Evaluation of E-business micro and macro determinants by Multiple Indicators Multiple Causes model

Abstract

The methods employed for the research include comparative and systematic literature analysis, statistical data analysis, expert evaluation and the Multiple Indicators Multiple Causes (MIMIC) model. There are several research gaps in the field of e-business: 1) there is no simplified factor model which would denote the development of e-business, including its causes and consequences, and which, due to its universality, could be adapted to any country; 2) the studies of e-business development lack a comprehensive assessment which would consider this phenomenon in both quantitative and qualitative terms. On the basis of the theoretical analysis, a model for assessment of e-business development has been formed. The results of the empirical evaluation have revealed that in the group of micro environmental determinants development of e-business in Lithuania is, to the largest extent, determined by business managers’ motivation to reach the defined aims and their positive viewpoint that e-business may become a perfect auxiliary tool to ensure business competitiveness. In the group of macro environmental determinants, the determinants of socio-cultural environment can be indicated as the major ones that affect the development of e-business. Application of the MIMIC model has enabled to identify the following macro economical determinants (for the euro area): real effective exchange rate for the euro area; level of households with the Internet access; quantity of individuals using the Internet for ordering goods or services; government deficit/surplus; youth employment, and individuals using the Internet for interaction with public authorities.