3 / 2019-09-13 01:27:02

Structural Equation Modeling Approach to Analyze the IT Governance Moderation in the Relationship of E-Commerce Adoption to Organizational Performance

Information technology; E-commerce; Security, Ease of use; E-commerce adoption; Organization performance, IT Governance, Structural Equation Modeling

As advance communication technologies significantly effect in business performance, adoption to advance communication technologies is becoming in essential requirement to the organizations today. This is directly affected to the county economy. Therefore, organizations should pay high attention to digital communication systems which improve the business performance. To get use of the technology, organizations must start to invest on new technologies to business like e-commerce solutions to experience the business performance improvement. In this article authors explain the relationship of adoption to E-commerce solutions and its direct relationship to organizational performance. Further this article explains the Information Technology (IT) -governance moderating effect to organizational performance. The data validated using Small and Medium Scale manufacturing (SME) as SMEs are known as the back born of any developing nation and manufacturing is the largest industry sector in Sri Lanka. This article uses Structural Equation Modeling (SEM) for data analysis and suggestions to improve the effect to organization performance by adopting to E-commerce solutions with the moderator effect of IT governance. Initially data collected through a structured questionnaire and analyzed using SEM. In SEM, initially data cleared and analyzed with Exploratory Factor Analysis (EFA) followed up with the Confirmatory Factor Analysis (CFA). As this is a part of a study conducted to find the information technology factors effecting to the adoption the entire data set went through the EFA and CFA respectively. The study found that organization performance will be improved with the adoption to E-commerce in small and medium scale organizations in Sri Lanka and governance moderate the effect. The study analyzed the moderation in two ways as high and low governance and found that both the levels will improve the organizational performance. Therefore, organizations adopted to e-commerce solutions now should take care of proper use of the technology and governance of the technology to improve the performance.