Document Type



Business to customer (B2C) e-business has opened many new opportunities for businesses. In response to studies that underscore the importance of maintaining strong and learning relationship between the organization and customer, many have turned to customer relationship management (CRM) to manage their interactions with their customers and other external entities. Although IT enables CRM, other organizational factors, such as organizational absorptive capacity’s effect on innovativeness, may have greater impact on its ability to continually satisfy the business’ customer needs and expectations. However, IT may be a critical element to both absorptive capacity and innovation. This study examines the relationship between IT diffusion, organizational absorptive capacity and innovation, and proposes a research model. A clearer understanding of these relationships will provide businesses a means to appropriately direct their investments in IT and absorptive capacity.