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The Role of Product Complexity and Firm Competency in the Diffusion of User-Customized Systems

Authors/Editors: Gamharter, B.
Kretschmer, T.
Published: 2008
Type: Articles in Refereed Proceedings (International)
ISBN/ISSN: 978-3-940019-34-9
Published by: Proceedings of the Multikonferenz Wirtschaftsinformatik (MKWI) 2008
: Munich


We study firm-level adoption of packaged software products across 3,891 sites in the United Kingdom over four years (2000-2003). We treat the entire bundle of software in a firm as its software product and divide the bundle into related, but distinct subsystems. Diffusion is studied across those subsystems. We introduce three factors that may affect the adoption decision: product complexity, architectural linkage and competency destroying/enhancing scale. We find that firms enhancing their competency are more likely to adopt new technologies, while there is a negative relationship between architectural linkage and product adoption. We also find that changes in the complexity of core subsystems hinder switching.