The study develops an integrated model to examine factors, particularly government factors, which influence IT adoption in Chinese firms. By analyzing the survey data from 1540 firms across 14 industries and across various ownerships in Shanghai, the study contributes several insights into firms’ IT usage. First of all, this study sheds light on the IT adoption in Chinese firms and validates the general route from IT infrastructure construction to value realization. Second, the findings suggest that government actions influence firms’ IT infrastructure development and IT management decision. However, there is no evidence showing the government impact on firms’ IT usage. The study also provides valuable IT adoption implications to firms in China, particularly to those in the modern cities like Shanghai.
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