E-readiness Models

Whilst the cognitive factors discussed in last sections of the chapter have resonance with technological implementation, it is perhaps the nature of the industry, that is, the state of technological development and the markets that are the final arbiters of adoption. Thus other researchers have focused more on these factors in the decision to adopt technological change. These researchers consider industry factors and environmental conditions as the drivers for change, not necessarily the behaviours, norms, and beliefs that come from individual, organisational or national culture.

Researchers have recognised a continuum of industry-based factors, such as strategic positioning, supply chain logistics and information-sharing, that motivate the organisations to respond (Piris, Fitzgerald & Serrano 2004, Claycomb, Iyer & Germain 2005). Others have emphasised the government’s role in providing policy, regulations and incentives to invite the private sector to respond to technological change, whilst competition and market positioning are also engaged researchers (Selim 2008, Molla & Licker 2005, Claycomb et al. 2005, Thatcher & Zhu 2006). Internal factors are of research interest, inasmuch as the organisation’s characteristics included ownership, leadership, size, vision and planning, all of which impact change management and technology uptake (King & Gribbins 2002, Lee & Xia 2006, Ko, Kim, Kim & Woo 2008, Claycomb et al. 2005, Ke & Wei 2008). Further, access to sufficient relevant human and technology resources impacted technology adoption (Ko et al. 2008, Selim 2008). As becomes apparent, researchers tend to cluster these aspects, factors and dimensions as external to the organisation (with government as an adjunct), and internal variables (Chengalur-Smith & Duchessi 1999, Molla & Licker 2005, Selim 2008, Thatcher & Zhu 2006).

3.6.1.The Perceived E-readiness Models

An extended e-commerce adoption model focusing on developing economies was proposed by Molla and Licker (2005), who surveyed 150 businesses in South Africa. The model considers the relevant contextual and organisational factors that can affect e- commerce adoption in developing countries. The perceived e-readiness model (PERM) comprises two constructs, first, perceived organisational e-readiness (POER), and second, perceived external e-readiness (PEER). Each construct includes factors that

75 impact the organisation’s initial e-commerce adoption, (see Figure 3.15). The study found that the majority of these factors were meaningful predictors of e-commerce adoption.

Source: Molla and Licker 2005, p.887

Figure 3.15: Perceived e-readiness model for assessing e-commerce adoption in developing countries.

In support of Molla and Licker’s model, Selim (2008) listed similar and further factors on e-commerce adoption:

• external factors: industry, IT environment, government environment,

competition; and

• organisational readiness factors: corporate strategy, financial status, human

resources capability and anticipated benefit.

In a survey of 524 firms in Abu Dhabi in the United Arab Emirates, also a developing country, Selim (2008) extracted eight external and six internal factors affecting e-commerce acceptance. The study concluded that e-readiness is grounded in embedding e-commerce adoption at both an organisational and national, or societal, level. Interestingly, the study supported the argument that organisation culture (firm culture) is a variable of the adoption process. Firm culture in Selim’s discussion referred to ‘the collaboration level and style among different managerial levels and team spirit and dedication to the business processes’ (p. 11).

76 The Technology, Organization, and Environment context (TOE) framework developed in 1990 by Tornatzky and Fleischer (1990) took this broader perspective by examining the overall contextual basis for the adoption of a technology in a particular location. It identified three aspects of an enterprise's context that can influence the process by which it adopts and implements a technological innovation: technological context, organizational context, and environmental context. The TOE framework as originally presented and later adapted in IT adoption studies, presented an approach that shows greater cognizance of the effect of context on technology adoption. It provided a useful analytical framework for studying the adoption and assimilation of different types of IT innovation in a specific locale, (see Figure 3.16).

Source: Tornatzky and Fleischer 1990

Figure 3.16: Technology, organization, and environment framework

Another factor impinging on adoption is the alignment of technology development with business strategy. For example, Hyvönen (2007) studied the relationship between a customer-focused strategy and the use of financial information systems as a moderator for customer performance, showing that ‘a fit between the customer-focused strategy and financial performance measures improves customer performance’ (p. 343).

Organisations focused on the local market, Atkins (1994) argued, consider information systems for cost reduction. Others used information systems for market positioning, and the author concluded that an information systems strategy should support the organisation’s business strategy. Pires and Aisbett (2003) concurred;

77 information and communication technology practices should be considered as a competitive advantage in any business strategy. They concluded that e-commerce adoption must be evaluated because it may change the organisation’s internal values and thus its competitive advantage.

Part of the continuum of factors mentioned earlier was logistics, in the form of supply chain management. In this case, a specific information system relates to a number of organisations in a B2B relationship who share a common product line. The information system in this environment is not only a means to cost reduction and higher performance, but is imposed on the chain members (Lai, Wong & Cheng 2006).

3.7.

Summary

This survey of early models showed a commonality of approach, although different assessments of key change points occur. In the early part of the decade, major organisations in the private and public sectors were exploring information systems as the means by which they could effectively and securely improve productivity and reduce costs. Thus the models focus on the early stages of known factors, and tend to extrapolate into visions and missions. See Table 3.2 provides a summary of the factors impacting technology adoption.

78 Table 3.2: A Summary of Factors Affecting E-commerce Adoption

Constructs by Factors Resources Culture Cultural dimensions :

Power distance Individualism Masculinity

Uncertainty avoidance Long-term orientation

Hofstede 1980, Tan et al. 1998, Al- Gahtani et al. 2007, Silvius 2008, Straub 1994Sang & Lee 2009, Suebsin & Gerdsri 2009, Wu et al. 2008, , Hartwick & Barki 1994, Jeffrey & Fawzy 1999, Yoh et al. 2003; Hansen et al. 2004, Hu et al. 1999, Chau & Hu 2002, Legris et al, Anderson & Schwager 2004, Marchewka et al. 2007, Shaobo & Gang 2008, Wang & Yang 2005; Wills et al. 2008

Technology Adoption Theories

Perceived ease of use, Perceived Usefulness, Attidued toward beahvior, Subjective norm, Percived behavioural control, Relative advantage, Compatibility, Complexity Trialability, Observability, Attitudinal beliefs

Normative beliefs, Control Beliefs, Image Visibility, Output quality, Results,

demonstrability, Voluntariness, Experiences Demographic information, Facilitating condition.

Rogers 1962, Venkatesh et al. 2003, , Davis 1989, Davis et al. 1989, Venkatesh and Davis 2000, Fishbein & Ajzen 1975, Ajzen & Fishbein 1980, Ajzen 1985, Organisation Culture Developmental Rational Hierarchical Group (team)

King & Gribbins 2002, To et al. 2008, Suebsin & Gerdsri 2009, Hodges & Hernandez 1999, Quinn and Rohrbaugh 1981, Bedeian 1987, Harrington & Santiago 2006, Kim & Lee 2006, Ruppel and Harrington 2001,

Organisation Internal and External e- readiness

Internal: Governance, Commitment, Awareness, Human Resources, Business Resources, Technology Resources

External: Market Forces, Government, Supporting Industries

Roger 1962, Molla & Licker 2005, Kurnia 2007, Selim 2008, Abofara 2004, Rodrigues 2002, Kurnia 2007 Sumner & Klepper 1998, McKay & Marshall 2004, Bahli & Rivard 2005, Belcourt 2006, Tornatzky and Fleischer 1990

For the purposes of this study, the principles underlying the models are accepted. The next chapter (Chapter 4) discusses the theory and models selected for this research with justification of the selected research methodology to answer the research question.

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