Determinants of e-business diffusion: A test of the technology diffusion perspective

Abstract

Based on the technology diffusion theory and the technology-organization-environment (TOE) framework, this study develops a research model to study the determinants of e-business diffusion. The research model examines the influence of technological context (IS infrastructure and IS expertise), organizational context (organizational compatibility and expected benefits of e-business) and environmental context (competitive pressure and trading partner readiness) on e-business diffusion. E-business diffusion is characterized by two dimensions: internal integration and external diffusion. Data gathered from 163 IS executives in large Taiwanese firms were employed to test the relationships between the research model constructs using a structural equation modeling (SEM) approach. Among the TOE factors, the results reveal that IS infrastructure, IS expertise, expected benefits of e-business, and competitive pressure are important factors shaping e-business diffusion. Implications for practice and research are discussed.