Stakeholder Power in E-business Adoption with a Game Theory Perspective

Abstract

The likelihood that one organization can pressure the e-business adoption practices of other organizations depends on two conditions: there must be sufficient power difference between the organizations; and the ebusiness process benefit must be sensitive to the number of adopters. Given these two conditions, the powerful organization can use their power advantage to control adopter numbers through urging or suppressing adoption by others. Examples from practice are provided, a theoretical framework capturing the three dimensional nature of e-business adoption influence is developed, and Game Theory is used to explore the range of possible outcomes when pressure to adopt is brought to bear between organizations of unequal power.