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Understanding the determinant factors of Internet business solutions adoption: the case of Portuguese firms

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  • Tiago Oliveira
  • Maria Fraga O. Martins

Abstract

The purpose of our article is to identify the determinants of Internet Business Solutions (IBS), using a representative sample of Portuguese business sector in 2006. This article is based on a theoretical framework in which the adoption of IBS is done in two stages. At the first stage, the firm decides to adopt or not a website; at the second stage, those who adopted a website decide on the level of IBS adoption. We considered that the determinants of the adoption decisions can be internal or external and that their effect may be different at the two adoption stages. Based on these assumptions, we develop and test an integrated model of IBS adoption allowing for sample selection. Our results show that the two adoption decisions are taken sequentially and that selectivity bias is not present in our sample. Our findings also suggest that the relevant drivers of website and the level of IBS adoption are not necessarily the same.

Suggested Citation

  • Tiago Oliveira & Maria Fraga O. Martins, 2011. "Understanding the determinant factors of Internet business solutions adoption: the case of Portuguese firms," Applied Economics Letters, Taylor & Francis Journals, vol. 18(18), pages 1769-1775, December.
  • Handle: RePEc:taf:apeclt:v:18:y:2011:i:18:p:1769-1775
    DOI: 10.1080/13504851.2011.564116
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    References listed on IDEAS

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    1. Hollenstein, Heinz, 2004. "Determinants of the adoption of Information and Communication Technologies (ICT): An empirical analysis based on firm-level data for the Swiss business sector," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 315-342, September.
    2. Battisti, Giuliana & Stoneman, Paul, 2005. "The intra-firm diffusion of new process technologies," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 1-22, February.
    3. Bang Nam Jeon & Kyeong Seok Han & Myung Jin Lee, 2006. "Determining factors for the adoption of e-business: the case of SMEs in Korea," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1905-1916.
    4. Ruby Roy Dholakia & Nir Kshetri, 2004. "Factors Impacting the Adoption of the Internet among SMEs," Small Business Economics, Springer, vol. 23(4), pages 311-322, November.
    5. Alfonso Miranda & Sophia Rabe-Hesketh, 2006. "Maximum likelihood estimation of endogenous switching and sample selection models for binary, ordinal, and count variables," Stata Journal, StataCorp LP, vol. 6(3), pages 285-308, September.
    6. Riccardo Lucchetti & Alessandro Sterlacchini, 2004. "The Adoption of ICT among SMEs: Evidence from an Italian Survey," Small Business Economics, Springer, vol. 23(2), pages 151-168, September.
    7. Reid, Gavin C & Smith, Julia A, 2000. "What Makes a New Business Start-Up Successful?," Small Business Economics, Springer, vol. 14(3), pages 165-182, May.
    8. Anna Giunta & Francesco Trivieri, 2007. "Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1325-1334.
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