Towards an importance-performance analysis of factors affecting e-business diffusion in the wood industry

The utilization of Internet-enabled information systems promises to create significant advantages in terms of inter-organizational information sharing and operational efficiency. The low diffusion of e-business within the wood industry, despite the prospective benefits, is puzzling. This study sets out to investigate factors of e-business adoption to derive recommendations for improving e-business diffusion in the wood industry. Drawing on the technology-organization-environment framework, this paper develops a factor-based research model and differentiates between two stages of e-business diffusion: initial adoption and long-term routinization. An empirical study was carried out, collecting complete data from 204 organizations in the German wood industry. Next to classical structural equation modeling, the so-called importance-performance analysis technique was first adopted to the context of information systems diffusion research. This method allows for the identification of factors that not only have a high influence on e-business diffusion but also demonstrate significant potential for improvement. The results of this study provide important insights into both research and practice. First, the knowledge on causes of low IS diffusion in the wood industry is enhanced by differentiating technological, organizational, and environmental factors and two stages of e-business diffusion. This study reveals that routinization lags behind initial adoption in the wood industry. Second, the value of importance-performance analysis technique for research on IS diffusion is demonstrated. The results suggest that future studies should apply this method to enhance data interpretation. Lastly, decision makers in the wood industry can make use of the empirical results to design effective action plans to promote e-business diffusion.