A Multivariate Probit Analysis of Korean Firms Information System Adoption: An Empirical Analysis on the Determinants of the Adoption and Complementarity Among the Information Systems

As the ICT industry continues to grow, firms worldwide continue to adopt and use enterprise information systems. Although there is some existing research on the determinants of firms¡¯ information system adoption, most such studies do not take into account a firm¡¯s adoption of more than one information system (multiple adoption behaviour). Moreover, small sample sizes have hindered the ability of many previous empirical studies of information system adoption to report strongly reliable results. Using a Bayesian multivariate probit approach, this study examines a sample of 438 Korean companies covering a variety of business areas, including manufacturing, to investigate the determinants of firms¡¯ adoption of and the substitutionary patterns among four major information systems: enterprise resource planning (ERP), customer relationship management (CRM), e-buy, and groupware. As a result, the epidemic effect generally outweighs the size effect and putting more effort into the intensity of information strategy planning is very influential on the adoption of information systems. And a relatively strong complementary relationship exists between ERP adoption and CRM adoption, and between e-buy adoption and groupware adoption.