《电子商务 E-business》阅读文献_Factors affecting e-commerce adoption and migration at the firm level

Availableonlineatwww.sciencedirect.co SCIENCE DIRECT INFORMATION MANAGEMENT ELSEVIER Information Management 43(2006)204-221 ww.elsevier. com/locate/dsw Migrating to internet-based e-commerce: Factors affecting e-commerce adoption and migration at the firm level Weiyin Hong a*. Kevin znu 6 nt information Systems, College of Business, University of Nevada, 4505 Maryland Parkway, P.O. Box 456034. Las Vegas, NV 89154, USA The Paul Merage School of Business, University of California, Irvine, CA, USA Received in revised form 18 March 2005; accepted 25 June 2005 Available online 26 August 2005 Abstract Web technology has enabled e-commerce. However, in our review of the literature, we found little research on how firms can better position themselves when adopting e-commerce for revenue generation. Drawing upon technology diffusion theory, we developed a conceptual model for assessing e-commerce adoption and migration, incorporating six factors unique to e-commerce. A series of propositions were then developed Survey data of 1036 firms in a broad range of industries were collected and used to test our model. Our analysis based on multi-nominal logistic regression demonstrated that technology integration, web functionalities, web spending, and partner usage were significant adoption predictors. The model showed that these variables could successfully differentiate non-adopters from adopters. Further, the migration model demonstrated that web functionalities, web spending, and integration of externally riented inter-organizational systems tend to be the most influential drivers in firms' migration toward e-commerce, while firm size, partner usage, electronic data interchange (EDI usage, and perceived obstacles were found to negatively affect commerce migration. This suggests that large firms, as well as those that have been relying on outsourcing or EDl, tended to be slow to migrate to the internet platform. C 2005 Elsevier B V. All rights reserved Keywords: Innovation adoption: Migration; Technology diffusion; E-commerce: Intemet technology; EDI; Outsourcing 1. Introduction field of information systems (IS). The potential of the In recent years, electronic-commerce (EC) has firms, such as Dell, Cisco, Wal-Mart, and Charles emerged as one of the most active research areas in the Schwab, have achieved tangible improvements in operational efficiency and revenue generation by integrating e-commerce into their value chain activ fax:+17028950802 ities [7]. not all firms have been uniformly successful 14, 11, 42]. Indeed, firms face a series of obstacles in 378-7206/$- see front matter c 2005 Elsevier B v. All rights reserved doi:l0.1016im.2005.06003

Migrating to internet-based e-commerce: Factors affecting e-commerce adoption and migration at the firm level Weiyin Hong a, *, Kevin Zhu b a Department of Management Information Systems, College of Business, University of Nevada, 4505 Maryland Parkway, P.O. Box 456034, Las Vegas, NV 89154, USA b The Paul Merage School of Business, University of California, Irvine, CA, USA Received in revised form 18 March 2005; accepted 25 June 2005 Available online 26 August 2005 Abstract Web technology has enabled e-commerce. However, in our review of the literature, we found little research on how firms can better position themselves when adopting e-commerce for revenue generation. Drawing upon technology diffusion theory, we developed a conceptual model for assessing e-commerce adoption and migration, incorporating six factors unique to e-commerce. A series of propositions were then developed. Survey data of 1036 firms in a broad range of industries were collected and used to test our model. Our analysis based on multi-nominal logistic regression demonstrated that technology integration, web functionalities, web spending, and partner usage were significant adoption predictors. The model showed that these variables could successfully differentiate non-adopters from adopters. Further, the migration model demonstrated that web functionalities, web spending, and integration of externally oriented inter-organizational systems tend to be the most influential drivers in firms’ migration toward e-commerce, while firm size, partner usage, electronic data interchange (EDI) usage, and perceived obstacles were found to negatively affect e￾commerce migration. This suggests that large firms, as well as those that have been relying on outsourcing or EDI, tended to be slow to migrate to the internet platform. # 2005 Elsevier B.V. All rights reserved. Keywords: Innovation adoption; Migration; Technology diffusion; E-commerce; Internet technology; EDI; Outsourcing 1. Introduction In recent years, electronic-commerce (EC) has emerged as one of the most active research areas in the field of information systems (IS). The potential of the internet is now widely acknowledged. While some firms, such as Dell, Cisco, Wal-Mart, and Charles Schwab, have achieved tangible improvements in operational efficiency and revenue generation by integrating e-commerce into their value chain activ￾ities [7], not all firms have been uniformly successful [4,11,42]. Indeed, firms face a series of obstacles in www.elsevier.com/locate/dsw Information & Management 43 (2006) 204–221 * Corresponding author. Tel.: +1 702 895 2778; fax: +1 702 895 0802. E-mail address: whong@unlv.nevada.edu (W. Hong). 0378-7206/$ – see front matter # 2005 Elsevier B.V. All rights reserved. doi:10.1016/j.im.2005.06.003

w.Hong, K. Zhu/Information Management 43(2006)204-221 adopting e-commerce[23]. Researchers and managers 2. Theoretical development are struggling to determine the right conditions for adopting e-commerce, and what factors facilitate or 2.1. E-commerce adoption literature nhibit them in migrating to the internet from traditional physical channels[40] Table I provides a summary of ou While research has been advancing, literature on material on e-commerce adoption. The studies vary e-commerce adoption typically focuses on adoption in terms of the nature of the technology, research of either a specific technology, such as email and methodology, and measures of e-commerce adoption. web presence [5, 28, 39], or a specific e-commerce First, the e-commerce technologies investigate application [13]. In this study, we adopted an relatively simple, such as establishing corporate alternative view, and defined e-commerce as any websites or email systems. As many companies with application of web technologies that enable revenue- web presence do not actually conduct transactions generating business activities over the internet. This online, the adoption of these simple technologies differentiates our study in several ways: (1)we made are less likely to bring fundamental change to the a distinction between setting up a website and organization. Furthermore, the adoption of simple conducting e-commerce; (2) by focusing on revenue- internet technologies is relatively inexpensive and generating activities, we were able to observe the easy, which makes the adoption decision less xtent to which firms migrated from traditional controversial; for advanced e-commerce technologies, channels to the internet. We were interested in especially those involving online transactions and looking at the extent to which a firm migrated from integrated with internal business processes, the the traditional channel to the internet platform, adoption process is complicated and costly indicated by the percentage of revenue generated Second, there is little empirical data to characterize from the internet over the total revenue. A significant e-commerce or gauge the scale of its impact on firm portion of revenue generated through the internet is performance. This is especially true in"brick-and an indication of the organizations ability to leverage mortar" companies, because of the difficulty of the internet [48 developing measures and collecting data [47]. For We studied two related ways in which firms studies that collected empirical data from multiple move to the internet: e-commerce adoption and companies, the sample size was relatively small(from e-commerce migration. The former refers to whether 62 to 286) with a focus on a narrow industry sector or a the firm has started to use the internet for revenue- specific e-commerce application. These studies moved generating activities. The latter involves the extent the frontiers of knowledge forward, but the findings of revenues generated from the internet versus have less generalizability those from the traditional channel. These two Third, studies have used a variety of dependent measures complement each other: while adoption variables. One is an adoption measure, which typically provides a qualitative description of an organiza- uses the physical acquisition or purchase of the tions'behavior, migration captures the quantitative innovation. As noted by Fichman [17]. this is a property relatively"thin"measure as there can be significant We were particularly interested in examining the delay between the purchase and full implementation importance of technology-related factors and obst Richer information can be found in the assimilation cles associated with applying the technology. These literature, which deals with the extent to which the use factors are important in understanding e-commerce of a technology diffuses across organizational work adoption and migration at the firm level but have processes and becomes routinized in the activities seldom been studied [49]. By building upon earlier associated with those processes [18]. The literature theoretical models of technology adoption [34, 38] normally considers the adoption as a longitudinal especially the technology-organization-environment process that can be divided into a number of stages, (TOE) framework [43], we developed and tested a from awareness of the innovation to its full deployment model with an emphasis on firm level factors unique throughout the organization [14, 29]. Alternatively, to the internet organizational assimilation of e-commerce has been

adopting e-commerce [23]. Researchers and managers are struggling to determine the right conditions for adopting e-commerce, and what factors facilitate or inhibit them in migrating to the internet from traditional physical channels [40]. While research has been advancing, literature on e-commerce adoption typically focuses on adoption of either a specific technology, such as email and web presence [5,28,39], or a specific e-commerce application [13]. In this study, we adopted an alternative view, and defined e-commerce as any application of web technologies that enable revenue￾generating business activities over the internet. This differentiates our study in several ways: (1) we made a distinction between setting up a website and conducting e-commerce; (2) by focusing on revenue￾generating activities, we were able to observe the extent to which firms migrated from traditional channels to the internet. We were interested in looking at the extent to which a firm migrated from the traditional channel to the internet platform, indicated by the percentage of revenue generated from the internet over the total revenue. A significant portion of revenue generated through the internet is an indication of the organization’s ability to leverage the internet [48]. We studied two related ways in which firms move to the internet: e-commerce adoption and e-commerce migration. The former refers to whether the firm has started to use the internet for revenue￾generating activities. The latter involves the extent of revenues generated from the internet versus those from the traditional channel. These two measures complement each other: while adoption provides a qualitative description of an organiza￾tions’ behavior, migration captures the quantitative property. We were particularly interested in examining the importance of technology-related factors and obsta￾cles associated with applying the technology. These factors are important in understanding e-commerce adoption and migration at the firm level but have seldom been studied [49]. By building upon earlier theoretical models of technology adoption [34,38], especially the technology–organization–environment (TOE) framework [43], we developed and tested a model with an emphasis on firm level factors unique to the internet. 2. Theoretical development 2.1. E-commerce adoption literature Table 1 provides a summary of our review of material on e-commerce adoption. The studies vary in terms of the nature of the technology, research methodology, and measures of e-commerce adoption. First, the e-commerce technologies investigated are relatively simple, such as establishing corporate websites or email systems. As many companies with web presence do not actually conduct transactions online, the adoption of these simple technologies are less likely to bring fundamental change to the organization. Furthermore, the adoption of simple internet technologies is relatively inexpensive and easy, which makes the adoption decision less controversial; for advanced e-commerce technologies, especially those involving online transactions and integrated with internal business processes, the adoption process is complicated and costly. Second, there is little empirical data to characterize e-commerce or gauge the scale of its impact on firm performance. This is especially true in ‘‘brick-and￾mortar’’ companies, because of the difficulty of developing measures and collecting data [47]. For studies that collected empirical data from multiple companies, the sample size was relatively small (from 62 to 286) with a focus on a narrow industry sector or a specific e-commerce application. These studies moved the frontiers of knowledge forward, but the findings have less generalizability. Third, studies have used a variety of dependent variables. One is an adoption measure, which typically uses the physical acquisition or purchase of the innovation. As noted by Fichman [17], this is a relatively ‘‘thin’’ measure as there can be significant delay between the purchase and full implementation. Richer information can be found in the assimilation literature, which deals with the extent to which the use of a technology diffuses across organizational work processes and becomes routinized in the activities associated with those processes [18]. The literature normally considers the adoption as a longitudinal process that can be divided into a number of stages, from awareness of the innovation to its full deployment throughout the organization [14,29]. Alternatively, organizational assimilation of e-commerce has been W. Hong, K. Zhu / Information & Management 43 (2006) 204–221 205

206 w. Hong, K. Zhu/ Information Management 43(2006) 204-22 Literature review on e-commerce adoption Study Methodology Factors/major findings Beatty et al.(2001)(&M) Innovation diffusion Survey (N=286) DV: Entry timing(pioneer, early adopter. early majority, late majority, laggard) IT adoption Various industries Medium-to-large technical compatibility, organization ompatibility, top management support Chatterjee et al. [11](MIsQ) tional theory Survey(N= 62) DV: EC activities and strategies Manufacturing IV: Championship, strategic investment service firms rationale. extent of coordination Chiru and Technology Case study: Online Framework: Value flows- potential Kauffman [13(MIS diffusion theory vel reservation value→ realized value Limits.to-value model systems Valuation barriers: Industry barriers knowledge barriers, usage barriers Zhu et al. [49](EIS) TOE framework Survey (N= 3100) DV: Intent to adopt e-business Technology competence, firm scope, siz onsumer readiness, partner readiness, and competitive pressure Kowtha and Resource- based view Survey(N= 135) DV: Website development-four generation hoon [24 (information and catalog, database. transaction, integrated site) IT adoption Travel. financial IV: Prior competencies, firm size, firm age, d It sectors competitive intensity, strategic commitment to e-commerce Mehrtens et al. [28(&M) Innovation literature Case studies DV: Decision to adopt-dichotomy (Y/N) SMEs IV: Perceived benefits, organizationa Teo et al. 39(EC Co Survey (N= 188) theory, TOE (adopters with website, adopters Various industries IV: Technological factors, organizational Small and large firms factors, environmental factors TOE framework Case study Innovation-specific characteristics Ramamurthy [44(EC) (the social and technological context) Zhu and Kraemer [47](ISR) It business valu DV: Firm performance measures Resource-based view IV: EC capability(infor transaction, interaction, supplier integration): IT infrastructure ote: DV, dependent variables; IV, independent variables: EDI, electronic data interchange. Studies focusing on consumer acceptance of internet ommerce, website design, and price comparison are not included. measured by the degree of different activities being impact of the innovation In our study, we chose both an mplemented on the corporate website. While these adoption measure(adopter, potential-adopter, and non- measures depict the extent to which the innovation has adopter) and a direct impact measure(the portion of been used, they do not provide information on the revenue generated by e-commerce). The two measures

measured by the degree of different activities being implemented on the corporate website. While these measures depict the extent to which the innovation has been used, they do not provide information on the impact of the innovation. In our study, we chose both an adoption measure (adopter, potential-adopter, and non￾adopter) and a direct impact measure (the portion of revenue generated by e-commerce). The two measures 206 W. Hong, K. Zhu / Information & Management 43 (2006) 204–221 Table 1 Literature review on e-commerce adoption Study Theory Methodology Factors/major findings Beatty et al. (2001) (I&M) Innovation diffusion Survey (N = 286) DV: Entry timing (pioneer, early adopter, early majority, late majority, laggard) IT adoption Various industries IV: Perceived benefits, complexity, technical compatibility, organizational compatibility, top management support Medium-to-large U.S. firms Chatterjee et al. [11] (MISQ) Institutional theory Survey (N = 62) DV: EC activities and strategies Structuration theory Manufacturing & service firms IV: Championship, strategic investment rationale, extent of coordination Chircu and Kauffman [13] (JMIS) Technology diffusion theory Case study: Online travel reservation systems Framework: Value flows ! potential value ! realized value Limits-to-value model Valuation barriers: Industry barriers, organizational barriers Conversion barriers: Resource barriers, knowledge barriers, usage barriers Zhu et al. [49] (EJIS) TOE framework Survey (N = 3100) DV: Intent to adopt e-business IV: Technology competence, firm scope, size, consumer readiness, partner readiness, and competitive pressure Kowtha and Choon [24] (I&M) Resource-based view Survey (N = 135) DV: Website development—four generation (information and catalog, database, transaction, integrated site) IT adoption Travel, financial, and IT sectors IV: Prior competencies, firm size, firm age, competitive intensity, strategic commitment to e-commerce Mehrtens et al. [28] (I&M) Innovation literature Case studies DV: Decision to adopt—dichotomy (Y/N) SMEs IV: Perceived benefits, organizational readiness, external pressure Teo et al. [39] (IJEC) Contingency theory, TOE Survey (N = 188) DV: Decision to adopt—trichotomy (adopters with website, adopters without website, non-adopters) Various industries IV: Technological factors, organizational Small and large firms factors, environmental factors Vadapalli and Ramamurthy [44] (IJEC) TOE framework Case study Innovation-specific characteristics (the social and technological context) Organization-specific characteristics (organization boundaries, transaction cost economics, and organizational cognition) Zhu and Kraemer [47] (ISR) IT business value Survey (N = 260) DV: Firm performance measures Resource-based view Manufacturing firms IV: EC capability (information, transaction, interaction, supplier Dynamic capability integration); IT infrastructure measures Note: DV, dependent variables; IV, independent variables; EDI, electronic data interchange. Studies focusing on consumer acceptance of internet commerce, website design, and price comparison are not included

w.Hong, K. Zhu/Information Management 43(2006)204-221 helped us gain a more balanced understanding of potentially affected and the innovation may have e-commerce adoption and migration strategic relevance to the firm 2.2. The technology diffusion framework We consider e-commerce to be a Type In innovation because it is often embedded in the firms Tornatzky and Fleischer [43] proposed the core business processes or is extending basic business technology-organization-environment framework to products and services, and integrating suppliers and doption of technological innovations; it ustomers in the value chain identified three aspects of a firms contexts that influenced adoption and implementation. (1) Techno- logical context-the existing and emerging technol 3. Conceptual model and theoretical ogies relevant to the firm; (2)organizational context- propositions in terms of several descriptive measures: firm size and scope, managerial structure, and internal resources; 3. 1. An integrated model of e-commerce adoption ( )environmental context-the macro arena in which and migration a firm conducts its business: industry, competitors, and dealings with government. We developed an integrated model to address the The TOE framework has been utilized for studying adoption and migration of e-commerce. As shown in different types of innovations [12, 22, 26, 41]. Accord- Fig. 1, this posited six predictors for e-commerce ing to the typology of Swanson, innovations can be adoption( technology integration, web spending, web classified into three categorie functionalities, electronic data interchange(EDi)use, outsourcing partner usage, and perceived obstacles) Type 1: technical innovations restricted to the Is while controlling for firm size and industry types functional tasks. These factors were chosen because they were believed Type Il: applying IS products and services toto be important in understanding and explaining the support administrative tasks of the business phenomenon of interest. Type I: integrating Is products and services with ide range of factors was found in the literature the core business where the whole business is Instead of repeating them, we chose to focus on a few Pla Technology Integration Web Spending Web Functionalities ed EC Migration EDI Use Partner Usage Perceived Obstacles Fig. 1. Conceptual framework for e-commerce(EC)adoption and migration

helped us gain a more balanced understanding of e-commerce adoption and migration. 2.2. The technology diffusion framework Tornatzky and Fleischer [43] proposed the technology–organization–environment framework to study the adoption of technological innovations; it identified three aspects of a firm’s contexts that influenced adoption and implementation. (1) Techno￾logical context—the existing and emerging technol￾ogies relevant to the firm; (2) organizational context— in terms of several descriptive measures: firm size and scope, managerial structure, and internal resources; (3) environmental context—the macro arena in which a firm conducts its business: industry, competitors, and dealings with government. The TOE framework has been utilized for studying different types of innovations [12,22,26,41]. Accord￾ing to the typology of Swanson, innovations can be classified into three categories:
Type I: technical innovations restricted to the IS functional tasks;
Type II: applying IS products and services to support administrative tasks of the business;
Type III: integrating IS products and services with the core business where the whole business is potentially affected and the innovation may have strategic relevance to the firm. We consider e-commerce to be a Type III innovation, because it is often embedded in the firm’s core business processes or is extending basic business products and services, and integrating suppliers and customers in the value chain. 3. Conceptual model and theoretical propositions 3.1. An integrated model of e-commerce adoption and migration We developed an integrated model to address the adoption and migration of e-commerce. As shown in Fig. 1, this posited six predictors for e-commerce adoption (technology integration, web spending, web functionalities, electronic data interchange (EDI) use, outsourcing partner usage, and perceived obstacles), while controlling for firm size and industry types. These factors were chosen because they were believed to be important in understanding and explaining the phenomenon of interest. A wide range of factors was found in the literature. Instead of repeating them, we chose to focus on a few W. Hong, K. Zhu / Information & Management 43 (2006) 204–221 207 Fig. 1. Conceptual framework for e-commerce (EC) adoption and migration

w Hong, K. Zhu/ Information Management 43(2006) 204-22 factors that are part adoption and are represented on the web platform. This extends the migration. While other factors could have been technology notion from a purely technical measure to selected, the factors in our model emphasized the fit (1)the relationship between the new technology and the between the new capability and legacy systems, the existing base and (2) the use of the technology by the web-related technological capability that firms pos- organization. As a type Ill technology, e-commerce sess, the is budget devoted to web-related spending, requires close coordination of various components the firms prior technology base, the strategy that firms along the value chain. Similarly, the more integrated take to develop their IT applications, and the perceived these existing applications are with the internet obstacles associated with applying the technology. platform, the more capacity the organization has to These factors are more related to the technological conduct its business over the internet. As a result those than the organizational and environmental contexts. firms would enjoy greater e-commerce migration. This First, organizational factors have already been studied leads to the following propositions: 32, 33] and environmental factors have been exam ed [25]. Essential organizational characteristics, Pla. Technology integration is positively associated such as firm size and industry type, were included in with e-commerce adoption the model as control variables Second, the study of Is adoption requir PIb. Technology integration is positively associated consideration of the specific technology and its use with e-commerce migration. [6], partly because innovation diffusion theories did not provide specific innovation attributes for Is 3. 2.2. Web spending ption in firms. Fichman argued that classical Financial resources are an important factor for diffusion variables are unlikely to be strong predictors technology adoption. We defined web spending as the of adoption and diffusion for complex Type portion of financial resources devoted to web-based Initiatives innovations, suggesting that factors more specific to ding hardware, software, IT services the technology should be added. consulting, and employee training. Firms with Third, the literature on e-commerce adoption higher web budget are better positioned to adopt e-commerce. This may also be an indication of suggested that a large variety of variables have been the importance that top management places on studied. However, there is little consistency in terms of the inclusion of variables in these studies because (1) e-commerce. Hence, firms with greater web spending there was a large span of variables that could be are more likely to adopt e-commerce as well as migrate offine transactions to the online platform. studied;(2)the nature of the technologies differed;(3) This leads to the following propositions the organizational contexts varied. Therefore, we did not attempt to conduct a comprehensive study but P2a. Web spending is positively associated with e- focused on technology-related variables that apply to commerce adoptio e-commerce technologies P2b. Web spending is positively associated with 3.2. Theoretical propositions commerce migration. 3.2.1. Technology integration 3. 2.3. Web functionalities Prior to the internet, firms had been usin Web technologies offer a variety of functionalities technologies to support business activities along their ranging from static presentation of content to dynamic value chain, but many were"islands of automation capture of transactions with provisions for security and they lacked integration across applications[45]. The personalization [10]. Firms must make use of these characteristics of the intemet may help remove the technologies and decide how to draw upon their incompatibilities and rigidities of legacy IS and achieve capabilities for e-commerce. Web functionalities help technology integration among various applications and firms provide real-time information to customers, databases. We define technology integration as the update product offerings and make price change, extent to which various technologies and applications facilitate self-service via online account management

factors that are particularly relevant to adoption and migration. While other factors could have been selected, the factors in our model emphasized the fit between the new capability and legacy systems, the web-related technological capability that firms pos￾sess, the IS budget devoted to web-related spending, the firm’s prior technology base, the strategy that firms take to develop their IT applications, and the perceived obstacles associated with applying the technology. These factors are more related to the technological than the organizational and environmental contexts. First, organizational factors have already been studied [32,33] and environmental factors have been exam￾ined [25]. Essential organizational characteristics, such as firm size and industry type, were included in the model as control variables. Second, the study of IS adoption requires consideration of the specific technology and its use [6], partly because innovation diffusion theories did not provide specific innovation attributes for IS adoption in firms. Fichman argued that classical diffusion variables are unlikely to be strong predictors of adoption and diffusion for complex Type III innovations, suggesting that factors more specific to the technology should be added. Third, the literature on e-commerce adoption suggested that a large variety of variables have been studied. However, there is little consistency in terms of the inclusion of variables in these studies because (1) there was a large span of variables that could be studied; (2) the nature of the technologies differed; (3) the organizational contexts varied. Therefore, we did not attempt to conduct a comprehensive study but focused on technology-related variables that apply to e-commerce technologies. 3.2. Theoretical propositions 3.2.1. Technology integration Prior to the internet, firms had been using technologies to support business activities along their value chain, but many were ‘‘islands of automation’’— they lacked integration across applications [45]. The characteristics of the internet may help remove the incompatibilities and rigidities of legacy IS and achieve technology integration among various applications and databases. We define technology integration as the extent to which various technologies and applications are represented on the web platform. This extends the technology notion from a purely technical measure to (1) the relationship between the new technology and the existing base and (2) the use of the technology by the organization. As a type III technology, e-commerce requires close coordination of various components along the value chain. Similarly, the more integrated these existing applications are with the internet platform, the more capacity the organization has to conduct its business over the internet. As a result, those firms would enjoy greater e-commerce migration. This leads to the following propositions: P1a. Technology integration is positively associated with e-commerce adoption. P1b. Technology integration is positively associated with e-commerce migration. 3.2.2. Web spending Financial resources are an important factor for technology adoption. We defined web spending as the portion of financial resources devoted to web-based initiatives, including hardware, software, IT services, consulting, and employee training. Firms with higher web budget are better positioned to adopt e-commerce. This may also be an indication of the importance that top management places on e-commerce. Hence, firms with greater web spending are more likely to adopt e-commerce as well as migrate offline transactions to the online platform. This leads to the following propositions: P2a. Web spending is positively associated with e￾commerce adoption. P2b. Web spending is positively associated with e￾commerce migration. 3.2.3. Web functionalities Web technologies offer a variety of functionalities ranging from static presentation of content to dynamic capture of transactions with provisions for security and personalization [10]. Firms must make use of these technologies and decide how to draw upon their capabilities for e-commerce. Web functionalities help firms provide real-time information to customers, update product offerings and make price change, facilitate self-service via online account management 208 W. Hong, K. Zhu / Information & Management 43 (2006) 204–221