Factors Affecting E-Business Diffusion in Organizations: Differences between Developed and Developing Countries

Grounded in the innovation process model and the technology-organization-environment framework, we develop a research model to investigate factors influencing e-business diffusion in organizations. We formulate a series of hypotheses associated with seven contextual factors (technology readiness, technology integration, firm size, global scope, managerial obstacle, competition intensity, and regulatory environment) that may shape organizational assimilation of e-business. The research model is tested using survey data (1,857 firms) collected in three major industries from ten countries. Based on structural equation modeling, our empirical analyses have identified contextual factors that may have varying effects at different assimilation stages and in different economic environments. The paper concludes with a discussion on major findings and implications.