Purpose The purpose of this paper is to investigate empirically the critical factors for the diffusion of web technologies in supply chain management (SCM) functions, based on the technology‐organizational‐environment model, and to identify the benefits resulting from diffusion. Design/methodology/approach Data were collected, via an internet survey, from 251 respondents, ranging from middle‐level to top‐level managers, from firms which currently utilize web technologies for their supply chain activities. Structural equation modelling was employed for five factors: relative advantage; competitive pressure; complexity; trialability; and top management support, which have been hypothesized to affect the diffusion of web technologies in SCM functions. Findings The results suggest that all the factors except trialability are significant predictors of web technologies' diffusion in supply chain functions. The results show also that by diffusing web technologies, organizations can enhance their supply chain activities. Research limitations/implications The survey was conducted in a Malaysian context, using a limited set of variables, thus limiting the generalizability of the findings. Practical implications This study provides a greater understanding of managers' perception of web technology diffusion in their organizational SCM functions, and benefits realizing from diffusion of web technology, such as operational efficiency. Originality/value Those interested in adopting web technologies in their supply chain activities may find these results helpful in guiding their efforts.
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