PERTANIKA JOURNAL OF TROPICAL AGRICULTURAL SCIENCE

A sample of 295 firms in Canada across various sectors was used for testing the relationship between Net-enabled Business Innovation Cycle (NEBIC) and innovation in online business models. These firms were categorised as sectors with different levels of online selling adoption, online buying orientations and firms with different sizes. Quantitative analysis and SEM results revealed a reasonable fit between data collected and the model used: chi2 (4757.63), chi2 / DF (2.24), RMSEA (0.08), CFI (0.86), and TLI (0.86). The multi-group analysis showed statistically significant evidence that online seller's differentiated firms with smaller sizes and firms with no prior online buying to demonstrate the relationship between Net-enablement capability and the choice to sell online. However, firms from different sectors with different online selling adoption rates showed statistically insignificant differences. Therefore, when considering the adoption of new technologies such as online selling, smaller firms with no prior online buying may produce better results in their business models regardless of their associated business sectors' level of online selling adoption rates.