The impact of institutional forces on B2B ecommerce diffusion

Abstract

Despite the great promises of B2B ecommerce, its diffusion in many countries has been slow. This research studies the influence of institutional forces on the assimilation of B2B ecommerce. Based on institutional theory, the theoretical model is tested on data collected through a survey of 200 Singapore B2B organizations. Our results show that institutional pressures from parent companies, major suppliers, major customers, competitors and institutional promotion efforts from legislative organizations and trade associations directly influence the organizational decision makers' intent toward B2B ecommerce. Our research informs policy makers about the importance of institutional support and promotion in B2B ecommerce adoption to fully reap the benefits offered by B2B ecommerce. Our research also implies the potential growth of B2B ecommerce as many companies will be pressured to conduct B2B ecommerce when their major suppliers or customers start selling or buying products or services over electronic systems.