Electronic commerce is changing the way firms conduct business. Since the market of electronic commerce has grown exponentially but changes constantly, firms have no choice but to act when faced with uncertainty. This study applies the organizational information processing theory to investigate if the fit between the firms’ outside environment and inside ability enhance business performance, which is electronic commerce processing needs and electronic commerce processing capability. More precisely, the mediation effects of improvisational capabilities were examined, for the fit concept, on performance. A three-year data sample from a survey completed by the chief information officer or a senior information systems manager from the largest 5,000 corporations in Taiwan is analyzed. The results indicate that e-commerce processing needs positively affect improvisational capabilities, which then spurs internal processes performance, encourages learning and growth, elevates customer satisfaction, and increases financial performance.
Journal of Global Information Technology Management , Volume 18, Issue 1, pages 48-66