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A Multivariate Probit Analysis of Korean Firms Information System Adoption: An Empirical Analysis on the Determinants of the Adoption and Complementarity Among the Information Systems

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Author Info

  • Jae Young Choi
  • Yeonbae Kim

    ()

  • Yungman Jun
  • Yunhee Kim

    (Technology Management, Economics, and Policy Program (TEMEP); Seoul National University)

Abstract

As the ICT industry continues to grow, firms worldwide continue to adopt and use enterprise information systems. Although there is some existing research on the determinants of firms¡¯ information system adoption, most such studies do not take into account a firm¡¯s adoption of more than one information system (multiple adoption behaviour). Moreover, small sample sizes have hindered the ability of many previous empirical studies of information system adoption to report strongly reliable results. Using a Bayesian multivariate probit approach, this study examines a sample of 438 Korean companies covering a variety of business areas, including manufacturing, to investigate the determinants of firms¡¯ adoption of and the substitutionary patterns among four major information systems: enterprise resource planning (ERP), customer relationship management (CRM), e-buy, and groupware. As a result, the epidemic effect generally outweighs the size effect and putting more effort into the intensity of information strategy planning is very influential on the adoption of information systems. And a relatively strong complementary relationship exists between ERP adoption and CRM adoption, and between e-buy adoption and groupware adoption.

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Bibliographic Info

Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 200926.

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Length: 19 pages
Date of creation: Oct 2009
Date of revision: Nov 2009
Publication status: Published in Emerald, Industrial Management and Data Systems (later version of this paper)
Handle: RePEc:snv:dp2009:200926

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Related research

Keywords: Information system adoption; Bayesian multivariate probit; ERP; CRM; e-buy; groupware; Korea.;

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  2. Heinz Hollenstein & Martin Woerter, 2004. "The Decision to Adopt Internet-based E-Commerce : An Empirical Analysis Based on Swiss Firm-level Data," KOF Working papers 04-89, KOF Swiss Economic Institute, ETH Zurich.
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  5. Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc.
  6. Baltas, George, 2004. "A model for multiple brand choice," European Journal of Operational Research, Elsevier, vol. 154(1), pages 144-149, April.
  7. Bocquet, Rachel & Brossard, Olivier & Sabatier, Mareva, 2007. "Complementarities in organizational design and the diffusion of information technologies: An empirical analysis," Research Policy, Elsevier, vol. 36(3), pages 367-386, April.
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