What factors drive the assimilation of internet technologies in China?

Abstract

China, which has evolved as a 'super power' in the Internet economy, is looking forward to incorporate Internet technologies into business applications of Chinese firms with an aim to establish a market economy. A field survey was conducted with several international trading companies located in the Beijing area to analyze the assimilation of Internet technologies in Chinese firms. Trading companies were found to be very active in adopting Internet technologies and are undergoing the transition from central governmental control to free-market coordination, and thereby the pattern of the assimilation of Internet technologies in these companies is likely to reflect the institutional changes. The results of the survey show that in the transition process towards a market economy, the assimilation of Internet technologies in Chinese firms is more influenced by their market orientation than by an orientation towards employees and functional units.