A framework for performance measurement in the e-business environment

The advent of networked economy calls for new understanding of business, and it is evidenced by the visible trend of traditional businesses either migrating to e-business or expanding to embrace electronic commerce. Constant change in the environment means continually evolving strategies, new products, new processes and new technologies to adopt. E-business metrics are needed to measure performance with the firm s strategic focus in mind, and they must go beyond the Web metrics that are discussed in the usual electronic commerce context. The basic objective of this paper is to present a framework for developing performance measurement metrics in the e-business environment. The proposed framework, designed by incorporating the balanced scorecard methodology with existing taxonomies of e-business models and the theories behind them, is intended to enable firms to develop new metrics that are needed to implement e-business strategies and tactics. 2005 Elsevier B.V. All rights reserved.