technology adoption determinants

389 Pages·2011·1.68 MB·English

TECHNOLOGY ADOPTION DETERMINANTS: STRATEGIC
MANAGEMENT IMPLICATIONS FOR SMALL, OWNER-
MANAGED TRAVEL FIRMS IN JAMAICA

Andrew J. Spencer

A thesis submitted in partial fulfilment of the requirements of Bournemouth
University for the degree of Doctor of Philosophy

December, 2011

Bournemouth University

School of Tourism

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This copy of the thesis has been supplied on condition that anyone who consults
it is understood to recognize that its copyright rests with its author and due
acknowledgement must always be made of the use of any material contained in,
or derived from, this thesis.
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Abstract
This thesis begins by thoroughly reviewing classical theories of adoption such as
the diffusion of innovation theory, and the technology acceptance model, and
subsequently analyses literature on pertinent theories which have been highlighted
as drivers of adoption such as the Resource-Based View, Firm Strategy, Culture
and the Digital Divide. Prior to this however, the afore-mentioned classical
adoption theories were contrasted with the Post-Internet debate which explored
Information Asymetry and Disintermediation. Having conducted this review it
was determined that the leadership/ownership role had not been sufficiently
emphasized in technology adoption, therefore this work sought to more clearly
identify these personal factors in combination with the previously explored
factors. The overarching theory of Organizational Decision-Making was used to
provide a framework to identify drivers of decision-making processes in general
and then apply these to the internet adoption context. This thesis aims to identify
the combination of antecedents of technology adoption for travel firms and distil
factors to identify the key determinant of the adoption of the internet for sales and
marketing purposes in small, owner-managed travel firms. It examines the firm
characteristics which are associated with adoption behaviour such as strategy and
resources, as well as external factors such as culture and the digital divide. In
addition to external and firm factors, personal factors such as ownership and
leadership are explored at various stages of adoption.

A predominantly qualitative methodology was used to interview travel agencies in
the context of Jamaica. All firms which have similar characteristics in terms of
ownership and management structure, in particular where owners are themselves
the managers and provide leadership for the organization, were interviewed. The
owner-managers of these firms were interviewed to gather deep perspectives from
local industry experts on industry challenges, current technology involvement and
future directions. Exploratory descriptive quantitative methods were used to
analyze firm characteristics and their relationships to internet adoption for sales
and marketing as well as the intention to use these technologies in firms, while a
deeper exploration into owner-managers was achieved through qualitative
enquiry. A pilot study and 2 phases of data collection were carried out. The
findings indicate that the leadership role is more significant than has been
previously posited.

The contribution to knowledge is new in that it takes a unique approach to an
understanding of technology adoption in firms by creating a comprehensive
conceptual framework for adoption based on previous research and then creates a
model that shows the factors and variables that drive adoption at each stage of the
adoption process from a personal leadership perspective as well as the
organizational perspective. Ultimately it is hoped that this focus on each stage of
adoption will provide insights into firm adoption behaviour as a consequence of
leadership characteristics.

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TABLE OF CONTENTS
TITLE PAGE
Title Page 1
Copyright 2
Abstract 3
Table of Contents 4
List of Tables 12
List of Figures 13
Acknowledgements 14
Dedication 16

Chapter 1: Introduction 17
1.1 Introduction 18
1.2 Industry Challenges and the External Environment 23
1.3 Theoretical context 24
1.3.1 The Internet Explosion 26
1.4 The Research Context 26
1.4.1 The Economic Context 27
1.4.2 The Social Context 28
1.4.3 Technological Context 29
1.4.4 The Travel Context 30
1.5 The Aim and Consequent Objectives 33
1.6 The Structure of the Thesis 34

Chapter 2: Literature Review 37
2.1 Introduction 38
2.2 Firm Strategy 40
2.2.1 Competitiveness Strategy 41
2.2.2 Distribution Strategies 43
2.2.2.1 Distribution and Channel Strategy 43
2.2.2.2 Distribution Strategy and Resources 44
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2.2.2.3 Distribution and the Supply Chain 45
2.2.2.4 Distribution and Market Presence 47
2.2.2.5 Distribution Strategies for Tourism 48
2.2.3 Procurement Strategies 50
2.2.3.1 Relational Competence and Asset Specificity 50
2.2.3.2 Procurement and Strategic Alliances 51
2.2.3.3 The Procurement Revolution 52
2.2.4 Strategy and ICT 53
2.3 Organizational Decision Making (Over-arching Theories) 55
2.3.1 Micro and Macro Decision-Making Models 55
2.4 Technology Diffusion and Adoption 60
2.4.1 Diffusion of Innovation 60
2.4.1.1 Innovation 61
2.4.1.2 Communication 62
2.4.1.3 Social System 63
2.4.2 Innovation Diffusion and Leadership 63
2.4.3 Adoption Perspectives 64
2.4.4 The Process of Adoption 66
2.4.5 Diffusion and Adoption Levels 67
2.4.6 Technology Acceptance Model 68
2.4.6.1 Personal Influences 69
2.4.6.2 Situational Influences 71
2.4.7 E-commerce and Technology Adoption 73
2.4.8 The Post-Internet Phase 75
2.4.8.1 Internet Transformation 76
2.4.8.2 Disintermediation 76
2.4.8.3 Reintermediation 78
2.5 Digital Divide 79
2.5.1 Digital Divide Approaches 79
2.5.2 Evolution in Digital Divide Theory 81
2.5.3 Access, Content and Learning Divides 82
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2.5.4.4 Ethical v. Economic Perspectives 83
2.6 Culture 85
2.6.1 National Culture influence on Individuals 85
and Organizations
2.6.2 Cultural Differences and Organizations 86
2.6.3 Culture and Innovation 88
2.6.4 National Culture and Leadership 89
2.7 Firm Ownership and Leadership 90
2.7.1. Firm Ownership 90
2.7.1.1 Entrepreneurship 91
2.7.1.2 Owner-Managed Firms 92
2.7.1.3 Managerial Decision-Making for Entrepreneurs 93
2.7.1.4 Ownership and Firm Performance 94
2.7.2 Firm Leadership 95
2.7.2.1Transformational versus Transactional Leadership 96
2.7.2.2 Concepts and Issues in Leadership Studies 97
2.7.2.3 Transformational Leadership 100
and Organizational Context
2.7.2.4 Leadership, Resources and Innovation 101
2.8 Resource-based View of the Firm (RBV) 101
2.8.1 Resources and Classical Theories 102
2.8.2 Resources and Competitiveness 104
2.8.3 Resources and Firm Performance 104
2.8.4 Resources and Diversification 105
2.8.5 Resources and Collaboration 105
2.8.6 Resources and Firm Strategy 106
2.9 The Research Gaps (Emergent Conceptual 107
Frameworks)

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Chapter 3: Methodology 113
3.1 Research Perspective 114
3.2 Epistemological Position 115
3.3 Ontological Position 117
3.4 Conceptualization and Operationalization 118
3.4.1 Quantitative and Qualitative Approaches 118
3.4.2 The Qualitative Measurement Process 119
3.4.3 Reliability and Validity 120
3.5 Methodological Limitations 121
3.6 Research Design 122
3.7 The Primary Research Process 124
3.7.1. Phase 1 Data Collection 124
3.7.1.1 The Phase 1 Interview Instrument 125
3.7.1.2 Data Collection- Phase 1 131
3.7.1.3 Phase 1 Data Analysis 132
3.7.1.4 Findings and Gaps- Phase 1 136
3.7.2 Phase 2 Data Collection 136
3.7.2.1 The Phase 2 Instrument 137
3.7.2.2 Data Collection and Analysis- Phase 2 139
3.7.2.3 Phase 2 Data Analysis 139
3.7.2.4 Case Study Analysis 141
3.7.2.5 Findings and Gaps- Phase 2 141
3.8 Limitations 142

Chapter 4: Research Findings: Internal Firm Factors 143
4.1 Research Findings Introduction 144
4.2 Firm Characteristics 145
4.3 Case Studies 153
4.4 Firm Strategy 156
4.4.1 Competitive Strategy 156
4.4.2 Distribution Strategy 160
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4.4.3 Procurement Strategy 162
4.5 Leadership and Strategy Formulation 164
4.6 Resources 167
4.6.1 Resources and Competitiveness 167
4.6.2 Resources and Firm Performance 170
4.6.3 Resources and Diversification 171
4.6.4 Resources and Collaboration 172
4.6.5 Resources and Firm Strategy 173
4.6.6 Resources and Competencies 175
4.6.7 Human Resources 178
4.6.8 Financial Resources 180
4.7 Leadership, Firm Strategy and Resources 181
4.8 Chapter Summary 182

Chapter 5: Research Findings: External Firm Factors 184
5.1 Introduction 185
5.2 Culture Differences 185
5.2.1 National Culture and Organizational Behaviour 186
5.2.1.1 Values 187
5.2.1.2 Norms and Traditions 188
5.2.1.3 Social Interaction 189
5.2.2 Culture and Innovation 191
5.2.3 The family as a Sub-culture 192
5.3 Culture and Leadership 193
5.4 Culture, Customers and the Competition 194
5.5. Cultural Conceptualization in Technology 195
Adoption Discourse
5.6 The Digital Divide 196
5.6.1 The Access Divide and the Firm 197
5.6.2 The Content Divide, Learning Divide and the Firm 199
5.6.3 The Digital Divide and Industry 200
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5.6.4 Digital Divide in the Travel and Tourism Context 200
5.6.5 Digital Divide and Small Owner-Managed Firms 202
5.7 Chapter Summary 203

Chapter 6: Research Findings: The Leadership Imperative 208
6.1 Introduction 209
6.2 Leadership Background 211
6.2.1 Risk-taking and the Owner-Manager 218
6.3 Transactional versus Transformational Leadership 223
6.3.1 Idealized Influence 224
6.3.2 Inspirational Motivation 227
6.3.3 Individualized Consideration 230
6.3.4 Intellectual Stimulation 235
6.3.5 Agile Strategies 237
6.4 Leadership and Strategy 240
6.5 Leadership and Resource Allocation 242
6.6 Leadership Characteristics for Technology 244
Adoption (Owner-Managed, Small Firms)
6.6.1 Education 246
6.6.2 Previous Work Experience 247
6.6.3 Technology Experience 248
6.6.4 Risk Aversion 250
6.6.5 Family Composition 251
6.6.6 Intellectually Stimulating Traits 252
6.7 Leadership Typologies for Technology Adoption 254
6.8 Chapter Summary 255

Chapter 7: Concept and Model Development 257
7.1 Introduction 258
7.2 Theory and Concepts 260
7.2.1 Theory Development and the Post-Internet Phase 261
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7.2.2 Technology Adoption Drivers 262
7.3 Adoption Stages 264
7.3.1 The Adopters 266
7.4 Contribution to Theories of Staged Technology Adoption 269
7.4.1 Development of the Model 270
7.4.1.1 Resistors 271
7.4.1.2 Caretakers 273
7.4.1.3 Stabilizers 275
7.4.1.4 Reactors 277
7.4.1.5 Transformers 279
7.5 Strengths of the Model 283
7.5.1 Practical Implications of the Model 287
7.5.2 Limitations of the Model 288
7.6 Originality and Contribution 289

Chapter 8: Conclusions and Implications 291
8.1 Introduction 292
8.2 Meeting the Objectives 292
8.2.1 To examine the combination of 294
antecedents and drivers for various levels
of technology adoption in travel firms.

8.2.2 To investigate the relationship 297
between Ownership/Leadership and technology
adoption in owner-managed small firms.

8.2.3 To investigate the influence of internal firm 300
factors such as strategy and resources in technology
adoption in owner-managed small firms.

8.2.4 To investigate external firm factors such as 302
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