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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

Author

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  • Jae Young Choi
  • Yeonbae Kim

    ()

  • Yungman Jun
  • Yunhee Kim

    (Technology Management, Economics, and Policy Program (TEMEP); Seoul National University)

Abstract

As the ICT industry continues to grow, firms worldwide continue to adopt and use enterprise information systems. Although there is some existing research on the determinants of firms¡¯ information system adoption, most such studies do not take into account a firm¡¯s adoption of more than one information system (multiple adoption behaviour). Moreover, small sample sizes have hindered the ability of many previous empirical studies of information system adoption to report strongly reliable results. Using a Bayesian multivariate probit approach, this study examines a sample of 438 Korean companies covering a variety of business areas, including manufacturing, to investigate the determinants of firms¡¯ adoption of and the substitutionary patterns among four major information systems: enterprise resource planning (ERP), customer relationship management (CRM), e-buy, and groupware. As a result, the epidemic effect generally outweighs the size effect and putting more effort into the intensity of information strategy planning is very influential on the adoption of information systems. And a relatively strong complementary relationship exists between ERP adoption and CRM adoption, and between e-buy adoption and groupware adoption.

Suggested Citation

  • 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.
  • Handle: RePEc:snv:dp2009:200926
    as

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    References listed on IDEAS

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    1. 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.
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    8. Bocquet, Rachel & Brossard, Olivier & Sabatier, Mareva, 2007. "Complementarities in organizational design and the diffusion of information technologies: An empirical analysis," Research Policy, Elsevier, vol. 36(3), pages 367-386, April.
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    Keywords

    Information system adoption; Bayesian multivariate probit; ERP; CRM; e-buy; groupware; Korea.;

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