The effect of e-business on corporate performance : firm level evidence for Belgium
AbstractE-business offers buyers and sellers a new form of communication and provides an opportunity to create new marketplaces. Theoretical studies suggest in general that the development of e-business results in higher firm performance as a result of lower search and head-to-head comparison costs. However, there are a number of recent theoretical studies, which demonstrate that the growth of e-commerce may lead to monopolistic pricing behaviour so that firms engaging in e-commerce need not perform better compared to more traditional enterprises. To date, there exists little empirical evidence on the impact of information technology on economic performance. This paper is the first that uses a large representative data set of Belgian firms to study empirically the impact of e-business on corporate performance. Our main conclusions can be summarised as follows: (1) The penetration of the Internet in Belgian firms is high, however, the use of e-business is still limited. (2) It is especially the large firms that engage in e-business and mostly in e-procurement. (3) E-business has no effect on total factor productivity in small firms, however, we find positive effects on performance of e-business in large firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/237909.
Date of creation: 2000
Date of revision:
Contact details of provider:
Web page: http://www.kuleuven.be
Economy; Internet; Firm performance; e-procurement; e-business;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Blanchflower & Stephen Machin, 1996.
"Product Market Competition Wages and Productivity: International Evidence from Establishment-Level Data,"
CEP Discussion Papers
dp0286, Centre for Economic Performance, LSE.
- David BLANCHFLOWER & Stephen MACHIN, 1996. "Product Market Competition Wages and Productivity: International Evidence from Establishment-Level Data," Annales d'Economie et de Statistique, ENSAE, issue 41-42, pages 219-253.
- Stephen Nickell, 1993.
"Competition and Corporate Performance,"
CEP Discussion Papers
dp0182, Centre for Economic Performance, LSE.
- Rajiv Lal & Miklos Sarvary, 1999. "When and How Is the Internet Likely to Decrease Price Competition?," Marketing Science, INFORMS, vol. 18(4), pages 485-503.
- Van Cayseele, Patrick & Degryse, Hans, 2000. "De nieuwe economie en bancaire marktstructuren," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/118851, Katholieke Universiteit Leuven.
- Friberg, Richard & Ganslandt, Mattias & Sandström, Mikael, 2000. "E-commerce and prices - theory and evidence," Working Paper Series in Economics and Finance 389, Stockholm School of Economics, revised 08 Sep 2000.
- Geyskens, I & Gielens, K & Dekimpe, Marnik, 2000. "Establishing the internet channel : short-term pain but long-term gain ?," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/223711, Katholieke Universiteit Leuven.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carl Demeyere).
If references are entirely missing, you can add them using this form.