Abstract
This work aims to explain firms’ decisions to adopt Internet-based e-commerce, and the extent to which the adopters subsequently implement e-commerce to commercialize their products and services. We examine various types of factors previously considered by the literature (competitive environment, organizational characteristics, strategic orientation, innovative capacity, managers’ characteristics, IT equipment possessed and the use made of it). The analytical model developed here on the basis of a sample of 2,038 firms suggests that the factors influencing the adoption decision are different from those that eventually influence the results of firms’ commercial operations on the Internet. Likewise, we discuss the contribution of each type of determinant and the implications.
Similar content being viewed by others
References
Achrol, R. S., & Kotler, P. (1999). Marketing in the network economy. Journal of Marketing, 63(4), 146–163.
Arnott, D. C., & Bridgewater, S. (2002). Internet, interaction and implications for marketing. Marketing Intelligence & Planning, 20(2), 86–95.
Atuahene-Gima, K. (1996). Market orientation and innovation. Journal of Business Research, 35(2), 93–103.
Auger, P., & Gallaugher, J. M. (1997). Factors affecting the adoption of an Internet-based sales presence for small business. The Information Society, 13(1), 55–74.
Avlonitis, G. J., & Gounaris, S. P. (1999). Marketing orientation and its determinants: An empirical analysis. European Journal of Marketing, 33(11/12), 1003–1037.
Avlonitis, G. J., Kouremenos, A., & Tzokas, N. (1994). Assessing the innovativeness of organizations and its antecedents: Project Innovstrat. European Journal of Marketing, 28(11), 5–28.
Benjamin, R. I., & Wingand, R. T. (1995). Electronic markets and virtual value chains on the information highway. Sloan Management Review, 36(2), 62–72.
Bertschek, I., & Fryges, H. (2002). The adoption of business-to-business e-commerce: Empirical evidence for German companies. ZEV Discussion Paper, 02-05. Mannheim, Germany: Centre for European Economic Research. Available at ftp://ftp.zew.de/pub/zew-docs/dp/dp0205.pdf.
Blattberg, R. C., & Deighton, J. (1991). Interactive marketing: Exploiting the age of addressability. Sloan Management Review, 33(1), 5–14.
Brentani, U. D. (1989). Success and failure in new industrial services. Journal of Product Innovation Management, 6(4), 239–258.
Brynjolfsson, E., Malone, T., Gurbaxani, V., & Kambil, A. (1994). Does information technology lead to smaller firms? Management Science, 40(12), 1628–1644.
Cagliano, R., Caniato, F., & Spina, G. (2003). E-business strategy. How companies are shaping their supply chain through the Internet. International Journal of Operations & Production Management, 23(10), 1142–1162.
Chaffey, D., Mayer, R., Johnston, K., & Ellis-Chadwich, F. (2003). Internet marketing. Strategy, implementation and practice. Harlow, UK: Prentice Hall.
Chan, C., & Swatman, P. M. C. (2000). From EDI to Internet commerce: The BHP Steel experience. Internet Research: Electronic Networking Applications and Policy, 10(1), 72–82.
Chappell, C., & Feindt, S. (2000). Analysis of e-commerce practice in SMEs. Communications & Strategies, 37(1), 47–70.
Chaston, I., & Mangles, T. (2002). E-commerce in small UK manufacturing firms: A pilot study on internal competencies. Journal of Marketing Management, 18(3/4), 341–360.
Chen, W. H. (1999). Manufacturing strategies of networked-based small firms: Observations on the textile industry in Taiwan. Journal of Small Business Management, 37(2), 46–62.
Cope, O., & Waddell, D. (2001). An audit of leadership styles in e-commerce. Managerial Auditing Journal, 16(9), 523–529.
Corbitt, B. J. (2000). Developing intraorganizational electronic commerce strategy: An ethnographic study. Journal of Information Technology, 15(2), 119–130.
Coviello, N. E., & Munro, H. J. (1995). Growing the entrepreneurial firm: Networking for international marketing development. European Journal of Marketing, 29(7), 49–57.
Daniel, E., Wilson, H., & Myers, A. (2002). Adoption of e-commerce by SMEs in the UK. International Small Business Journal, 20(3), 253–270.
Doherty, N. F., Ellis-Chadwick, F., & Hart, C. A. (1999). Cyber retailing in the UK: The potential of the Internet. International Journal of Retail & Distribution Management, 27(1), 22–36.
Downs, G. W., & Mohr, L. B. (1976). Conceptual issues in the study of innovation. Administrative Science Quarterly, 21(4), 700–714.
Durkin, M., & McGowan, P. (2001). ‘Net effect’ – Views from the periphery: Exploring the ole and importance of the Internet on marketing activity in entrepreneurial firms. Irish Marketing Review, 14(1), 15–25.
Dutta, S., Kwan, S., & Segev, A. (1997). Transforming business in the marketspace: Strategic marketing and customer relationships. In CITM Working Paper, 97-WP-1023. Berkeley, CA: Fisher Center for Information Technology and Marketplace Transformation.
Eid, R., & Trueman, M. (2004). Factors affecting the success of business-to-business international marketing (B-to-B IIM): An empirical study of UK companies. Industrial Management & Data Systems, 104(1), 13–30.
Eid, R., Trueman, M., & Ahmed, A. M. (2002). A cross-industry review of B2B critical success factors. Internet Research: Electronic Networking Applications and Policy, 12(2), 110–123.
Feindt, S., Jeffcoate, J., & Chappell, C. (2002). Identifying success factors for rapid growth in SME e-commerce. Small Business Economics, 19(1), 51–62.
Fichman, R. G. (1992). Information technology diffusion: A review of empirical research. In Proceedings of the Thirteenth International Conference on Information Systems (pp. 195–206). Dallas, Texas.
Fichman, R. G. (2000). The diffusion and assimilation of information technology innovations. In R. W. Zmud, (Ed.), Framing the domain of IT management (pp. 105–127). Cincinnati, OH: Pinnaflex Educational Resources.
Fichman, R. G., & Kemerer, C. F. (1993). Toward a theory of the adoption and diffusion of software process innovations. In L. Levine (Ed.), Proceedings of IKIP conference on diffusion, transfer and implementation of information technology (pp. 23–30).
Fichman, R. G., & Kemerer, C. F. (1997). The assimilation of software process innovations: An organizational learning perspective. Management Science, 43(10), 1345–1363.
Fillis, I., Johannson, U., & Wagner, B. (2004). Factors impacting on e-business adoption and development in the smaller firm. International Journal of Entrepreneurial Behaviour & Research, 10(3), 178–191.
Grover, V., & Goslar, M. D. (1993). The initiation, adoption, and implementation of telecommunications technologies in U.S. organizations. Journal of Management Information Systems, 10(1), 141–163.
Grover, V., Fiedler, K., & Teng, J. (1997). Empirical evidence on Swanson’s tri-core model of information systems innovation. Information Systems Research, 8(3), 273–287.
GVU Center (1999). Tenth WWW User Survey. GVU’s WWW User Surveys. Available at http://www.gvu.gatech.edu/gvu/user_surveys.
Hoffman, D. L., & Novak, T. P. (1996). Marketing in hypermedia computer-mediated environments: Conceptual foundations. Journal of Marketing, 60(3), 50–69.
Hsieh, C. H., & Kowang, S. P. (1996). An observation of the growth of R&D capabilities of small business in Taiwan: A case of CNC-controller manufacturer. Journal of Technology Management, 1(1), 1–21.
Jeffcoate, J., Chappell, C., & Feindt, S. (2002). Best practice in SMEs adoption of e-commerce. Benchmarking: An International Journal, 9(2), 122–132.
Kim, C., & Galliers, R. D. (2004). Toward a diffusion model for Internet systems. Internet Research: Electronic Networking Applications and Policy, 14(2), 155–166.
Kimberly, J. R., & Evanisko, M. J. (1981). Organizational innovation: The influence of individual, organizational and contextual factors on hospital adoption of technological and administrative innovations. Academy of Management Journal, 24(4), 689–713.
King, W. R., & Teo, T. S. H. (1996). Key dimensions of facilitators and inhibitors for the strategic use of information technology. Journal of Management Information Systems, 12(4), 35–53.
Knight, G. A., & Cavusgil, S. T. (1996). The born global firm: A challenge to traditional internationalisation theory. Advances in International Marketing, 8, 11–26.
Kula, V., & Tatoglu, E. (2003). An exploratory study of Internet adoption by SMEs in an emerging market economy. European Business Review, 15(5), 324–333.
Lee, C. S. (2001). An analytical framework for evaluating e-commerce business models and strategies. Internet Research: Electronic Networking Applications and Policy, 11(4), 349–359.
Lee-Kelley, L., Gilbert, D., & Mannicom, R. (2003). How e-CRM can enhance customer loyalty. Marketing Intelligence & Planning, 21(4), 239–248.
MacGregor, R. C. (2004). The role of strategic alliances in the ongoing use of electronic commerce technology in regional small business. Journal of Electronic Commerce in Organizations, 2(1), 1–14.
Matlay, H., & Addis, M. (2003). Adoption of ICT and e-commerce in small businesses: An HEI-based consultancy perspective. Journal of Small Business and Enterprise Development, 10(3), 321–335.
McGowan, P., & Durkin, M. G. (2002). Toward an understanding of Internet adoption at the marketing/entrepreneurship interface. Journal of Marketing Management, 18(3/4), 361–377.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20–35.
O’Keefe, R. M., O’Connor, G., & Hsiang-Jui, K. (1998). Early adopters of the web as a retail medium: Small company winners and losers. European Journal of Marketing, 32(7/8), 629–643.
Parente, S. L., & Prescott, E. C. (1994). Barriers to technology adoption and development. Journal of Political Economy, 102(2), 298–321.
Phillips, L. A., Calantone, R., & Lee, M. (1994). International technology adoption: Behaviour structure, demand certainty and culture. Journal of Business & Industrial Marketing, 9(2), 16–28.
Poon, S., & Swatman, P. (1997). Small business use of the Internet. Findings from Australian case studies. International Marketing Review, 14(5), 385–402.
Poon, S., & Swatman, P. (1999). An exploratory study of small business Internet commerce issues. Information & Management, 35(1), 9–18.
Premkumar, G., Ramamurthy, K., & Nilakanta, S. (1994). Implementation of electronic data interchange: An innovation diffusion perspective. Journal of Management Information Systems, 11(2), 157–186.
Ramamurthy, K., Premkumar, G., & Crum, M. R. (1999). Organizational and interorganizational determinants of EDI diffusion and organizational performance: A casual model. Journal of Organizational Computing and Electronic Commerce, 9(4), 253–285.
Raymond, L. (2001). Determinants of web site implementation in small business. Internet Research: Electronic Networking Applications and Policy, 11(5), 411–422.
Riquelme, H. (2002). Commercial internet adoption in China: Comparing the experiences of small, medium and large businesses. Internet Research: Electronic Networking Applications and Policy, 12(3), 276–286.
Rodriguez, I., & Ryan, G. (2000). The WWW in the food and beverage sector in Spain. International Advances in Economic Research, 6(4), 699–709.
Rothwell, R. (1977). The characteristics of successful innovators and technically progressive firms. R&D Management, 7(3), 191–206.
Sadowski, B. M., Maitland, C., & Dongen, J. V. (2002). Strategic use of the Internet by small and medium-sized companies: An exploratory study. Information Economics and Policy, 14(1), 75–93.
Shapiro, C., & Varian, H. R. (1999). Information rules: A strategic guide to the network economy. Boston, MA: Harvard Business School Press.
Shaw, M. J. (2000). Electronic commerce: State of the art. In M. J. Shaw, R. W. Blanning, T. J. Strader, & A. B. Whinston (Eds.), Handbook on electronic commerce. Berlin Heidelberg New York: Springer.
Strauss, J., El-Ansary, A. I., & Frost, R. (2003). E-marketing on the internet. Upper Saddle River, NJ: Prentice Hall.
Sung, T. K., & Gibson, D. V. (2005). Critical success factors in electronic commerce: Korean experiences. Journal of Organizational Computing and Electronic Commerce, 15(1), 19–34.
Tan, M., & Teo, T. S. H. (1998). Factors influencing the adoption of the Internet. International Journal of Electronic Commerce, 2(3), 5–18.
Thong, J. Y. L. (1999). An integrated model of information systems adoption in small business. Journal of Management Information Systems, 15(4), 187–214.
Vadapalli, A., & Ramamurthy, K. (1997). Business use of the internet: An analytical framework and exploratory case study. International Journal of Electronic Commerce, 2(2), 71–94.
Vilaseca, J., & Torrent, J. (2004). ICTs and transformations in Catalan companies. Barcelona, Spain: Universitat Oberta de Catalunya and Generalitat de Catalunya.
Walczuch, R., Braven, G. V., & Lundgren, H. (2000). Internet adoption barriers for small firms in the Netherlands. European Management Journal, 18(5), 561–571.
Wang, S., & Cheung, W. (2004). E-business adoption by travel agencies: Prime candidates for mobile e-business. International Journal of Electronic Commerce, 8(3), 43–63.
Webster, F. E. (1992). The changing role of marketing in the corporation. Journal of Marketing, 56(4), 1–17.
Yap, C. S. (1990). Distinguishing characteristics of organizations using computers. Information & Management, 18(2), 97–107.
Author information
Authors and Affiliations
Corresponding author
Appendices
Appendix 1
Appendix 2
Rights and permissions
About this article
Cite this article
Vilaseca-Requena, J., Torrent-Sellens, J., Meseguer-Artola, A. et al. An Integrated Model of the Adoption and Extent of E-Commerce in Firms. Int Adv Econ Res 13, 222–241 (2007). https://doi.org/10.1007/s11294-006-9061-z
Received:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11294-006-9061-z