The emergence of e-commerce has created a new business model particularly important aspect of this is the new business paradigm which impact on marketing channels. E-commerce defines as the business of buying and selling goods and services on the internet (IDM, 2012). E-commerce may employ some activities such as online shopping web sites for retail sales direct to consumers, business-to-business (B2B) buying and selling, and B2B electronic data interchange. Therefore e-commerce business is particularly powerful in certain segments of the service industry, including tourism where internet has steadily gained popularity during the past two decades (Buhalis and Law, 2008).
Furthermore, the perspectives of e-business from the supply chain management (SCM) point of view are in attention. In the past, researches about SCM were mainly in international transportation and trading which pointed out to tangible goods. There were few researches about service business. Thus this research will pick up one of service businesses, tourism industry; because it is one of the fastest growing industries worldwide and internet gain importance in the tourism too. There were plenty evidences of growth and development in tourism due to information technology such as e-airlines (Buhalis, 2004; Weaver and Lawton, 2008). Therefore, academic research will benefit the firm in the tourism sector.
1.1.1 E-business adoption
The adoption of e-business is technological innovation in business strategy