Globalization and information technologies (IT) are drastically changing the face of business and organization. We are all experiencing one of the most noticeable changes to our daily lives - the move to an Internet-based society. At present, there is a growing interest in the use of Electronic business as means to perform business transactions. IT are being adopted and incorporated into nearly all organizations, which have invested heavily in IT infrastructure for the overall success of their businesses. Through using Electronic business, companies are able to connect with their trading partners, which improve their competitiveness globally. Not only Electronic business could create the Web-based businesses, it is the building of new industrial order. Such a revolution brings a myriad of opportunities as well as risks. Electronic business is an exciting area for research because of its relative novelty and exploding growth.

Despite the widespread trends in business process outsourcing, there has been too little focus on what happens to the shareholder wealth and firm value when an organization outsources. Typically, organizations simply lack the means and experiential research to assign value to business processes they are transferring and receiving. That is, they have no real understanding of how new value can be created in business process outsourcing situations, let alone exploited. This is a continuation of my dissertation research which focused on the shareholder wealth effect of business process outsourcing to the firm.