In the first phase, factor analysis is conducted to identify the key factors representing the three groups of variables explaining the perceived benefits of e-business, obstacles to e-business adoption and business expectation. This helps to effectively extract useful information from the survey data and transform those data into a small number of variables/ components. Both the principal component method and maximum likelihood method using the varimax criterion are applied. The factor scores are estimated using the regression method. In the second phase, logistics regression is conducted using the factor scores obtained from the first phase as the inputs to further test the effect of different variables on the decision to adopt e-business. The logistics regression analysis in the second phase is much more manageable due to only a small number of variables involved.