Information Systems Research
Vol. 16, No. 1, March 2005, p.61-84
Post-Adoption Variations
in Usage and Value of E-Business by Organizations:
Cross-Country Evidence
from the Retail Industry
Kevin Zhu*
and Ken Kraemer
Abstract
Grounded in the innovation diffusion literature and
the resource-based theory, this paper develops an integrative research model
for assessing the diffusion and consequence of e-business at the firm level. Unlike the typical focus on adoption as found in the literature,
we focus on post-adoption stages, i.e., actual usage and value creation. The model thus moves beyond
dichotomous ��adoption vs. non-adoption�� and accounts for the ��missing link�� �C
actual usage �C as a critical stage of value creation. The model links technological, organizational, and
environmental (TOE) factors to e-business use and value, based on which a
series of hypotheses are developed. The theoretical model is tested by using
structural equation modeling on a dataset of 624 firms across ten countries in
the retail industry. To probe deeper into whether e-business use and value are
influenced by economic environments, two subsamples from developed and
developing countries are compared. The study finds that technology competence,
firm size, financial commitment, competitive pressure, and regulatory support
are important antecedents of e-business use. In addition, the study finds that,
while both front-end and backend capabilities contribute to e-business value,
backend integration has a much stronger impact. While front-end functionalities
are becoming commodities, e-businesses are more differentiated by backend
integration. This is consistent with the
resource-based theory because backend integration possesses the value-creating
characteristics of resources (e.g., firm specific, difficult to imitate), which are strengthened by the
Internet-enabled connectivity. Our study also adds an international dimension
to the innovation diffusion literature, showing that careful attention must be
paid to the economic and regulatory factors that may affect technology
diffusion across different countries.
Key words:
Technology diffusion, innovation, e-business, IT investment, usage, value, backend
integration, firm performance,
resource-based view, international perspective