Intranet Adoption and Inter-Functional Co-ordination

Intranets are a recent development in groupware technology based on the same open format as the Internet. The literature on computer aided communication suggests that groupware can facilitate information sharing and inter-functional co-ordination within firms. Inter-functional co-ordination is a significant component of a market orientation and is associated with marketing performance. This paper reports the results of a survey of Intranet adoption by New Zealand firms, and the effect of Intranets on inter-functional co-ordination. The level of Intranet adoption is shown to be moderate (38% of responding firms) and independent of characteristics such as company resources or objectives. The presence of an Intranet is not significantly associated with the level of inter-functional co-ordination. There is, however, evidence of a learning curve, indicating that companies begin to experience co-ordination benefits from an Intranet after one year or more.