The Internet and Firm Performance in Large Organisations: Towards a Model

Abstract

The Internet has provided an opportunity for innovation in the ways firms organise internal functions and relationships with customers and suppliers. This study using 281 large Australian organisations examined why some companies were more successful in enhancing their competitive advantage with the adoption of Internet-enabled business practices (IBP) than others. It found that IBP adoption was associated with employee productivity and market share growth. A full range of IBPs were also associated via complementary assets with higher return on assets (ROA) though a more customer-centric approach was directly related to ROA. A model explaining this relationship was developed and tested.