This study examines the effects resellers have on the decision of a small manufacturing firm to adopt e-business. These effects are twofold: fear of alienating a reseller can impede the adoption, while the reseller's intentions to invest in e-business can facilitate the adoption. Both effects are more pronounced for firms with fewer than 50 employees and almost irrelevant for firms with more than 200 employees. The explicit channel cannibalization effect and the moderating role of the willingness to cannibalize are also significant.
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