MIS 648 Lecture 6 1

MIS 648 Presentation Notes: Lecture 6

Institutional Influences on the Adoption of IT

MIS 648 Lecture 6 2

AGENDA

Goals of the Lecture Influence of Economic Development Influence of Resource Provision Other Influences

MIS 648 Lecture 6 3

Goals of the Lecture

Understanding of the economic effects on the uptake of technology in countries and organizations

Understanding of the effects of the business environment, in particular national “readiness”

MIS 648 Lecture 6 4

Brown and Licker

Another TAM study Not independent of culture, but also

involves digital divide within a developing country.

Purpose of study was to examine differences in Internet adoption and usage behavior among people of different socio-economic backgrounds

MIS 648 Lecture 6 5

Background to the Research

Ref. South Africa presentation “Historically advantaged” vs. “Historically

disadvantaged” is the economic variable distinguishing populations

Historic advantage (HA) is measured by home language as economics correlates with race which correlates with language (there are some errors, of course)

HAD=“English” and HDA=“African”

MIS 648 Lecture 6 6

Why HDA should influence Internet Usage

HDA limits income Internet access either costs money at home or

internet café or is obtained at work site HDA individuals are far less likely to work or

have white collar jobs (50% or higher unemployment rates)

Also Internet usage requires literacy (not investigated in this research, but obviously a factor highly correlated with education and hence income and hence HA.

MIS 648 Lecture 6 7

Extending TAM for Internet

TAM: PU and PEOU predict adoption of technology (USE)

But TAM may be culture specific Long-term consequences (LTCONS)

and Perceived Enjoyment (PENJ) were added, with HA influencing these relationships

MIS 648 Lecture 6 8

Socio-EconomicDifferences

HA

Enhanced TAM for Internet

PerceivedUsefulness

PU

PerceivedEase of Use

PEOU

IntentionTo Use

I2U

Long-term ConsequencesLTCONS

Perceived EnjoymentPENJ

“Traditional”TAM

Enhancements

MIS 648 Lecture 6 9

Hypotheses

PU I2U PEOU I2U > for HDA PEOU PU > for HDA LTCONS I2U > for HAD PENJ I2U > for HAD

Traditional for TAM Research

Familarity, English,

Barriers to Use

Ditto

Career Sophistication

Experience, focus on Enjoyment rather

than instrumentality

MIS 648 Lecture 6 10

Procedures

585 students in classes 269 respondents using English or an

African home language PU, PEOU, PENJ LTCONS from

literature. Use measured on own scales 59% female 94% <21 yrs old 94% in first year of study 65% English; 35% African

MIS 648 Lecture 6 11

Raw Findings

HAD exceed HAD on years experience, but lowered frequency and intensity dramatically, and had same perceived skills.

HAD, HDA use patterns similar except more use for leisure

All measures were at 5.0 or above on 7-pt. scale (except HAD IU of 4.9), showing “agree” tendencies

MIS 648 Lecture 6 12

Results (support for hypotheses)

PU I2U STRONG PEOU I2U > for HAD Weak PEOU PU > for HAD STRONG LTCONS I2U > for HAD Supported PENJ I2U > for HAD STRONG

MIS 648 Lecture 6 13

Socio-EconomicDifferences

HA

Enhanced TAM for Internet

PerceivedUsefulness

PU

PerceivedEase of Use

PEOU

IntentionTo Use

I2U

Long-term ConsequencesLTCONS

Perceived EnjoymentPENJ

For HAD only

For HDA only

For both groups

MIS 648 Lecture 6 14

Molla and Licker

Readiness is a state of potential adoption

E-readiness is the state of potentially being able and willing to adopt e-commerce

There are two major components: Organizational e-readiness External e-readiness

MIS 648 Lecture 6 15

E-Readiness

POER

PEER

EnablingEvents

E-CAdoption

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Component Details

POER: Awareness, Resources, Commitment, Governance

PEER: Government, Market Forces, Support Industries

MIS 648 Lecture 6 17

The Research

1000 organizations in S Africa (from business directory) were sent questionnaires

150 usable responses were collected (15% response rate).

Items were based on resource based theory (next slide)

Dependent variable was level of adoption (initial vs. institutionalization)

MIS 648 Lecture 6 18

Resource Based Theory

Institutional competitive advantage is based on acquisition and control of unique, irreproducible resources

These resources can be physical, managerial, or intellectual and consist of objects, supplies, labor, experience, knowledge, processes, etc.

Uniqueness and reproducibility are scales rather than absolutes.

MIS 648 Lecture 6 19

Conclusions

Initial adoption is influenced more by organizational factors than Environmental ones

Institutionalization is more influenced by environmental factors than organizational

In a sense, organizational factors are hygiene factors leading to “testing the waters”; the environment dictates whether or not e-commerce becomes institutionalized.

MIS 648 Lecture 6 20

Institutional Influences King, J, Gurbaxani, V, Kraemer, K, McFarlan, W., Raman, K. &

Yap, C. (1994) Institutional factors in information technology innovation, Information Systems Research, 5(2), 139-169

Institutions influence or regulate Institutions can use demand pull or supply

push Government is a major institutional influence

through demand pull. In the developing world, NGOs are an influence. Everywhere, educational institutions provide influence through supply push.

MIS 648 Lecture 6 21

The Problem, Graphically

Diffusionof

Techno-logical

Innovation

EconomicFactors

AvailabilityOf Knowledge

Capacity forUnderstanding

AndAdaptation

Extent ofDislocation

(-)

Institutional Activity

MIS 648 Lecture 6 22

King’s Model

Knowledge BuildingKnowledge Deploy

SubsidyInnovation Directive

Knowledge DeploySubsidy

Mobilization

Knowledge DeploySubsidy

Standard SettingInnovation Directive

SubsidyStandard Setting

Innovation Directive

Influence

Regulation

Supply Push Demand Pull

I IIIII IV

Research at Universities,

eg.

Education, Training

Financial Support

Awareness Campaigns

Bringing order to “chaos”

Use of IT by Gov’t, eg.

Creating Supply of IT

Creating Demand for IT

Motivation, argumentation

Rules, commands

MIS 648 Lecture 6 23

The Barbados Story

Research Done in 2005 concerning the period 1999-2003

Focus was on the growth of Ecommerce usage in Barbados

Reported on at 7th Annual Global Information Technology Management World Conference in Orlando, FLA June 2006 and at Conference on IT and Economic Development, Ghana, July 2006.

MIS 648 Lecture 6 24

The Story

1Awareness

2Reaction

3Top-down planning

4Integration & Coordination

Mobilization

Knowledge Building

Standard Setting

Knowledge Building

Subsidy

Knowledge

Building Standard settingInnov’n Directive

Knowledge deployment Knowledge Building Standard setting

Mob: Free Trade Area of the Americas (1994; 1999)

KB: BCC, UWI, Nat’l Council on

Sci. & Tech

SS: Prime Minister’s initiative (2000); Green

Paper on Telcoms (2000); KB: CIS;

Sub: $5M innovation fund

Inn. Direct: E-gov’t (2001);

SS: Electronic Transactions Act

KB: MOC seminars with NCS and CIS;

CARICOM e-readiness survey; CS

grads from UWI

KD: MOE scholarships; MOC collects

data on EC; SS: CIS creates

guidelines for EC in

CARICOM