Although communication, collaboration, and transaction processing are some of the important business functions facilitated by the web, timely dissemination of information is critical for ultimate customer satisfaction and potential profitability. The purpose of this study is to determine the affect that contextual factors such as IS maturity, organizational attributes, and environmental characteristics have on perceived usefulness and adoption of web-enabled services for information dissemination in organizations. The key focus of this article is "organizational adoption" as opposed to individual acceptance for which there have been numerous studies. A research model and eight hypotheses were developed based on past literature. Data were collected from senior managers in small business organizations using an instrument that was carefully developed and tested. Structural equation modeling was performed to test the goodness of fit of the model and the hypotheses. The model suggested adequate fit. The results indicate the importance of perceived usefulness in organizational adoption of web-enabled services for information dissemination. Other important factors for adoption are IS maturity, IS budget and organizational slack.