Could e‐business create a competitive advantage in UK SMEs?

Purpose – This paper aims to improve the understanding of e‐business, competitive advantage and their roles in the UK SMEs. This paper uses case studies to examine what is needed for SMEs to change from an “old” traditional business strategy to a new “e” business strategy. Design/methodology/approach – A range of academic and practitioner literature related to IT, e‐business, and different business models is reviewed. Nine case studies were used to collect information from SMEs in the UK. Findings – It may be possible for some SMEs to integrate the internet technology into an overall strategy and this new technology could lead to a competitive advantage. However, owners' attitudes towards new technology, the knowledge and skills of management and the workforce are recognised as potential problematic issues. Originality/value – The results of an academic literature review and nine case studies were employed to construct a prototype of an e‐business model named “Competitive Advantage Through E‐business” (CATE‐b). In that respect the CATE‐b prototype model identifies possible e‐business application areas and proposes a plan for e‐business integration.