Purpose-This study aims to develop a research model to examine the antecedents of three stages of electronic business (e-business) diffusion (including e-business initiation, implementation and assimilation). The research model features knowledge management (KM) capabilities (knowledge acquisition, knowledge storage, knowledge dissemination, and knowledge protection), and partnership attributes (partner interdependence, partner trust, and partner commitment) as prominent antecedents of stage-based e-business diffusion. Design/methodology/approach-Data gathered from 398 firms were employed to test the relationships between the research model constructs using a structural equation modeling (SEM) approach. Findings-The results reveal that the factors for KM capabilities and partnership attributes have different impacts on three stages of e-business diffusion. In particular, knowledge dissemination has a positive effect on all three e-business diffusion stages, demonstrating its importance in the decision to shape e-business diffusion. Moreover, the findings show that three partnership attributes are important enablers during the whole e-business diffusion process. Practical implications-In the context of e-business, knowledge dissemination activities occur not only within firms, but also between firms and their business partners. Knowledge dissemination enables employees to develop novel solutions to problems that significantly improve on current practices. Hence, the increasing importance of the field of knowledge dissemination is primarily attributed to promotion of successful e-business activities and increased level of e-business implementation. Originality/value Theoretically, this study aims to provide a research model that is capable of understanding the determinants of the stage-based e-business diffusion. From a managerial perspective, the findings of this study provide valuable guidelines to policy-makers and practitioners in implementing e-business and accelerating e-business diffusion.
