Impact of Institutional Pressures on Absorptive Capacity of a Firm and Web 2.0 Assimilation

We investigate a theoretical model that combines two streams of research in IT adoption. The first is the institutional theory perspective, which provides the institutional pressures that induce a firm to align itself with the members of the institution of which it is a part. The second is the learning perspective on organization, which has been used to study firm characteristics that promote technology assimilation; it provides the mediating factor of absorptive capacity. In this study we empirically study the role of institutional factors as they are mediated by absorptive capacity in the assimilation of Web 2.0 technologies. Linear structural equation model using formative constructs are developed. Preliminary results are promising. Full results will be discussed at the conference.