The current study sought empirical evidence on the effect of E-business usage towards business performance in the Malaysian service industry. Applying the concept of the balanced scorecard, the current study examined the impact of E-business usage towards business performance based on four perspectives of impact on financial, impact on customers, impact on internal process, and impact on learning and growth.The current study also takes into consideration the influence of a moderating variable (E-business experience) to further understand how E-business value creations varied depending on the amount of time spent by companies to engage in E-business. The study focused on online tourism, financial and transportation service sectors in seeking evidences of E-business practices and its implications on the service industry. Results suggested that E-business usage and business performance were closely linked. Research findings had also demonstrated that experience in E-business plays a significant role as a moderator in the usage-performance relationship.

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