This study was designed to explore the phenomenon of electronic commerce adoption within a managed care company. Specifically, the study investigates the variables that contribute to the adoption of the technology as well as the consequences of the technology once implemented.; Using the theory of diffusion developed by Everett Rogers as the theoretical foundation, this case study focuses on determining the relative advantage, complexity, compatibility, observability, and trialability associated with the adoption of this technology. Through the use of a survey instrument, structured interviews, and document analysis, the study provides a broad and comprehensive investigation of how the managed care company reacts to the adoption process as well as the impact of the technology on the firm's financial performance.; The study results show that the managed care company successfully adopted the electronic commerce technology, that significant financial benefits were realized, and that the innovation was compatible, observable, trialable, and not overly complex for the adopting institution. The findings provide strong support for managed care companies to consider adopting this technology to improve the management effectiveness and profitability of their organizations. Additionally, the study results demonstrate how diffusion theory can be utilized as a tool to better understand social change.
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