Local Area Network Adoption: An Empirical Assessment

Abstract

Local area networks LANs fill organizations' need to efficiently and quickly transfer information within their boundaries. There are a variety of factors firms consider when adopting LANs such as characteristics of the LAN e.g., operating speed and cost of operation, ease of installation, and vendor provided support during and after the LAN installation. Not all firms adopt LANs for the same reasons, thus the importance placed on these dimensions varies from firm to firm. This study examines the relationship between the importance placed on dimensions of the adoption process and organizational characteristics such as size, degree of centralization, complexity, and information systems maturity. Results indicate that the extent of information systems maturity in a firm has the most influence on the priority placed on various adoption dimensions. For example, more mature firms place a greater priority on tangible LAN characteristics than do less mature firms. Findings provide a framework in which to begin to understand the organizational nature of the LAN adoption decision.