The Adoption of Web-Based Supply Chain Management Applications: An Institutional Perspective

The objective of this study is to develop a comprehensive model to explain why organizations adopt Web-based Supply Chain Management (SCM) applications from an institutional perspective. Questionnaire survey was used to collect data from manufacturing firms in Jordan. Structural Equation Modeling (SEM), using EQS was used to analyze the data. The results indicated that the environmental coercive and mimetic pressures and organizational characteristics have a positive effect on the top management’s perception and support of Web-based SCM adoption and usage. Furthermore, the study revealed that the Web-based SCM applications represent the pool that reflects the degree of response to institutional pressures. This study was the first to empirically explain why organizations adopt Web-based SCM from an institutional perspective, adding new contribution to the developing literature on Web-based SCM. Understanding the external pressures and the effect of organizational factors will provide the practitioners with better knowledge on how to manage the adoption of Web-based SCM applications.