Industry and Use of Internet Enabled Business Practices

Abstract

The study aims to address the lack of empirical research into how industry factors influence the adoption of internet-enabled business practices (IBP) in large organisations. Using 2002 data from 281 Australian firms approximately 21.9% could be classified as 'brick and mortar' and while the rest could be classified as 'click and mortar' organisations only 4.9% were high users of IBP's. Only 6% of the variation in internet-enabled business practices is explained by industry membership at the ANZSIC industry division level though at the sub-division level this rose to 14%. A firm's size, monopoly position and industry turbuence explained 14% (13% adjusted) of IBP adoption variation. The findings suggested that the adoption of Internet-enabled business practices is more likely to occur in industries where there is a perception by senior management of competitive turbulence.