Despite the increasing significance of e-business worldwide and construction market leaders developing innovative e-business applications, the widespread uptake in the Australian construction industry is lagging. There has been considerable literature related to e-business adoption focusing on drivers and barriers to adoption. However, there has not been an investigation that has applied fundamental supply chain theory concepts. In this paper a reflexive capability model for the individual firm in relation to e-business is developed which relies upon merging economic and social practices through an industrial organization economic theoretical lens and social science theories of communication. The reflexivecapability model proposed within this paper describes a framework for theorization of the different degrees of e-business adoption exhibited by individual firm’s and accounts for social-cultural, organisational-structural, communicative and economic (market and supplychain) barriers, influences and pressures to adopt e-business.The model is proposed for the construction supply chain to enable awareness, engagement and realization of e-business technology and achieve long term construction e-business sustainability.<br /
