We investigate a theoretical model that combines two streams of research in IT adoption. The first is the institutional theoryperspective, which provides the institutional pressures that induce a firm to align itself with the members of the institution ofwhich it is a part. The second is the learning perspective on organization, which has been used to study firm characteristicsthat promote technology assimilation; it provides the mediating factor of absorptive capacity. In this study we empiricallystudy the role of institutional factors as they are mediated by absorptive capacity in the assimilation of Web 2.0 technologies.Linear structural equation model using formative constructs are developed. Preliminary results are promising. Full resultswill be discussed at the conference.