Purpose - Using the literature on innovation research, this paper proposes to establish and empirically test a prediction model which consists of four major factors in the adoption of online retailing by organisations, namely relative advantage, competitive pressure, channel conflict and technical resource competence.
Design/methodology/approach - Data collected from 140 different companies indicate strong empirical support for the model. Relevant hypotheses were derived and tested by logistic regression analysis.
Findings - The results revealed that relative advantage, competitive pressure and technical resource competence have positive effects on the adoption of online retailing.
Research limitations/implications - The research was conducted in Hong Kong, which may limit the generalisability of the findings. Practical implications - While many studies contribute to an understanding of behaviours of the online market from a consumer perspective, there are few concrete investigations of the organisational viewpoint. With data obtained from practitioners in 140 companies, the major factors of online retailing adoption are addressed, providing strategic directions for managers to evaluate its adoption.
Originality/value - Although many conceptual papers and case studies have identified different potential factors affecting the adoption of online retailing, there are few empirical studies which establish prediction models for its adoption. In fact, during the past decade, in spite of growing interest in B2C transactions, organisations have not necessarily rushed towards adopting online sales. It is critical to have more empirical evidence of the factors affecting the adoption of online sales to help managers further access the benefits of its continuous and potential development. This study attempts to fill the research gap.