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E-commerce diffusion: exploring the determinants of the adoption and extent of usage at firm-level


  • Ben Aoun - Peltier, Leila
  • Vicente Cuervo, Maria Rosalia


In the last years great attention has been paid to understand the factors driving ICT diffusion at firm-level. However, most studies have focused on the analysis of the adoption of the new technology and there is no much evidence on the intensity of use of ICT by firms. Within, this context this paper attempts to throw some light on such issue by presenting a joint-analysis of the adoption and extent of usage of e-commerce among Luxembourgish firms. In particular, the two sides of e-commerce are analyzed: epurchasing and e-selling. Results show that competitive pressures together with absorptive capacity and infrastructure are the main drivers of adoption. Regarding intensity, human capital and the type of competition faced by firms are key determinants. Additionally, there is some evidence that the Internet helps to overcome distance barriers only to a certain extent.

Suggested Citation

  • Ben Aoun - Peltier, Leila & Vicente Cuervo, Maria Rosalia, 2012. "E-commerce diffusion: exploring the determinants of the adoption and extent of usage at firm-level," MPRA Paper 49333, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:49333

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    References listed on IDEAS

    1. Stefanie Haller & Iulia Siedschlag, 2011. "Determinants of ICT adoption: evidence from firm-level data," Applied Economics, Taylor & Francis Journals, vol. 43(26), pages 3775-3788.
    2. 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.
    3. Bronwyn H. Hall, 2004. "Innovation and Diffusion," NBER Working Papers 10212, National Bureau of Economic Research, Inc.
    4. Hollenstein, Heinz & Woerter, Martin, 2008. "Inter- and intra-firm diffusion of technology: The example of E-commerce: An analysis based on Swiss firm-level data," Research Policy, Elsevier, vol. 37(3), pages 545-564, April.
    5. 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.
    6. Fuentelsaz, Lucio & Gomez, Jaime & Polo, Yolanda, 2003. "Intrafirm diffusion of new technologies: an empirical application," Research Policy, Elsevier, vol. 32(4), pages 533-551, April.
    7. Silvia Fabiani & Fabiano Schivardi & Sandro Trento, 2005. "ICT adoption in Italian manufacturing: firm-level evidence," Industrial and Corporate Change, Oxford University Press, vol. 14(2), pages 225-249, April.
    8. Battisti, Giuliana & Canepa, Alessandra & Stoneman, Paul, 2009. "e-Business usage across and within firms in the UK: profitability, externalities and policy," Research Policy, Elsevier, vol. 38(1), pages 133-143, February.
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    10. Jacob Nielsen Arendt & Anders Holm, 2006. "Probit Models with Binary Endogenous Regressors," CAM Working Papers 2006-06, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    11. Battisti, Giuliana & Iona, Alfonsina, 2009. "The intra-firm diffusion of complementary innovations: Evidence from the adoption of management practices by British establishments," Research Policy, Elsevier, vol. 38(8), pages 1326-1339, October.
    12. 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.
    13. Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 107-129.
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    Cited by:

    1. Alex Coad & Nestor Duch-Brown, 2017. "Barriers to European cross-border E-commerce," JRC Working Papers on Digital Economy 2017-03, Joint Research Centre (Seville site).
    2. Falk, Martin & Hagsten, Eva, 2015. "E-commerce trends and impacts across Europe," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 357-369.

    More about this item


    e-commerce; Information and Communication Technologies (ICT); technology diffusion; Internet;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights


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