1. MIS 648 Lecture 61 MIS 648 Presentation Notes: Lecture 6 Institutional Influences on the Adoption of IT

2. MIS 648 Lecture 62 AGENDA  Goals of the Lecture  Influence of Economic Development  Influence of Resource Provision  Other Influences

3. MIS 648 Lecture 63 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”

4. MIS 648 Lecture 64 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

5. MIS 648 Lecture 65 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”

6. MIS 648 Lecture 66 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.

7. MIS 648 Lecture 67 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

8. MIS 648 Lecture 68 Socio-Economic Differences HA Enhanced TAM for Internet Perceived Usefulness PU Perceived Ease of Use PEOU Intention To Use I2U Long-term Consequences LTCONS Perceived Enjoyment PENJ “Traditional” TAM Enhancements

9. MIS 648 Lecture 69 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

10. MIS 648 Lecture 610 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

11. MIS 648 Lecture 611 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

12. MIS 648 Lecture 612 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

13. MIS 648 Lecture 613 Socio-Economic Differences HA Enhanced TAM for Internet Perceived Usefulness PU Perceived Ease of Use PEOU Intention To Use I2U Long-term Consequences LTCONS Perceived Enjoyment PENJ For HAD only For HDA only For both groups

14. MIS 648 Lecture 614 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

15. MIS 648 Lecture 615 E-Readiness POER PEER Enabling Events E-C Adoption

16. MIS 648 Lecture 616 Component Details  POER: Awareness, Resources, Commitment, Governance  PEER: Government, Market Forces, Support Industries

17. MIS 648 Lecture 617 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)

18. MIS 648 Lecture 618 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.

19. MIS 648 Lecture 619 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.

20. MIS 648 Lecture 620 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.

21. MIS 648 Lecture 621 The Problem, Graphically Diffusion of Techno- logical Innovation Economic Factors Availability Of Knowledge Capacity for Understanding And Adaptation Extent of Dislocation (-) Institutional Activity

22. MIS 648 Lecture 622 King’s Model Knowledge Building Knowledge Deploy Subsidy Innovation Directive Knowledge Deploy Subsidy Mobilization Knowledge Deploy Subsidy Standard Setting Innovation Directive Subsidy Standard Setting Innovation Directive Influence Regulation Supply PushDemand Pull I II III 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

23. MIS 648 Lecture 623 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 7 th Annual Global Information Technology Management World Conference in Orlando, FLA June 2006 and at Conference on IT and Economic Development, Ghana, July 2006.

24. MIS 648 Lecture 624 The Story 1 Awareness 2 Reaction 3 Top-down planning 4 Integration & Coordination Mobilization Knowledge Building Standard Setting Knowledge Building Subsidy Knowledge Building Standard setting Innov’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