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Purpose

This study seeks to develop the concept of technological embeddedness by extending the social embeddedness theory of economic actions to household computer adoption. It also aims to propose a research framework in which technological embeddedness is a key factor that influences household computer adoption.

Design/methodology/approach

The US 1989‐2003 Computer and Internet Use Supplements to the Current Population Surveys are used to validate the proposed research framework.

Findings

The results show that technological embeddedness positively affects household computer adoption. In addition, the impact of technological embeddedness is positively moderated by household income, and this impact is particularly stronger on first‐time buyers than on repeat buyers.

Practical implications

The results provide important policy and managerial implications for encouraging household computer adoption and bridging the digital divide.

Originality/value

The paper proposes a new concept and develops a research framework for analyzing household computer adoption and technology adoption in general.

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