University of Southern Mississippi
Despite the substantial contribution to the software industry by small and medium enterprises purchasing software package upgrades, to date there has been minimal research on the topic. Most businesses rely on packaged software for administrative and many core business functions. The practitioner press reports that managers experience frustration due to the frequency of software upgrade releases. After reviewing the diffusion of innovation literature, factors thought to influence the likelihood to purchase software upgrades were identified: business characteristics, innovativeness, relative advantage, external influences, complexity of purchase decision, and compatibility. A multi-method approach explored these factors.