The entrepreneur’s perception of information technology innovation adoption: an empirical analysis of the role of precipitating events on usage behavior
Sedigheh Moghavvemi
Department of Information Systems, Faculty of Business and Accountancy, University of Malaya, Kulala Lumpur, Malaysia
Noor Akma Mohd Salleh
Department of Information Systems, Faculty of Business and Accountancy, University of Malaya, Kulala Lumpur, Malaysia
Wenjie Zhao
Department of Information Systems, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia
Minna Marita Mattila
LAUREA University of Applied Sciences, Joint Services Unit: Teaching, RDI, Library and Internationalisation, Leppävaara, Finland
PP: 231 - 246
Abstract
The Unified Theory of Acceptance and Use of Technology (UTAUT) is a fairly developed model. Like any model, however, it has limitations, mainly in its relationship between the intention and use behavior. This paper will attempt to explain the influence of external factors that potentially inhibit or facilitate the performance of a behavior, as well as effects of the propensity to act on determinants toward intention for action. Based on the UTAUT limitations, we added precipitating events to measure the effect of external factors (such as government policy, financial crisis, and new market) on IT innovation and adoption and examined the effect of the propensity to act as a moderator on the relationship between the determinants intention and usage behavior, and hypothesized that in the condition where propensity to act is high, taking action will be more predictable. The data used to test the hypotheses were collected from a varied spectrum of Malaysian industries and entrepreneurs (SMEs owners). A total of 1,000 businesses were identified and questionnaires were distributed in person by the authors, and 420 completed questionnaires were returned. The research model used structural equation modeling techniques, and the current study validated the UTAUT model in the entrepreneurship context while showing that performance expectancy, effort expectancy and social influence were all positive influences on behavior intention. Facilitating conditions and behavior intention are important variables for determining the origins of behavior for IT innovation. The results of the study confirmed the moderating effects of propensity to act and precipitating factors in the model. Results indicated that precipitating events can capture the influence of external factors on the behavioural intention to take action, improve the model, and fill the intention behaviour gap. The current study shows the significant effect of life events on the behavioural intention to take action.
Keywords
IT innovation adoption, UTAUT model, entrepreneurial potential model, Malaysia, entrepreneurship
Article Text
One of the most significant current discussions and driving force behind many socioeconomic changes is the application of information technology (IT) (Dierckx & Stroeken, 1999; Yu & Tao, 2009; Cooper & Zmud, 1990). The sustained and accelerating growth of expenditures on information technologies in an organization precipitate a lot of research in technology adoption (Venkatesh & Zhang, 2010). IT innovation in an organization creates changes by improving its level of performance or effectiveness, and the decision of whether an individual or organization will adopt a particular innovation has motivated a great deal of research across multiple disciplines. The IT innovation field is researched to understand the factors that inhibit or facilitate its adoption and diffusion of arising IT-based processes or products within potential adopter (which can be individuals, organizational units, or groups of inter-related firms) (Fichman, 2004). Swanson and Ramiller (2004) defined IT innovation as an innovation in digital and communications technology and their applications, and in process terms, "as the pursuit of IT applications new to an organization". Their vision oriented on how IT came to be applied in novel ways and the emergence of new technologies. On an organizational level, it involves the adoption of an idea, new products and services, process, technology, policy, structure or behavior that is new to the organization (Damanpour & Wischnevsky, 2006; Lyytinen & Rose, 2003; Ling & Nasurdin, 2010).
Small and Medium Enterprise (SMEs) plays a significant role in the economic growth and is considered to be the backbone of industrial development (Saleh & Ndubisi, 2006; Ramayah et al., 2003; Alam, 2009). However, the amount of adoption of IT innovation in SMEs is relatively lower than large scale enterprises (Alam, 2009). Researchers have continuously studied what organizational process facilitates the generation or adoption of innovation, and why some SMEs are able to adopt or generate more innovations compared to others (Damanpour & Schneider, 2006). Review of the research showed that despite many studies, these questions have not been clearly answered and was recommended for further research (Damanpour & Wischnevsky, 2006; Tidd, 2001; Venkatesh et al., 2008). This encouraged more researches to identify the factors that affect individual/organizational behavior regarding IT innovation with different theories/models to study technology acceptance and use in different contexts.
One of the most comprehensive and definitive theoretical models in the Information system is The Unified Theory of Acceptance and Use of Technology (UTAUT), developed by Venkatesh et al. (2003). Although the UTAUT model is a robust model and is widely used in the field of information and technology, it does not fully capture the influence of the external factors that potentially inhibit or facilitate the performance of a behavior, as well as the effect of the propensity to act. This study used the UTAUT model as a base model and added two other factors: (1) precipitating events, to measure the effect of external factors (environmental events such as government policy, loan, financial crisis, new markets, and financial resources) and (2) propensity to act, to measure volitional aspect of the behavior on the model. Therefore, researchers attempt to find the factors which impact entrepreneur's intention to use IT innovation and innovation use behavior in their job.
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