Influences on the corporate adoption of Web technology

Abstract

Virtually every brick-and-mortar firm has a Web site today, but this has not always been the case. Some companies quickly established a Web presence with thousands of pages of information available on their sites and even early e-commerce features. Others started with a simple Web site establishing a “front window” on the Web. Some companies did not appear on the Web until much later when it became essential for all businesses to do so. This article explores the roles of senior management and firm resources in the early adoption of Web technology. We endeavor to determine what distinguished firms that embraced the Web and established an early Web presence from firms that did not consider the Web important. Although our data, collected during 1996–1997, is somewhat dated, the results of this study, particularly findings concerning management’s role in adoption, can be generalized to other IT innovations besides Web sites, including electronic commerce capabilities, enterprise software, and supply chain management systems, as well as future technologies yet to appear. Previous research suggests that predicting a firm’s response to new technology necessitates an examination of the leadership and strategic direction of senior management. A consistent finding in early research on system implementation is that management support is related to success [9]. A firm that emphasizes technology as a part of its strategy is likely to have recognized the potential importance of the Internet and to have established a site. A firm that has not created a site for the general public is unlikely to have established an intranet or an extranet. Also, firms with more resources are more likely to invest in a Web presence than firms with fewer resources. Knowledge is a major resource, and resource-rich firms are more likely to have personnel knowledgeable about technology and interested in innovation.