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E-business successes in traditional organizations have prompted much interest among researchers in many disciplines such as strategic management, information systems, and economics. However, the complexity of e-business implementation process has been overlooked, and it remains unclear. This paper investigates causal relationships among strategic initiative, information technology (IT)-related resources, and e-business capabilities; and their roles in the implementation process. From the resource-based view (RBV) of a firm and e-business strategic stand-point, we propose a model of e-business implementation process. We divide the process into four stages, and 11 hypotheses are developed in seeking relationships among six proposed constructs. Drawing from a sample of 56 enterprises within Hubei Province in China, we provide theoretical support for a critical causal link from e-business strategic initiatives to utilization of IT-related resources, and consequently, creating distinctive e-business capabilities. We find that information sharing capabilities are intermediate and transferable forces that help translating IT-related organizational resources into the collaborative process capabilities. The causal relationships expand our understanding of the dynamics of organizational transformation enabled by the Internet. The practical implications offer managers guidelines to the roles played by strategy, resource, and capabilities for e-business success. It helps in recognizing the value of their potential contributions to the organization as a whole. [ABSTRACT FROM AUTHOR]