Determinants of E-Business Use in U.S. Firms

• Published in: International journal of electronic commerce Vol. 10; no. 4; pp. 9 - 45
• Main Authors: Hsu, Pei-Fang, Kraemer, Kenneth L., Dunkle, Debora
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 01.06.2006; M. E. Sharpe, Inc; Taylor & Francis Ltd
• Subjects: Business innovation; Business models; Business structures; Diffusion theory; E-business; Electronic commerce; Globalization; Information technology; innovation; Innovation adoption; Innovation diffusion; innovation implementation; Innovations; Internet; Studies; Technological innovation; Variance analysis; United States > US
• ISSN: 1086-4415; 1557-9301
• DOI: 10.2753/JEC1086-4415100401

The factors leading to variations in e-business use among U.S. firms are identified. Building on diffusion of innovation theory, an integrated model is developed that explains the relative influence of eight known determinants. Diversity and volume of e-business use are empirically investigated using a sample of 294 firms. The analysis demonstrates that (1) considering the diversity of e-business use, pressure from trading partners is the most important driver, (2) when e-business volume is investigated, government pressure emerges as the strongest factor, (3) government promotion may not have much effect on the diversity of e-business use by private companies, but does significantly influence the volume of e-business use by firms doing business with the government, and (4) the United States has a positive regulatory environment for supporting e-business. Taken together, these findings on the multidimensionality of e-business use show that diversity and volume are not only different measures of e-business use, but also have different determinants. The integrated model provides a more comprehensive explanation of e-business use and could serve as a foundation for future research on interorganizational systems.