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Adoption of e-business: patterns and consequences of network externalities

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  • Schade, Christian
  • Köllinger, Philipp

Abstract

The paper analyzes the adoption of various e-business technologies. Strong empirical evidence is found for the existence of increasing returns to adoption due to indirect network externalities between related technologies. If a company is close to the technological frontier, its probability of adoption increases. The empirical analysis is based on more than 5,000 observations from a cross-sectional European enterprise survey conducted in June 2002. A classification and regression tree (CART) is used to illustrate technological complementarities and their effect for the adoption probability of a firm.

Suggested Citation

  • Schade, Christian & Köllinger, Philipp, 2004. "Adoption of e-business: patterns and consequences of network externalities," Papers 2004,05, Humboldt University of Berlin, Center for Applied Statistics and Economics (CASE).
    • Handle: RePEc:zbw:caseps:200405
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    More about this item

    Keywords

    Technology Adoption; Path Dependence; Classification Trees;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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