E-commerce is growing up very fast all over the world and become important issues in many studies. Thetourism industry is the second largest contributor to the economy after the manufacturing sector in Malaysia.Therefore E-commerce cannot be excluded as this technology has huge impact on tourism industry. This paperaddresses the role of E-commerce usage for achieving organizational capabilities among hotel in Malaysia. Thefinding shows the E-commerce business network is higher with a mean 3.48. The study also found that there is acorrelation between organization performance with E-commerce business network, and E-commercecompetency. This research also employs stepwise regression analysis to look at dominant factor in predictingorganizational performance. This research contribute to both academic research and management practice as itprovide comprehensive impact of how E-commerce adoption on organizational performance at least in case ofTourism industry in a small developing economy like Malaysia.