Simulation with Cellular Automata - Diffusion of Electronic Commerce in Small Organizations

Abstract

This paper describes the cellular automata- based simulation model of electronic commerce diffusion in small organizations. The model and method is verified with historical data. The focus and purpose of the research was to study long-term influences on electronic commerce caused by organisational characteristics in small organisations. Five maturity levels of electronic commerce were defined. The study found that the most influential factor of diffusion is “management support”.The dynamics of electronic commerce introduction and usage in non-innovator organisations were significantly influenced by the verbalisation process through business partners. The greatest progress toward upper maturity levels were detected when internal factors strongly predominated over external factors. The developed methodology shows new approaches for cellular automata usage in the study of organisational systems. Key words: small organization, cellular automata, electronic commerce, innovation diffusion