Factors Influencing the Business Value of e-Government Services for Small and Medium Sized Enterprises

Valter Ritso, Kristiina Kindel, Urve Venesaar


The aim of the current paper is to investigate the factors that influence the use of e-government
services by small and medium sized enterprises (SMEs) in Estonia and Germany and to
identify the main benefits for users of e-government services. Based on the technological,
organisational, and inter-organisational perspectives and relevant theories, the authors have
developed a research model depicting relations between the business value of e-government
services and the factors that influence it. The model was tested contributing to the
methodology of evaluating the relations between model variables. The results point out key
factors for e-government service providers which should be addressed in order to better
understand the benefits as seen by SMEs, having used e-government services. Distinguishing
the business value (benefits) of e-government services both inside and outside the enterprise,
a stronger value was found outside the enterprise, affected mostly by external pressure from
competitors and industry sources. Service quality appeared to have a direct impact on user
benefits, in contrast to the results of previous research. The administrative burden has the
weakest influence in both countries. The research is also valuable for practical use as a deeper
understanding of the influencing factors in contributing to the e-government strategies
within the associated countries.

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