The research indicates no commonly-used theory appropriately explains small business adoption of e-business because each theory overlooks important aspects of small business characteristics. What seems to be the most noted theory in the literature for e-business strategy is Michael Porter's generic strategies matrix, which theorizes a company's success is reliant on its positioning strategy, which focuses on leveraging its strengths to assert successful operational outcomes.
Michael Porter suggests the strength of a company ought to be classified into two components: cost advantage and differentiation. How can differentiation strategies help achieve a competitive advantage for small e-businesses?