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The paper deals with the diffusion of e-learning model as an innovation in a higher education institution (university, faculty). Apart from the two basic phases in the process, namely the initiation phases – until the decision about the innovation has been made and the implementation phases which follows after that and two basic individual components of the diffusion of innovation model; previous related knowledge and perceived properties of innovation, the model described here recognizes the factors of the organization environment which influence its potential capacity to absorb innovation. The qualitative research disclosed five key factors of the social environment, six factors of the business environment and sixteen factors of the internal environment which have impact on the organization in the initial phase of the process of diffusion of e-learning in faculties in the Republic of Croatia.