1.5 Thesis organization

312 Pages·2013·1.92 MB·English

ADOPTION PROCESS OF INFORMATION
TECHNOLOGY (IT) INNOVATIONS IN
ORGANIZATIONS

A Thesis submitted for the degree of Doctor of Philosophy
by

MUMTAZ ABDUL HAMEED

Department of Information Systems and Computing
Brunel University London

December 2012
Adoption Process of IT Innovations in Organizations
Abstract

Abstract
Several models have been developed for understanding and predicting innovation
adoption in organizations and literature has identified several factors that impact the
adoption and implementation of Information Technology (IT). This research examines the
process of adoption of IT innovations in organizations. The study explores the processes
involved in the adoption of IT and verifies the key factors that influence IT innovation
adoption in organizations.
Using a systematic literature review, the study developed a conceptual model of IT
innovation adoption in organizations. The model is a theoretical combination of Diffusion
of Innovation (DOI) theory, Theory of Reasoned Action (TRA), Technology Acceptance
Model (TAM), Theory of Planned Behaviour (TPB) and a framework which contains
characteristics of innovation, organization, environment, chief executive officer (CEO)
and user acceptance. The model represents IT innovation adoption as a stage-based
process, progressing from initiation to adoption-decision to implementation.
The study aggregated findings of past research on IT adoption to identify key factors that
influences IT adoption in organizations. The study performed a meta-analysis of
innovation, organization, environment, CEOs and user acceptance determinants to assess
the magnitude and the strength of these factors on IT innovation adoption. Results
confirmed that relative advantage, compatibility, cost, observability and trialability are
strong determinants of IT innovation adoption. In terms of organizational context, IS
department size, top management support, organizational size, IT expertise, product
champion, IS infrastructure, information intensity, resources and specialization was found
influential in the adoption of IT. As for environmental characteristics, the meta-analysis
verified the significance of external pressure, government support and competitive
pressure. Meta-analysis results verified that CEO‟s innovativeness, attitude and IT
knowledge as key determinants. The findings confirmed the importance of perceived
usefulness, perceived ease of use, subjective norm and facilitating conditions for the user
acceptance of IT in organizations.

Adoption Process of IT Innovations in Organizations i
Acknowledgement

Acknowledgements
I am grateful to Allah almighty for his guidance and blessing throughout my academic
life.
I would like to dedicate this work to my beloved mother and father. I would like to give
my heartfelt gratefulness to my parents for their constant help, attention and
encouragement.
I would like to express my sincere gratitude and deepest appreciation to my first
supervisor Dr. Steve Counsell for his advice, support and encouragement throughout the
completion of this research study. His guidance has been the inspiration for the
achievement of this academic journey. Valuable comments and insightful suggestions by
Steve have been exceedingly precious to me and without his thorough guidance, I would
never been able to come this far.
Special thanks to my wife for her support, help, patience and understanding during my
PhD degree.
Last but not least, I thank all my fellow colleagues and helpful staff in the Department of
Information Systems and Computing at Brunel University.

Adoption Process of IT Innovations in Organizations ii
Publications

Publications
Journal papers published
1. Abdul Hameed, M., Counsell, S. and Swift, S. (2012). A Conceptual Model for
the Process of IT Innovation Adoption in Organizations. Journal of Engineering
and Technology Management, 29 (3), pp. 358-390.

2. Abdul Hameed, M., Counsell, S. and Swift, S. (2012). A Meta-analysis of
Relationship between Organizational Characteristics and IT Innovation Adoption
in Organizations. Information and Management, 49 (5), pp. 218-232.

3. Abdul Hameed, M. and Counsell, S. (2012). Assessing the Influence of
Environmental and CEO Characteristics for Adoption of Information Technology
in Organizations. Journal of Technology Management and Innovation, 7 (1), pp.
64-84.

Journal papers accepted for publication
4. Abdul Hameed, M. and Counsell, S. (submitted on June 2012). User Acceptance
Determinants of Information Technology Innovation in Organizations.
International Journal of Innovation and Technology Management.
(Accepted).

5. Abdul Hameed, M. and Counsell, S. (submitted on July 2012). Establishing
Relationships between Innovation Characteristics and IT Innovation Adoption in
Organizations: A Meta-analysis Approach. International Journal of Innovation
Management.
(Accepted).

Adoption Process of IT Innovations in Organizations iii
Table of Contents

Table of Contents
ABSTRACT ......................................................................................................... i
ACKNOWLEDGEMENTS ............................................................................... ii
PUBLICATIONS .............................................................................................. iii
TABLE OF CONTENTS .................................................................................. iv
LIST OF TABLES ........................................................................................... xii
LIST OF FIGURES ......................................................................................... xv

CHAPTER 1: INTRODUCTION
1.1 Introduction............................................................................................ 2
1.2 Research background ............................................................................. 3
1.3 Current gaps in IT adoption research ...................................................... 4
1.4 Research aim and objectives ................................................................... 6
1.5 Thesis organization ................................................................................ 6

CHAPTER 2: BACKGROUND RESEARCH
2.1 Introduction.......................................................................................... 10
2.2 Definitions of IT innovation adoption ................................................... 11
2.2.1 Definition of innovation ......................................................... 11
2.2.2 Definition of Information Technology (IT) ............................. 12
2.2.3 Definition of IT adoption and diffusion .................................. 12
2.3 Reason for IT adoption in organizations .............................................. 13
2.4 Issues in studying IT innovation adoption ........................................... 14
2.4.1 Stages of IT innovation adoption ............................................ 15
2.4.2 Different levels of analysis and perspectives .......................... 18
2.5 Theories of innovation adoption .......................................................... 20
2.5.1 Diffusion of Innovation (DOI) Theory ................................... 21
2.5.2 Theory of Reasoned Action (TRA)......................................... 23
2.5.3 Technology Acceptance Model (TAM) .................................. 23
2.5.4 Technology Acceptance Model (TAM) 2 ............................... 25
2.5.5 Theory of Planned Behaviour (TPB) ...................................... 26

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2.5.6 Perceived Characteristics of Innovating (PCI) ........................ 27
2.5.7 Tri-more model ...................................................................... 28
2.5.8 Task- Technology Fit (TTF) ................................................... 29
2.5.9 Unified Theory of Acceptance and Use of Technology
(UTAUT) ............................................................................................ 30
2.6 Frameworks for organizational innovation adoption ............................ 31
2.6.1 Technology-Organization-Environment (TOE) model ............ 32
2.7 Determinants of IT innovation adoption in organizations .................... 33
2.8 IT innovation adoption success and failure .......................................... 34
2.9 Summary ............................................................................................ 37

CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction ........................................................................................ 39
3.2 Research question ............................................................................... 39
3.3 Nature of the research ......................................................................... 41
3.4 Purpose of the research ....................................................................... 42
3.5 The structure of the current research ................................................... 43
3.5.1 Theoretical analysis................................................................ 43
3.5.2 Statistical analysis .................................................................. 44
3.5.3 Interpretation phase ................................................................ 44
3.6 Research philosophy ........................................................................... 45
3.6.1 Ontology ................................................................................ 45
3.6.2 Epistemological considerations .............................................. 46
3.7 Research approach .............................................................................. 48
3.7.1 Deductive versus inductive research ....................................... 48
3.7.2 Qualitative versus quantitative research .................................. 49
3.8 Research design .................................................................................. 51
3.9 Systemic Literature Review (SLR) ...................................................... 52
3.9.1 Application of SLR ................................................................ 53
3.9.2 Evaluating data collected for SLR .......................................... 53
3.10 Meta-analyses ..................................................................................... 54
3.10.1 Advantages of meta-analysis .................................................. 55
3.10.2 Limitations of meta-analysis .................................................. 57

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3.10.2.1 Publication bias and file drawer problem ........................... 57
3.10.2.2 Garbage in and garbage out................................................ 58
3.10.2.3 Combining Apples with Oranges ....................................... 58
3.10.2.4 Small sample size .............................................................. 58
3.10.3 Application of meta-analysis for the research ......................... 59
3.11 Research Methodology ....................................................................... 59
3.12 Sample selection and searching for studies .......................................... 60
3.13 Summary ............................................................................................ 61

CHAPTER 4: PROPOSED FRAMEWORK FOR THE ADOPTION OF IT
INNOVATION ADOPTION
4.1 Introduction ........................................................................................ 63
4.2 Constructing a conceptual model for IT innovation adoption ............... 63
4.3 Process of IT innovation adoption ....................................................... 64
4.4 Study context ...................................................................................... 65
4.5 Inclusion and exclusion criteria for systemic review............................ 66
4.6 Data collection .................................................................................... 68
4.6.1 Survey questionnaire .............................................................. 69
4.6.2 Data extraction ....................................................................... 69
4.7 Coding of studies ................................................................................ 70
4.8 Characteristics of the reviewed literature ............................................. 71
4.9 Theoretical model for IT innovation adoption ..................................... 74
4.9.1 Limitation of innovation adoption theories ............................. 76
4.9.2 Integrating innovation adoption theories and frameworks ....... 76
4.10 Determinant of IT innovation adoption ............................................... 84
4.10.1 Innovation characteristics ....................................................... 84
4.10.2 Organizational characteristics ................................................. 85
4.10.3 Environmental characteristics ................................................. 87
4.10.4 CEO characteristics ................................................................ 88
4.10.5 User Acceptance Characteristics ............................................ 89
4.11 Summary ............................................................................................ 92

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CHAPTER 5: ANALYSIS OF THE DETERMINANTS OF IT
INNOVATION ADOPTION
5.1 Introduction ........................................................................................ 94
5.2 Studies examining the determinants of IT innovation adoption ............ 95
5.2.1 Interpreting the results of past studies on IT innovation adoption
...................................................................................................95
5.3 Aggregating the findings of past studies and meta-analysis ................. 96
5.4 Meta-analysis procedure ..................................................................... 97
5.5 Moderators for the relationships between determinants and IT
innovation adoption ...................................................................................... 100
5.5.1 Stage of innovation .............................................................. 100
5.5.2 Type of innovation ............................................................... 101
5.5.3 Type of organization ............................................................ 102
5.5.4 Size of organization ............................................................. 103
5.6 Study selection for meta-analysis ...................................................... 103
5.6.1 Coding for meta-analysis...................................................... 104
5.7 Selection of determinants of IT innovation adoption for the meta-
analysis ........................................................................................................ 104
5.7.1 Innovation characteristics ..................................................... 105
5.7.1.1 Relative Advantage ........................................................... 106
5.7.1.2 Cost ................................................................................... 107
5.7.1.3 Complexity ........................................................................ 107
5.7.1.4 Compatibility .................................................................... 107
5.7.1.5 Trialability ........................................................................ 108
5.7.1.6 Observability ..................................................................... 108
5.7.2 Organizational characteristic ................................................ 108
5.7.2.1 Top Management Support ................................................. 110
5.7.2.2 Organizational Size ........................................................... 111
5.7.2.3 IT Expertise ....................................................................... 111
5.7.2.4 Product Champion ............................................................. 112
5.7.2.5 Centralization .................................................................... 112
5.7.2.6 Formalization .................................................................... 112
5.7.2.7 IS Department Size ............................................................ 113

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5.7.2.8 IS Infrastructure ................................................................ 113
5.7.2.9 Information Intensity ......................................................... 113
5.7.2.10 Resources ........................................................................ 114
5.7.2.11 Specialization .................................................................. 114
5.7.3 Environmental characteristics ............................................... 115
5.7.3.1 Competitive Pressure ......................................................... 116
5.7.3.2 External Pressure ............................................................... 116
5.7.3.3 Government Support ......................................................... 116
5.7.4 CEO characteristics .............................................................. 117
5.7.4.1 CEO Innovativeness .......................................................... 118
5.7.4.2 CEO Attitude..................................................................... 118
5.7.4.3 CEO IT knowledge ............................................................ 119
5.7.4.4 Manager‟s Tenure ............................................................. 119
5.7.4.5 Manager‟s Age .................................................................. 120
5.7.4.6 Manager‟s gender .............................................................. 120
5.7.4.7 Manager‟s educational level .............................................. 121
5.7.5 User Acceptance characteristics ........................................... 121
5.7.5.1 Perceived usefulness .......................................................... 122
5.7.5.2 Perceived ease of use ......................................................... 123
5.7.5.3 Subjective norm ................................................................ 123
5.7.5.4 Facilitating conditions ....................................................... 123
5.8 Summary .......................................................................................... 124

CHAPTER 6: RESULTS AND DISCUSSIONS OF THE META-
ANALYSIS
6.1 Introduction ...................................................................................... 126
6.2 Results of innovation characteristics ................................................. 126
6.2.1 Results of aggregated tests of significance............................ 127
6.2.2 Meta-analysis: Innovation characteristics results .................. 128
6.2.3 Moderator effect results: Innovation characteristics .............. 129
6.2.3.1 Findings of moderator effect on relative advantage ............ 129
6.2.3.2 Findings of moderator effect on cost .................................. 130
6.2.3.3 Findings of moderator effect on complexity ....................... 131

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