The study aimed at investigating the impact of e-business on small and medium enterprises (SMEs) operational performance in terms of business flexibility, business quality, and business costs. Research data was harvested via an online questionnaire developed based on previous related works and administered to a sample consisting of 500 owners and managers of industrial and commercial SMEs in Saudi Arabia. Using SmartPLS software, the results pointed out that e-business exerts a significant positive impact on the overall SMEs operational performance. Particularly, the results revealed that e-business results in positive effects on business flexibility, business quality, and business costs. It was observed that the greater impact of e-business was on business flexibility while the impact of e-business on business quality and business costs is roughly similar. These findings suggest that the current SMEs are highly concerned with customer-oriented issues such as marketing channels, customer needs and communications, and on-time delivery. Based on these results, it was concluded that SMEs can use e-business solutions to boost their business operational capabilities with reference to flexibility, quality, and cost.