Science & Engineering Research Support soCiety (SERSC)
With the development of information technology, e-business becomes the core competition of small and medium enterprises in recent years. In this paper, the authors make an empirical test to analyze how the application of e-business will effect on the business performance. The result shows that the e-business application index increased 1 percentage can drive sales volume increased by 0.22 percentages, so the effect of e-business to SMEs' business performance is obvious. From Johnson co-integration test, the result shows that there exist at least one direct co-integration relationship between e-business application and sales volume, which means that there exist a long-term equilibrium relationship between e-business application and sales volume in SMEs.