E-Business Usage in Tourism Industry: Drivers and Consequences

Abstract

In seeking empirical evidence of E-business practices and its business implications, this study introduced and tested an interactive, comprehensive and multi-dimensional theoretical model in developing country settings. The model assessed the drivers of E-business usage by looking at technological, organizational, and environmental (TOE) factors and established a relationship between E-business usage and business performance by measuring business performance based on the three dimensions; impact on financial, impact on customers, and impact on internal business process. Samples were selected using stratified random sampling which yielded 160 valid questionnaires and the structural equation modelling method was used to evaluate the model. In assessing the drivers of E-business usage, technology competence, web functionalities, firm size, and pressure intensity were found to have significant influence on the extent of E-business usage. Also, E-business usage was found to have significant influence on business performance with positive relationship.