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

Ben Aoun - Peltier, Leila and Vicente Cuervo, Maria Rosalia (2012): E-commerce diffusion: exploring the determinants of the adoption and extent of usage at firm-level.

Abstract

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: e-commerce, Information and Communication Technologies (ICT), technology diffusion, Internet
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights

References

Arduini, D., Nascia, L., and Zanfei, A. (2010). Complementary approaches to the diffusion of ICT: Empirical evidence on Italian firms. Working Paper Series in Economics, Mathematics and Statistics, WP‐EMS 2010/02, Faculta di Economia, Universita degli Studi di Urbino �Carlo Bo�.

Arendt, J.N., and Holm, A. (2006). Probit models with binary endogenous regressors. Working Paper Center for Applied Econometrics, WP2006‐06, Department of Economics, University of Copenhagen.

Baptista, R. (1999). The diffusion of process innovations: a selective review. International Journal of the Economics of Business, 6, 107‐130.

Battisti, G., and Iona, A. (2009). The intra‐firm diffusion of complementary innovations: Evidence from the adoption of management practices by British establishments. Research Policy, 38, 1326‐1339.

Battisti, G., and Stoneman, P. (2005). The intra‐firm diffusion of new process technologies. International Journal of Industrial Organisation, 23, 1‐22.

Battisti, G., Canepa, A., and Stoneman, P. (2004). Profitability, externalities and policy in the inter and intra firm adoption of new technology: the example of e‐business activities in the UK.Paper presented at the 8th conference of the European network on industrial policy (EUNIP),Birmingham, December 13‐15.

Battisti, G., Canepa, A., and Stoneman, P. (2009). e‐Business usage across and within firms in the UK: profitability, externalities and policy. Research Policy, 38, 133‐143.

Battisti, G., Hollenstein, H., Stoneman, P., and Woerter, M. (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 Technologies, 16, 669‐687.

Bayo‐Moriones, A., and Lera‐Lopez, F. (2007). A firm level analysis of determinants of ICT adoption in Spain. Technovation, 27, 352�66.

European Commission (2009). Online Commerce Roundtable. Report on Opportunities and barriers to online retailing. European Commission (2010). Digital Agenda for Europe (COM/2010/0245 f/2). Brussels: European Commission.

Fabiani, S., Schivardi, F., and Trento, S. (2005). ICT adoption in Italian manufacturing: firm level evidence. Industrial and Corporate Change, 14, 225‐249.

Fuentelsaz, L., Gomez, J., and Polo, Y. (2003). Intrafirm Diffusion of New Technologies: An Empirical Application. Research Policy, 32, 533‐551.

Geroski, P.A. (2000). Models of technology diffusion. Research Policy, 29,603‐625.

Giunta, A., and Trivieri, F. (2007). Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms. Applied Economics, 39, 1325�34.

Griliches, Z. (1957). Hybrid corn: an exploration in the economics of technical change. Econometrica, 48, 501‐522. Hair, J.F. Jr., Anderson, R.E., Tatham, R.L., and Black, W.C. (1955). Multivariate Data Analysis with Readings. London: Prentice Hall International.

Hall, B. (2004). Innovation and diffusion. NBER Working Paper 10212.

Haller, S.A., and Siedschlag, J. (2010). Determinants of ICT adoption: evidence from firm‐level data. Applied Economics, First published on: 05 November 2010.

Hollenstein, H. and Woerter, M. (2008). Inter‐ and intra‐firm diffusion of technology: The example of E‐commerce. An analysis based on Swiss firm‐level data. Research Policy, 37, 545‐564.

Karshenas, M., and Stoneman, P. (1995). Technological diffusion. In P. Stoneman (Ed.): Handbook of the Economics of Innovation and Technological Change (pp. 263‐297). Oxford:Blackwell.

OECD (2009a). Guide to measuring the information society. Paris: OECD.

OECD (2009b). OECD Conference on empowering e‐consumers strengthening consumer protection in the internet economy. Background Report. Paris: OECD.

OECD and Eurostat (2005). Oslo manual: guidelines for collecting and interpreting innovation data. Paris: OECD. Porter, M. (1990). The Competitive Advantage of Nations. New York: Free Press.

STATEC (2006). Community innovation survey. Luxembourg: STATEC.

STATEC (2007). Community survey on ICT usage and e‐commerce in enterprises. Luxembourg: STATEC.

Wooldridge, J.M. (2006). Introductory Econometrics. A Modern Approach. Thomson South‐Western.