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Acceleration of technology adoption within firms -- Emperical evidence from e-business

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Author Info
Koellinger, Ph.D.
Schade, C. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

This paper studies the diffusion of multiple related technologies among firms. The results suggest an endogenous acceleration mechanism for technology adoption: The more advanced a firm is in using a particular set of technologies, the more likely it is to adopt additional related technologies. We show that such a mechanism can occur under fairly general circumstances. If firms are not ex ante identical, the endogenous acceleration mechanism suggests a growing divergence in the technological endowment of firms in the early phases after the emergence of a new technological paradigm. The theoretical predictions are tested with a dataset that records the adoption times of various e- business technologies in a large sample of firms from 10 different industry sectors and 25 European countries. The results show that the probability of adoption increases with the number of previously adopted e-business technologies. Evidence for a growing digital divide among the companies in the sample is demonstrated for the period from 1994-2002.

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File URL: http://hdl.handle.net/1765/11809
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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2008-013-ORG Revision_Date: 2009-09-29.

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Date of creation: 03 Feb 2009
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Handle: RePEc:dgr:eureri:1765011809

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Related research
Keywords: technology adoption; technological change; complementarity; hazard rate model; IT;

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    Other versions:
  3. Brynjolfsson, Erik. & Hitt, Lorin M., 1995. "Paradox lost? : firm-level evidence on the returns to information systems spending," Working papers 3786-95., Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
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  5. Stoneman, Paul & Kwon, Myung-Joong, 1994. "The Diffusion of Multiple Process Technologies," Economic Journal, Royal Economic Society, vol. 104(423), pages 420-31, March. [Downloadable!] (restricted)
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