Research problem: Most of the previous research into corporate websites has focused on the users' point of view and their perception of usability and interactivity as the two predominant website characteristics, and has shown that interactivity plays an important role in consumers' perceptions of, and responses to, these sites. This study explores corporate websites from a different view-that of the company-and investigates the organizational motivation to adopt new interactive features on corporate websites. Research question: What are the critical factors influencing the firm's adoption of online innovations related to interactivity on their websites? Literature review: Many dominant theories in information technology (IT) that guide most research on IT adoption at the firm level include the diffusion of innovations theory (which seeks to explain how, why, and at what rate new ideas and technology spread through cultures) and the technology, organization, and environment framework (which identifies three
aspects of an enterprise's context that influence the process by which it adopts and implements a technological innovation). But other research streams can contribute to the Theory of Technology Adoption at the firm level, including Institutional Theory (which is a widely accepted theoretical posture that emphasizes rational myths, isomorphism, and legitimacy) and the model of Iacovou(which analyzes interorganizational systems' characteristics that influence firms to adopt IT innovations). Methodology: A conceptual model with supporting propositions was tested using an online questionnaire. Data were collected from 138 firms in Switzerland and Germany and analyzed with multiple regression analysis. Results and conclusions: Complexity, perceived benefits, top management support, and information intensity are the drivers that play important roles in the diffusion of innovation related to interactivity on corporate websites, and support our conceptual model.