Diffusion of VoIP in Chinese large enterprises: the cases of Air China and Harvest Fund

Abstract

Purpose

This research paper aims to apply the technology‐organization‐environment (TOE) framework to describe and discuss the critical factors concerning the diffusion of voice over internet protocol (VoIP) innovations among Chinese large enterprises, in particular, Air China and Harvest Fund.

Design/methodology/approach

The paper deploys a dual case study methodology and extensive triangulation, including review of archival data, in‐depth interviews with key stakeholders, and a questionnaire survey.

Findings

Key factors were identified that have significant influence on the VoIP adoption by Chinese large enterprises. These factors were grouped under the TOE framework to facilitate analysis. Based on the rich data set, the paper identified the following key factors for successful adoption, implementation, and use. Managers of large companies seem to consider reliability of a new technology as the most important factor to be considered for feasibility study and budget approval. At the same time, top management support is extremely important in China. For the top executives, especially those with government background, any major decisions must not only be financially sound but also politically correct. In addition, compatibility with pre‐existing systems, following technology trends and ease of use were also viewed as critical factors influencing the initial adoption of VoIP technology and also affecting its success of implementation and subsequent use.

Research limitations/implications

This paper is exploratory in nature including a dual‐case study design. Further descriptive or/and explanatory studies may help confirm the identified factors and provide additional evidence and explanations why these factors are critical for the diffusion of VoIP among Chinese large companies. Second, a future research avenue is the deregulation of the sector by the Chinese government. Further study can focus on what kinds of benefits can be derived from deregulation as in other countries or regions and how to deregulate current restrictions and foster the development of this market in China. Third, the companies studied in this paper are large companies with a history of government control. With the gradual rise of private companies in China, a future researcher could study the key influential factors for VoIP adoption for these companies.

Originality/value

Out of these critical factors, the paper identifies two rarely mentioned factors that are critical among Chinese large enterprises: first, technology trend; and second, the innovation's return on investment (price/total cost of ownership). The paper also spells out management implications for practitioners in large Chinese firms.

Citation

Assimakopoulos, D. and Wu, H. (2010), "Diffusion of VoIP in Chinese large enterprises: the cases of Air China and Harvest Fund", Journal of Knowledge-based Innovation in China, Vol. 2 No. 1, pp. 7-24. https://doi.org/10.1108/17561411011031963