A Cross‐industry Analysis of Large Firm Transactional Public Web Sites

Abstract

This study examines how the Fortune 500 use transactional public Web sites (TPWS). It applies innovation diffusion theory to identify variables and construct a model to explain differences in adoption rates of TPWS across industries. The study finds high rates of TPWS adoption in the airline, computer and office equipment, commercial banking, and retailing industries. The study also explains why the rates of TPWS adoption vary across different industries. Characteristics of both the innovation and the industry’s environment affect TPWS adoption. A high level of TPWS adoption is associated with industries where: products, services, and sales processes “fit” electronic transactions, the level of price competition is extreme, competitors are aggressively adopting the same technology, and firms are experienced with related technologies and have already developed the necessary information technology infrastructure. The study is significant because it identifies the specific innovation and environmental characteristics that drive varying rates of TPWS adoption among large firms across different industries.