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This paper examines the factors that affect the adoption and diffusion of the Semantic Web by using a grounded theory approach. Grounded theory, a qualitative research methodology, is appropriate to achieve this, because the Semantic Web is currently at an early introduction stage. Data was gathered through in-depth interviews with fifteen informants from user organizations adopted the Semantic Web and suppliers that supported the implementation of the projects. The interview transcripts were analyzed by using the open coding scheme of grounded theory. Five factors affecting the adoption and infusion of the Semantic Web were identified. The first factor is demand pull including requirements for solving search and integration problems of existing systems and for creating new services. Second, such things as environmental conduciveness, potential business value, government sponsorship programs, active roles of suppliers, etc. affect the adoption of the Semantic Web from the perspective of technology push. Third, organizational competence including communication and absorptive capacity plays an important role in its adoption. Fourth, user's over-expectation has a negative impact on its adoption. Finally, various factors affect the infusion of the Semantic Web, such as additional investment budget for extending systems based on the Semantic Web, sharing ontologies, and demonstrable effects.