This paper seeks to report the results of an empirical study examining the value creation process of e-business (EB) applications from a supply chain perspective. A questionnaire was sent to procurement managers located in the German automotive supply chain. Interaction effects were examined through regression analyses to illustrate the moderating role of the suppliers' EB readiness in the value creation process throughout the supply chain. Based on the resource-based view (RBV) and previous research this study illustrates that EB applications (i.e. EB interaction applications, EB coordination applications and EB integration applications) have a significantly stronger positive impact on operational performance when a company's key suppliers are ready and willing to engage in EB (suppliers' EB readiness). Although research on the performance impact and business value of EB applications has advanced over the past years, there is still a scarcity of research taking a supply chain perspective on EB value. This study addresses this gap through reporting results of an empirical study examining the value creation of EB applications through the moderating role of suppliers' EB readiness on the EB applications-operational performance relationship throughout the supply chain. This paper will thus be beneficial for supply chain managers considering investing in EB systems and will support further research in EB value creation in supply chains.