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The Decision to Adopt Internet-based E-Commerce : An Empirical Analysis Based on Swiss Firm-level Data

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Author Info
Heinz Hollenstein () (KOF Swiss Economic Institute, ETH Zürich)
Martin Woerter () (KOF Swiss Economic Institute, ETH Zürich)

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Abstract

The paper aims at explaining empirically the diffusion of E-commerce based on two largescale sample surveys conducted in the Swiss economy. The paper adds to previous work in two ways: firstly, we estimate separate models for E-selling and E-purchasing, and, secondly, we distinguish between inter-firm diffusion (i.e. technology adoption) and intra-firm diffusion (i.e. intensity of technology use). It turns out that the pattern of explanation strongly differs between the two types of E-commerce as well as the two types of diffusion. Therefore, further studies dealing with the diffusion of E-commerce should differentiate along these two dimensions. Besides, it is shown that institutional, technological and economic uncertainty as well as adjustment costs, which are neglected in most studies of diffusion, are important explanatory variables. Moreover, it turned out that “rank effects” are clearly more important drivers of adoption and intra-firm diffusion of the two types of E-commerce than “epidemic effects”, which are of some importance only in case of adoption.

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Publisher Info
Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 04-89.

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Length: 49 pages
Date of creation: Jul 2004
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Handle: RePEc:kof:wpskof:04-89

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Related research
Keywords: Technology diffusion; Inter- vs. intra-firm diffusion; E-commerce; E-selling vs. E-purchasing; Information and Communication Technologies (ICT); Rank and epidemic effects of diffusion;

Find related papers by JEL classification:
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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