Use of Internet Technologies and e-Business Solutions: A Structural Model of Sources of Business Value among Canadian Micro-Enterprises

This paper presents a structural model of sources of use value of Internet technologies and e-business solutions among micro-enterprises. The model postulates direct effects of connectivity, website functionality, transaction capability, and e-business use on perceived business value, and indirect effects of these capabilities on value creation via internal and external factors. The model is estimated with PLS with data from 181 micro-enterprises in Eastern Canada. It shows that perceived business value is predictable among micro-enterprises that use specific Internet technologies and e-business solutions to sell goods or services online and that seek to expand their market reach. This finding helps to explain the relatively slower uptake of e-business among micro-enterprises, many of which operate in face-to-face service industries and are embedded in local markets.