Discovering the determinants and predicting the degree of e-business diffusion using the decision tree method: evidence from Montenegro

Abstract

The aim of this paper is to analyze the impact of technical, organizational and environmental factors on the level of diffusion of electronic business in a developing country. Unlike most previous studies, the intention of this study is to determine and predict the interactive impact of these factors using decision tree (DT) method. This method automatically detects the dependence between variables and does not require any pre-defined hypotheses in relation to these dependencies. In addition, differences are also examined in the degree of influence of these factors in the context of a range of economic sectors and types of e-business. The results of the study show that the level of significance of the individually observed factors varies across different industries and types of business. The results of this study may have theoretical and practical implications for developing countries in terms of the contribution of e-business diffusion to overall socio-economic development.

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