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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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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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  • 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.
    • Handle: RePEc:kof:wpskof:04-89
    DOI: 10.3929/ethz-a-004871562
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    Cited by:

    1. Giuliana Battisti & Heinz Hollenstein & Paul Stoneman & Martin Woerter, 2007. "Inter And Intra Firm Diffusion Of Ict In The United Kingdom (Uk) And Switzerland (Ch) An Internationally Comparative Study Based On Firm-Level Data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(8), pages 669-687.
    2. Stoneman, Paul & Battisti, Giuliana, 2010. "The Diffusion of New Technology," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 733-760, Elsevier.
    3. Jenny Meyer, 2011. "Workforce age and technology adoption in small and medium-sized service firms," Small Business Economics, Springer, vol. 37(3), pages 305-324, October.
    4. Jae Young Choi & Yeonbae Kim & Yungman Jun & Yunhee Kim, 2009. "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," TEMEP Discussion Papers 200926, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
    5. Jane Bourke & Stephen Roper, 2012. "In with the new: the determinants of prescribing innovation by general practitioners in Ireland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(4), pages 393-407, August.

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    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;
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