Factors influencing corporate web site adoption: a time-based assessment

Abstract

Although the World Wide Web (Web) has become one of the most widely used information technologies, research indicates that there are many firms that are still considering whether to establish a Web presence. This study presents results from a survey of 286 medium-to-large US firms that have adopted corporate Web sites. Findings reveal significant differences in the reasons that these firms decided to adopt Web technology depending on when the firm made the adoption decision; early adopters placed more emphasis on perceived benefits and compatibility of the Web with existing technology and organizational norms than did later adopters. This paper also discusses findings for practitioners. Finally, some implications for the future of the field are discussed.

Introduction

Few topics have received as much attention as the World Wide Web (Web) in the IT field. The Web has quickly become one of the most important mediums for the sharing of business information among firms (business-to-business, B2B) and between firms and their customers (business-to-consumer, B2C) [16], [63]. Organizations are now able to share information and process transactions electronically with organizations and individuals without the need for a formal business relationship. The steady growth and development of the Web has prompted many firms to reassess and redesign the way they share critical business information [25], [49]. Existing business assumptions and practices are often transformed to address the opportunities available through this new technology [64]. The speed and connectivity that are an inherent part of doing business on the Web can provide firms with both operational and administrative benefits that can improve the firm’s overall competitive position [3], [24], [50].

Web sites offer an array of potential benefits to firms, including reduced transaction, advertising, and distribution costs, elimination of third party intermediaries, reduced time to complete transactions, and the ability to monitor customer choices and gather market intelligence [19]. Other benefits include the ability to deliver timely information to stakeholders and to offer customized advertising, promotion, and customer services [34], [52]. Finally, Web sites provide certain operational benefits related to reduced clerical errors, overhead costs, and faster response to new market opportunities [35], [59]. The emerging importance of this technology has resulted in a growing volume of research about Web innovation [15], [17], [31], [33], [47]. Because the Web is a relatively new vehicle for sharing information, much of the research is descriptive, often anecdotal, accounts of the technical development and application of Web sites [43], [48]. Other work has provided a conceptual overview of the potential impact that Web sites have on both organizational information sharing and established business practices.

Recently, several empirical studies have focused on individual consumer preferences and organizational perceptions of the Web, particularly with regard to information acquisition and Web utilization [53]. These studies have made valuable contributions to our understanding of Web utilization and implementation, yet they provide little insight into the extent to which specific factors impact the decision to establish a corporate Web site. Even though organizational Web sites are common, there are still a large number of firms that do not have one [11]. Because the Web is rapidly becoming a routine way of providing information and establishing links to customers, firms that do not have sites may be at a distinct disadvantage in the near future [27]. Insight into the factors that have influenced other firms’ decisions to adopt at distinct points in time may provide useful information to firms that have not yet adopted or who are reassessing their original decisions.

This study examines the organizational and marketplace factors that influence organizations to establish a presence on the Web. Specifically, the research question that guides this examination is whether the importance of these factors is related to the time that a firm established its Web site. A primary objective is to provide firms with insight into why other firms have adopted the technology. In addition, because theory indicates that after adoption, adopters seek reinforcement of their decision [46], another objective is to provide firms that have a Web site with a basis on which to assess their original adoption decision. For example, firms considering whether to expand their existing site may be able to use these findings to help them determine what was important in the initial adoption, and thereby help target areas of strength for support of the expansion. The last objective is to provide a basis on which future research about Web innovation can be conducted.