This paper builds on research presented by the authors at IRMA 2001. Previous research by Chau and Turner (2001b) adapted the work of Venkatraman (1994) to explore the relationship between the degree of SME organisational transformation and potential benefits derived from e-commerce. The qualitative data explored reveals various factors that influence SME's ability to derive benefit from conducting Web-based e-commerce. A preliminary review suggests that these factors can be distinguished into internal factors (organisational and technological) and external factors (nature of supply chain, level of service provided by third party organisations, industry influence, and government assistance). This paper discusses these factors and their implications for modelling e-business organisational transformation.
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