Importance of Perceived Strategic Value of E- Commerce: The Interaction Effect of Personal Innovativeness

Authors

  • Muhammad Saqib Malik Department of Computer and Information Sciences, University of Strathclyde (UK)
  • David McMenemy Department of Computer and Information Sciences, University of Strathclyde (UK)

DOI:

https://doi.org/10.34630/bobcatsss.vi.4975

Keywords:

Perceived Strategic Value of E-Commerc, Personal Innovativeness in Information Technology, Intention to adopt E-Commerce, E-Commerce in developing economies, PLS-SEM

Abstract

This project explores the interaction effect of Personal Innovativeness in Information Technology (PIIT) on the relationship between determinants of Perceived Strategic Value of E-Commerce (PSVEC) and attitude towards E-Commerce adoption. Based on a survey of 15 carefully selected organisations from both the public and private sectors in Pakistan, the objectives are to (a) have an idea of what decision- makers in organisations think about the strategic value of E-Commerce in Public and Private sectors (b) examine the relationship between determinants of PSVEC and attitude towards E-Commerce adoption (c) and how PIIT impacts the relationship between determinants of PSVEC and attitude towards E-Commerce adoption. To ensure a higher degree of accuracy of results, all the variables in this study were measured on highly respected and validated scales from previous studies (Agarwal & Prasad, 1998; Subramanian & Nosek, 2001; Venkatesh & Davis, 2000). A second-generation technique; PLS Structural Equation Modelling (PLS-SEM) was used to analyse and process the data. Behavioural sciences suggest that Innovation adoption at the organisational level is more complicated than individual-level adoption as it involves both personal and organisational level factors (Rogers, 1995). E- Commerce adoption within an organisation heavily depends on the personal perceptions, beliefs and attitudes of the management (Ajzen, 1985; Davis, 1989). The study contributes to the existing knowledge by measuring and establishing relationships between personal-level factors and attitudes towards organisational level innovation adoption. An important (and unique) aspect of this study is that unlike most of the previous studies, more relevant and domain-specific latent variable PIIT is studied instead of the generic variable of personal innovativeness. As the E-Commerce adoption rate in developing economies is very low, the UN, WTO and World Bank have emphasised the developing economies to adopt E-Commerce and have initiated several programs to accelerate the E-Commerce adoption rate in underdeveloped countries. The study is likely to provide valuable insight into the nature of E- Commerce adoption in developing economies context.

References

Agarwal, R., & Prasad, J. (1998). A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology. Information Systems Research, 9(2), 204-215.

Ajzen, I. (1985). From intentions to actions: A theory of planned behavior. In J. Kuhl & J. Beckman (Eds.), Action-control: From cognition to behavior. Heidelberg: Springer.

Barua, A., Kriebel, C. H., & Mukhopadhyay, T. (1995). Information Technologies and Business Value: An Analytic and Empirical Investigation. Information Systems Research, 6(1), 3-23.

Brynjolfsson, E., & Hitt, L. M. (1996). Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending. Management Science, 42(4), 541-558.

Caldeira, M. M., & Ward, J. M. (2003). Using resource-based theory to interpret the successful adoption and use of information systems and technology in manufacturing small and medium- sized enterprises. European Journal of Information Systems, 12(2), 127-141. doi:10.1057/palgrave.ejis.3000454

Chi Chu, S., Lawrence, C. L., VanHui, Y., & Cheunga, W. (2007). Evolution of e-commerce Web sites: A conceptual framework and a longitudinal study. Information & Management, 42(2), 154-164.

Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319-340.

Del, A. R., Ana, R., & Antonio, P. M. (2006). Organizational factors affecting Internet technology adoption. Internet Research, 16(1), 94-110.

Doukidis, G., Poulymenakou, A., Terpsidis, I., Themistocleous, M., & Miliotis, P. (1998). The Impact of the Development of Electronic Commerce on the Employment Situation in European Commerce. Retrieved from Athens: ENACHE, M. C. (2018). E-commerce Trends Economics and Applied Informatics, 24(2), 67-71.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

Grandon, E., & Pearson, J. M. (2014). Strategic Value and Adoption of Electronic Commerce: An Empirical Study of Chilean Small and Medium Businesses. Journal of Global Information Technology Management, 6(3), 22-43. doi:10.1080/1097198x.2003.10856354

Hair, J. F. (1992). Multivariate data analysis with readings (3rd ed.). New York: Toronto et al.

Hair, J. F. (2017). A primer on partial least squares structural equation modeling (PLS-SEM), 2. ed. Thousand Oaks, California: SAGE Publications, Inc.

Harding, T., & Javorcik, B. S. (2007). Developing economies and international investors: Do investment promotion agencies bring them together?. Policy Research Working Paper, No. 4339. Washington, DC: World Bank. Retrieved from https://openknowledge.worldbank.org/handle/10986/7289

Herrero Crespo, Á., & Rodríguez del Bosque, I. (2008). The effect of innovativeness on the adoption of B2C e-commerce: A model based on the Theory of Planned Behaviour. Computers in Human Behavior, 24(6), 2830-2847. doi:10.1016/j.chb.2008.04.008

Hitt, L. M., Wu, D. J., & Zhou, X. (2002). Investment in Enterprise Resource Planning: Business Impact and Productivity Measures. Journal of Management Information Systems, 19(1), 71-98. doi:10.1080/07421222.2002.11045716

Hubley, A. M. (2014). Discriminant Validity. In A. C. Michalos (Ed.), Encyclopedia of Quality of Life and Well-Being Research (pp. 1664-1667). Dordrecht: Springer Netherlands.

Hwang, Y. (2005). An Empirical Study of Online Trust and Consumer Behavior: Cultural Orientation, Social Norms, and Personal Innovativeness in Information Technology. In Proceedings of the International Conference on Information Systems, ICIS 2005, December 11-14, 2005, Las Vegas, NV, USA. Retrieved from https://dblp.uni-trier.de/db/conf/icis/icis2005.html#Hwang05

Hwang, Y. (2011). Investigating the Influence of Cultural Orientation and Innovativeness on ERP Adoption. Journal of Global Information Technology Management, 14(3), 54-74. doi:10.1080/1097198x.2011.10856543

Jelenc, L., & Pisapia, J. (2016). Building Bridges Between Entrepreneurship and Strategic Thinking. In Neostrategic Management (pp. 75-93).

Jeong, N., Yoo, Y., & Heo, T.-Y. (2009). Moderating effect of personal innovativeness on mobile-RFID services: Based on Warshaw's purchase intention model. Technological Forecasting and Social Change, 76(1), 154-164. doi:10.1016/j.techfore.2008.08.007

Jianlin, W., & Qi, D. (2010). Moderating Effect of Personal Innovativeness in the Model for E-store Loyalty. In 2010 International Conference on E-Business and E-Government (pp. 2065-2068). doi: 10.1109/ICEE.2010.522.

Jorfi, S., Nor, K. M., & Najjar, L. (2017). An empirical study of the role of IT flexibility and IT capability in IT-business strategic alignment. Journal of Systems and Information Technology, 19(1/2), 2-21. doi:10.1108/jsit-10-2016-0067

Kearns, G., & Lederer, A. (2001). Strategic IT Alignment: A Model for Competitive Advantage. In ICIS 2001 Proceedings. 2. http://aisel.aisnet.org/icis2001/2

Lawrence, E., Corbitt, B., Tidewell, A., Fisher, J., & Lawrence, J. (1998). Internet commerce: Digital Modals for business. Sydney: John Wiley & Sons.

Lee, H. Y., Qu, H., & Kim, Y. S. (2007). A study of the impact of personal innovativeness on online travel shopping behavior-A case study of Korean travelers. Tourism Management, 28(3), 886-897. doi:10.1016/j.tourman.2006.04.013

Limayem, M., Khalifa, M., & Frini, A. (2000). What Makes Consumers Buy from Internet? A Longitudinal Study of Online Shopping. EEE Transactions On Systems, Man, and Cybernetics—Part A: Systems and Humans, 30(4), 421-432.

Lu, J. (2014). Are personal innovativeness and social influence critical to continue with mobile commerce? Internet Research, 24(2), 134-159. doi:10.1108/IntR-05-2012-0100

Lu, J., Yao, J. E., & Yu, C.-S. (2005). Personal innovativeness, social influences and adoption of wireless Internet services via mobile technology. The Journal of Strategic Information Systems, 14(3), 245-268.

McKay, J., & Marshall, P. (2004). Strategic Management of E-Business. Brisbane: John Wiley & Sons.

McQuitty, S., & Peterson, R. T. (2000). Selling home entertainment on the Internet: an overview of a dynamic marketplace. Journal of Consumer Marketing, 17(3), 233-248.

Mithas, S., & Rust, R. T. (2016). How information technology strategy and investments influence firm performance: Conjecture and empirical evidence. MIS Quarterly, 40(1), 223-245.

Molla, A., & Licker, P. S. (2005). Perceived E-Readiness Factors in E-Commerce Adoption: An Empirical Investigation in a Developing Country. International Journal of Electronic Commerce, 10(1), 83-110. doi:10.1080/10864415.2005.11043963

Molla, A., & Licker, P. S. (2005a). eCommerce adoption in developing countries: A model and instrument. Information & Management, 42(6), 877-899.

Oh, W., & Pinsonneault, A. (2007). On the Assessment of the Strategic Value of Information Technologies: Conceptual and Analytical Approaches. MIS Quarterly, 31(2), 239-265.

Palvia, P. C., & Palvia, S. C. (1999). An examination of the IT satisfaction of small-business users. Information & Management 35, 127-137.

Pitt, L., Berthon, P., Watson, R. T., & Zinkhan, G. M. (2002). The Internet and the birth of real consumer power. Business Horizons, 45(4), 7-14.

Rogers, E. M. (1995). Diffusion of Innovations (4th ed.). NY: The Free Press.

Saffu, K., DeBerry‐Spence, B., Walker, J. H., & Hinson, R. (2008). Strategic value and electronic commerce adoption among small and medium‐sized enterprises in a transitional economy. Journal of Business & Industrial Marketing, 23(6), 395-404. doi:10.1108/08858620810894445

Saffu, K., Walker, J. H., & Mazurek, M. (2012). Perceived Strategic Value and e-Commerce Adoption among SMEs in Slovakia. Journal of Internet Commerce, 11(1), 1-23. doi:10.1080/15332861.2012.650986

Santhaam, R., & Hartono, E. (2003). Issues in linking information technology capability to firm performance. MIS Quarterly, 27, 125-153.

Segars, A. H., & Grover, V. (1998). Strategic Information Systems Planning Success: An Investigation of the Construct and Its Measurement. MIS Quarterly, 22(2), 139-163.

Soh, C., & Markus, M. L. (1995). How it creates business value: a process theory synthesis. Paper presented at the Proceedings of the 16th international conference on information systems, Amsterdam, The Netherlands.

Stanley, M. (2020). Emerging Markets Portfolio. Retrieved from https://www.morganstanley.com/im/en-us/financial-advisor/product-and-performance/mutual- funds/emerging-market-equity/emerging-markets-portfolio.shareClass.L.html

Statista. (2020). Pakistan Country Report. Retrieved from https://www.statista.com/

Subramanian, G. H., & Nosek, J. T. (2001). An Empirical Study of the Measurement and Instrument Validation of Perceived Strategy Value of Information Systems. Journal of Computer Information Systems, 41(3), 64-69. doi:10.1080/08874417.2001.11647010

Turban, E., Lee, J., King, D., & Chung, H. (1999). Electronic Commerce: A Managerial Perspective. NJ: Prentice-Hall.

UNCTAD. (2017). UNCTAD B2C E-COMMERCE INDEX 2017. Retrieved from https://unctad.org/en/PublicationsLibrary/tn_unctad_ict4d09_en.pdf

UNCTAD. (2019). Digital Economy Report 2019. Value creation and capture: implications for developing countries. Retrieved from https://unctad.org/system/files/official-document/der2019_en.pdf

Venkatesh, V., & Davis, F. D. (2000). A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies. Management Science, 46(2), 186-204.

Wang, Y., & Ahmed, P. K. (2009). The moderating effect of the business strategic orientation on eCommerce adoption: Evidence from UK family run SMEs. The Journal of Strategic Information Systems, 18(1), 16-30. doi:10.1016/j.jsis.2008.11.001

Wijesundara, T., & Xixiang, S. (2018). Social Networking Sites Acceptance: The Role of Personal Innovativeness in Information Technology. International Journal of Business and Management, 13(8), 75.

Downloads

Published

2023-02:-09

How to Cite

Malik, M. S. ., & McMenemy, D. . (2023). Importance of Perceived Strategic Value of E- Commerce: The Interaction Effect of Personal Innovativeness. Bobcatsss, 185–196. https://doi.org/10.34630/bobcatsss.vi.4975