Abstract Globalization and technology effects emerge to spur firms around the globe to embrace e‐business practices. Nevertheless, while many studies have focused on identifying factors that might influence e-business adoption to ensure success and avoid failure in developed countries, investigating e-readiness influential factors among small and larger firms in the e-service industry and more specifically in developing countries haven’t been investigated widely enough. The major objective of this research is to understand how e-readiness affects the e-business adoption by shedding the light on the importance of the firms’ size. A survey data was collected from 261 senior managers, among which 42.5% where identified as managers operating in small and medium enterprises (SME) and 57.5% in large enterprises (LE). The results indicate that large enterprises are influenced by external and organizational factors while smaller enterprises are influenced only by organizational factors.