Based on TOE framework, Thong (1999) developed an integrated model of information system (IS) adoption in small businesses. His model specified contextual variables such as decision-maker characteristics, IS characteristics, organizational characteristics, and environmental characteristics as primary determinants of IS adoption in small businesses. Data from 166 small businesses demonstrated that small businesses with certain CEO characteristics (innovativeness and level of IS knowledge), innovation characteristics (relative advantage, compatibility, and complexity of IS), and organizational characteristics (business size and level of employees’ IS knowledge) were important determinants of IS adoption. The environmental characteristic of competition had no direct effect on small business adoption of IS.