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Adoption of e-business: patterns and consequences of network externalities

Christian Schade and Philipp Köllinger
Authors registered in the RePEc Author Service: Philipp Koellinger

No 2004,05, Papers from Humboldt University of Berlin, Center for Applied Statistics and Economics (CASE)

Abstract: The paper analyzes the adoption of various e-business technologies. Strong empirical evidence is found for the existence of increasing returns to adoption due to indirect network externalities between related technologies. If a company is close to the technological frontier, its probability of adoption increases. The empirical analysis is based on more than 5,000 observations from a cross-sectional European enterprise survey conducted in June 2002. A classification and regression tree (CART) is used to illustrate technological complementarities and their effect for the adoption probability of a firm.

Keywords: Technology Adoption; Path Dependence; Classification Trees (search for similar items in EconPapers)
JEL-codes: O30 L29 C14 (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:caseps:200405

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