Internet technology adoption as an organizational event: an exploratory study across industries

Abstract

In this exploratory study, Internet adoption decisions are examined from an organizational perspective. We postulate that when the technology considered for adoption demands a shift of paradigm, involves support of a corporate-wide infrastructure, and/or nascent skills of technology developers, individual-based technology adoption models may lack explanation power. This study identifies eight factors that may facilitate or inhibit technology adoption.Results from the interviews of top managers reveal that Internet technologies indeed demand the considerable deliberation in adoption decisions since Internet technologies requires a re-examination of existing business models and strategies.Yet, interestingly, this same technology was adopted with very different reasoning logic, ranging from using the Internet as an additional channel for promotion and advertisement to being pressured from competitors to adopt (the "we gotta have one, too" syndrome).A wide range of research on technology adoption has been published during the last decade. Many of these studies have either adapted Davis's Technology Acceptance Model (TAM) [6] by adding distinct variables [11,18] or have tested the TAM under different conditions [20,22]. The findings of these studies have furthered our understanding of the technology adoption and acceptance process. However, the issue of technology adoption has primarily focused on the understanding of individual behavior, not the adoption behavior of an entire organization. As new technology may require new infrastructure and nascent skills that are beyond individual control, it becomes necessary that researchers investigate the decisions made by those in a position to influence technology adoption for an entire organization. In addition to determining what factors influence an organization's decision to adopt a new technology, we should also consider how the technology is adopted.This exploratory study investigates the technology adoption decision process for organizations and identifies factors that affect organizational technology adoption.The focus of our research was the organizational adoption of Internet technologies. Internet technologies were selected because of the strong network externality property associated with them. Such technology adoption decisions not only have an internal impact (e.g., employees' usage) but they have an external implication as well (e.g., fulfilling customers' needs, matching competitors' offerings).Interviews were held with upper-level managers from 76 companies within a mid-sized university community.Selected companies varied in age, company size, and product industry, with ownership ranging from national to local levels. Studying the development and strategies for Internet technologies from this wide range of businesses is not only valuable in our understanding of organizational adoption, but it also furthers our understanding of the impact that the Internet has on the small-and mid-sized companies that are less frequently researched in electronic commerce studi...

Key factors driving the success of technology adoption: Case examples of ERP adoption

“…The ability of TAM to predict technology adoption has been proven to be applicable; however, some researchers argue that the model merely focuses on an individual as the unit of study, and overlooks some other characteristics that exist in the reality of implementation process in firms [4,[16][17][18]. In the organizational adoption context, factors influencing adoption, at both firm and individual level could be divided into two categories which are internal and external factors [18][19].…”

“…In the organizational adoption context, factors influencing adoption, at both firm and individual level could be divided into two categories which are internal and external factors [18][19].…”

Towards a universal model of internet banking adoption: initial conceptualization

“…Channel cost In developed countries, the costs saved by financial institutions in transacting online, rather than having more branches, are passed on to customers, such that internet banking services become cheaper for them. In developing countries, the costs of computer ownership, internet connection, and extra fees charged for online banking services are major affecters of internet banking adoption Ramaswami et al (1998), Sathye (1999), Mols (1999), Mueter et al (2005, Hamilton and Hewer (2000), Suganthi et al (2001), Li (2001), King and Gribbins (2002), Howcroft et al (2002), Sohail and Shanmugham (2003), Singh (2004), Shih and Fang (2004), Laforet and Li (2005), Rotchanakitumnuai and Speece (2005) (2011) 10. Legal, regulatory and supervision policies guiding the internet banking channel In countries where legal, regulatory and supervision frameworks have been clearly instituted, the population will likely have more confidence to adopt and continue using internet banking than in areas with little or no laws, regulation, and supervision to guide internet banking services Table II. 656 IJBM 32,7 which will in turn predict their attitudes and intention towards the adoption.…”

“…The implication deducible from our findings and those of some others is that in developed countries, the costs saved by financial institutions in transacting online with customers are normally passed on to customers, such that IB services become cheaper for the customers. This motivates others to try using the IB-option as well (see King and Gribbins, 2002;Howcroft et al, 2002;Sohail and Shanmugham, 2003;Laforet and Li, 2005;Rotchanakitumnuai and Speece, 2005;Lichtenstein and Williamson, 2006;Poon, 2008). On the contrary, the costs of computer ownership, internet connection, and "special service" fees charged by financial institutions for IB-usage in developing countries often constrain IB-adoption in those countries (see Shih and Fang, 2004;Chiemeke et al, 2006;Boateng and Molla, 2006;Onyia and Tagg, 2011).…”

Adoption of Web-Based Applications in the Financial Sector: The Case of Online Insurance

“…If an insurance firm wants to use the Internet as a sales vehicle, it can create a transactional website and generate new revenues by selling online. Other organizations may have dual intentions, developing websites to inform and create relations with the customers, as well as to sell products/services (King & Gribbins, 2002).…”