Exploring the Role of Government in Information Technology Diffusion

Abstract

By analyzing survey data from 1,211 firms across 14 industries in Shanghai, this study examines factors that influence information technology usage in Chinese firms applying a technology-organization-environment framework and institutional theory. This study provides an in-depth examination of governmental impact on Chinese firms’ IT adoption. Although government cannot directly influence firms’ IT adoption, it does so indirectly by influencing firms’ IT infrastructure construction and management. Firms’ IT infrastructure development and IT management decisions act as a mediator between government policies and firms’ IT adoption. Furthermore, firms adapt to governmental impact in distinct ways. The findings suggest that e-government approaches and government promotion policies have a significant impact on IT usage in manufacturing firms, in local firms, and in national-background firms.