That is, e-business tools and/practices does not per se lead to positive performance and rather the effectiveness of these tools/practices will improve if certain internal and external factors are satisfied. This theoretical believe is discussed, theoretically, in this paper using findings of previous studies on the relationship between e-business and performance. Some theoretical and practical implications are highlighted at the end of the paper to provide researchers and decision makes new insights on how and/or when e- business tools can lead to good performance.