Web service business transformation: collaborative commerce opportunities in SMEs

Web‐based technologies are becoming an important way for small and medium‐sized enterprises (SMEs) to acquire information systems capabilities to support business transformation. This paper investigates the business, technology, and IS drivers for component‐based applications. Web service technology is identified as a key driver for SMEs to gain operational and strategic benefit from net‐sourced information systems. The role of Web services in SMEs is explored through application of Venkatraman's business transformation model. The Web‐service transformation model is applied to a case study of a SME that is adopting Web service technology. The case identifies the potential benefits for SMEs of Web service technology and considers the factors that enable successful Web service adoption.