Internet diffusion in Chinese companies

Abstract

The Internet is increasingly indispensable to national economies worldwide. Here, we focus on the Internet diffusion process in Chinese businesses and its link to the general growth of IT spending throughout the Chinese economy. Our results are based on our 10-year investigation of IT adoption in Chinese companies and industry-specific patterns of Internet diffusion and related IT spending growth. IT applications in China were introduced relatively late in Internet evolution compared to those in the developed countries, forcing business managers to contend with a lack of experience, know-how, and infrastructure. This late start has also meant that Chinese companies are able to choose from relatively more advanced technologies, learn from the experience of others, and be less bothered by the problems associated with legacy systems. In addition, because China generally uses IT differently from other countries, it is worth investigating the process through which Chinese companies adopt new technology, as well as any patterns that have emerged within it, so as to better understand how IT affects the overall Chinese economy.