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The purpose of this paper is to provide evidence of the influence of different e‐business technologies on capital productivity (CP). Productivity measurement is a useful tool to gauge business performance. However, currently there is little empirical evidence to support the impact of e‐business technologies on productivity.

In this paper, an empirical investigation of 132 small and medium enterprises (SMEs) in the UK telecommunication sector was carried out, using a hierarchical regression. In doing so, three different types of technologies that may be associated with e‐business (i.e. internet‐based applications, groupware applications, and collective systems) were considered.

The main findings are that any improvement in CP is significantly influenced by groupware applications and collective systems. Therefore, the UK SMEs and other large companies might be …