Critical Mass, Diffusion Channels, and Digital Divide

Abstract

Literature has examined the adoption and diffusion of household computers and the Internet, or the first-order “digital divide.” However, the second-order “digital divide”, i.e., the specific usage of these tools, has received much less attention. This paper examines the impact of critical mass and diffusion channels on the adoption of household computer applications. It proposes that critical mass is effective on the adoption of both general and specialized computer applications, and diffusions from channels of workplace and schools are significant. However, critical mass has stronger influence on general applications in early stage while exerts stronger impact on specialized applications in late stage of the diffusion process. In contrast, diffusions from workplace and schools are generally stronger in late stage rather than in early stage. Empirical results from a longitudinal study using Current Population Survey data confirm the propositions. Overall, the study provides important theoretical, managerial, and policy implications.

• digital divide
• computer applications
• technology adoption
• critical mass
• diffusion channels