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Organisational motives and spatial effects in Internet adoption and intensity of use: evidence from French industrial firms

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  • Danielle Galliano
  • Pascale Roux

Abstract

The aim of this study is to examine the reasons why firms use ICTs at varying rates, by making a distinction between the two stages of their diffusion: their adoption and the intensity of their use. What are the differences between Internet adopters (in terms of their internal organization and external environment) that explain the intensity with which they use this technology? Furthermore, do these processes vary according to the type of area in which firms are located (urban vs. rural)? A model of technological diffusion is constructed that merges two types of models: those that concentrate on epidemic effects and the so-called equilibrium models that consider the decision to adopt new technologies as a result of an economic calculation by firms. To test this model, we use data drawn from a recent French national survey of 5,200 industrial firms ("ICT and E-commerce", 2002). One striking result of this study is that we do not obtain a significant positive correlation between firm's size and Internet intensity of use. Moreover, though spatial disparities related to ICT adoption are no longer significant in France, they remain very important in the processes of ICT appropriation and use by firms. The results also indicate that the determinants of the intensity of Internet use vary significantly according to the firms' location: epidemics effects play an essential role in the case of urban the firms, while rank effects are essential in low density areas.
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  • Danielle Galliano & Pascale Roux, 2008. "Organisational motives and spatial effects in Internet adoption and intensity of use: evidence from French industrial firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 425-448, June.
    • Handle: RePEc:spr:anresc:v:42:y:2008:i:2:p:425-448
    DOI: 10.1007/s00168-007-0157-z
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    More about this item

    Keywords

    L2; O3; O18;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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