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Explores the electronic commerce (e‐commerce) involvement of small and medium‐sized enterprises (SMEs) in terms of the strategic, operational, and performance aspects. Findings are reported from a survey of SMEs in northern California. The results show that SMEs tend to pursue e‐commerce strategies associated with customer base expansion and customer service consistent with their bricks‐and‐mortar competitive strategies and build e‐commerce operations consistent with their e‐commerce strategies. These e‐commerce strategies also contribute to the SMEs’ sales growth and profitability. However, e‐commerce strategy associated with purchasing management is the least favored alternative and does not affect profitability. The implication of the findings for managers and future research are discussed.