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The Corporate Digital Divide: Determinants of Internet Adoption

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  • Christopher Forman

Abstract

This paper shows how organizational, technical, and environmental factors affected firm decisions to adopt Internet technologies during the early years of the commercialization of the Internet. Organizations that had made prior investments in client/server networks had a higher likelihood of Internet adoption, however investments in proprietary or platform-specific client/server technologies raised the cost of switching from legacy systems. Small firms and those that were geographically concentrated were less likely to adopt.

Suggested Citation

  • Christopher Forman, 2002. "The Corporate Digital Divide: Determinants of Internet Adoption," WIDER Working Paper Series DP2002-89, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-89
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2002-89.pdf
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    Cited by:

    1. DeStefano, Timothy & Kneller, Richard & Timmis, Jonathan, 2018. "Broadband infrastructure, ICT use and firm performance: Evidence for UK firms," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 110-139.
    2. Chris Forman & Avi Goldfarb & Shane Greenstein, 2003. "How did Location Affect Adoption of the Commercial Internet? Global Village, Urban Density, and Industry Composition," NBER Working Papers 9979, National Bureau of Economic Research, Inc.
    3. Birba, Ousmane & Diagne, Abdoulaye, 2012. "Determinants of adoption of Internet in Africa: Case of 17 sub-Saharan countries," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 463-472.
    4. Cathles, Alison & Nayyar, Gaurav & Rückert, Désirée, 2020. "Digital technologies and firm performance: Evidence from Europe," EIB Working Papers 2020/06, European Investment Bank (EIB).
    5. Galang, Roberto Martin N., 2014. "Divergent diffusion: Understanding the interaction between institutions, firms, networks and knowledge in the international adoption of technology," Journal of World Business, Elsevier, vol. 49(4), pages 512-521.
    6. Inha Oh & Jungho Kim, 2023. "Frontiers and laggards: Which firms benefit from adopting advanced digital technologies?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 753-766, March.

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