IOIS Adoption and Diffusion Research

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Most researchers (Cavaye & Cragg, 1995; Reich & Benbasat, 1990; Rogers, 1995) agree that technology adoption occurs in stages. A number of stages have been proposed, with adoption and diffusion the most common (Rogers, 1995).

Technology adoption is characterized by actions related to learning about an innovation. These include collecting information, building knowledge, examining relevance and evaluating appropriateness. Technology adoption culminates in an innovation adoption decision. Rogers (1995) distinguished between technology adoption and diffusion stating that it is possible for an organization to adopt an innovation and not use it.

Technology diffusion involves an innovation’s implementation and use spreading over time. Technology diffusion studies focus on why and how an innovation’s use spreads and innovation characteristics lead to widespread acceptance. Many diffusion studies have use as the dependent variable. As such, in the review of these studies, we specifically cite “use” as the dependent variable rather than diffusion.

Table 2 categorizes IOIS research focusing on technology adoption and technology diffusion. We organize the table alphabetically by adoption/diffusion phenomenon. Studies focusing on B2B EC appear first, followed by EDI and then other IOISs. We include the power of the independent variables in parentheses in the significant independent variables column. Only Grover’s work in 1993 reported this information.

Table 2: Facilitators of IOIS technology adoption and diffusion

Authors

Facilitators of Adoption and Diffusion (Significant Independent Variables)

Adoption/ Diffusion Phenomenon (Dependent Variable)

Research Method

Data Source

Theoretical Base

Deeter-Schmelz, Bizzari, Graham, & Howdyshell (2001)

Supplier support and communication convenience

B2B EC adoption

Survey

222 members of the National Association of Purchasing Managers

Innovation diffusion theory

Ranganathan, Teo, Dhaliwal, Ang, & Hyde (2001)

Top management support, organizational change, strategy-related, project management, valuation, internal information technology, external information technology, collaboration, and external business environment

B2B EC deployment

Survey

100 firms in Singapore

Innovation diffusion theory

Case study

Information technology executives

Hope, Hermanek, Schlemmer, & Huff(2001)

Clear e-business vision, customer readiness and technological awareness, top management support, creative managerial thinking, information sharing and open communication, system marketing and promotion, staff skilled in technical and business issues, appropriate timing of project startup, clear and certain legislative and policy environment, current technology, and external expertise

B2B EC diffusion

Case study

5 medium-sized companies in the transportation and logistics industry of New Zealand

None

Han & Noh (1999–2000)

System stability and data security

B2B EC use

Survey

325 people with EC experience

None

Tabor (2001)

Customer-focused approach, easy-to-use technology, leadership, consistent goals and strategy, culture supporting innovation, relative advantage, product equity/trust, innovative characteristics, management commitment, team composition, core competence, project management, and technology performance

B2B EC use

Case study

A major U.S. airline

None

Premkumar, Ramamurthy, & Nilakanta (1994)

Relative advantage, technical compatibility, cost, and duration

EDI adaptation, internal diffusion, and external diffusion

Survey

Information systems and sales/ purchasing executives from 201 firms

Innovation diffusion theory

Bouchard (1993)

Key business partner implementation and key business partner mandating organization’s implementation

EDI adoption

Survey

75 retail suppliers

Innovation diffusion theory and critical mass theory

Case study

2 retail suppliers

Computer- supported interviews

10 retail suppliers

Hart & Saunders (1997)

Power

EDI adoption

Theoretical framework and case study

1 retail firm

Power

Premkumar et al. (1997)

Firm size, top management support, competitive pressure, and customer support

EDI adoption

Survey

181 firms in the trucking industry

Innovation diffusion theory and resource dependency theory

Saunders & Clark (1992)

Cost

EDI adoption

Survey

192 vendors

Power

Williams (1994)

Demand uncertainty, power, and relative advantage

EDI adoption

Interviews

Firms with and without channel power, consultants, EDI third-party providers

Organizational theory and power theory

Survey

156 from customers, suppliers, shippers, and carriers, who are members of the Council of Logistics Management

Premkumar & Ramamurthy (1995)

Internal need, top management support, competitive pressure, and exercised power

EDI adoption decision modes (proactive vs. reactive)

Survey

Information systems and sales/ purchasing executives from 201 firms

Power and social exchange theory

Teo, Tan, & Wei (1995)

Complexity, operational risk, strategic risk, and observability

EDI adoption intention

Survey

112 senior managers of firms listed in the Singapore stock exchange

Innovation diffusion theory

Chwelos et al. (2001)

External pressure, perceived benefits, and readiness

EDI adoption intentions

Survey

268 small to medium organizations in the Purchasing Managers Association of Canada

Critical mass theory, innovation diffusion theory, and power

Iacovou, Benbasat, & Dexter (1995)

Perceived benefits and external pressure

EDI adoption of small organizations

Case study

7 managers of small organizations

Innovation diffusion theory and resource dependency theory

O'Callaghan, Kaufmann, & Konsynski (1992)

Perceived relative advantage

EDI computer-based interface offerings, adoption decision

Field interviews

10 members of the Independent Insurance Agents of America

Innovation diffusion theory

Focus group

1 member of the Independent Insurance Agents of America

Surveys

1242 members of the Independent Insurance Agents of America

Damsgaard & Lyytinen (1998)

Inter-organizational collaboration, herd effect, environment favoring cooperation, trade organization support, and infrastructure

EDI diffusion

Field study

9 organizations from 3 industries in Finland

Institutional theory and innovation diffusion theory

Cox & Ghoneim (1996)

Coherent strategy, top management support, meeting needs, review and continuous improvement, and integration into core business activities

EDI implementation and EDI integration benefits and barriers

Survey

85 organizations from a variety of industries

None

Case study

1

Premkumar & Ramamurthy (1995)

Proactive adoption

EDI implementation outcomes and effect of decision modes (proactive vs. reactive)

Survey

Information systems and sales/ purchasing executives from 201 firms

Power and social exchange theory

Crook & Kumar (1998)

Organizational context (organizational size, information technology capability, senior management commitment), environmental context (industry experience with EDI, nature of suppliers, nature of customers), external pressure, system benefits, and implementation support

EDI use

Case study using grounded theory

4 organizations in four different industries

None

Hart & Saunders (1997)

Trust

EDI use

Theoretical framework and case study

1 retail firm

Power

Grewal, Corner, & Mehta (2001)

Emphasizing efficiency motivations, deemphasizing legitimacy motivations, and information technology capabilities

Electronic market use

Survey

306 participants in the Polygon marketplace

Institutional theory, transaction cost theory, and motivationability-framework

Cavaye & Cragg (1995)

Champion existence, extension of existing systems, experienced information systems staff, perceived customer need, user participation, low system cost, good marketing programs, and user technological awareness

Customer-oriented IOIS adoption

Case study

9 profit-oriented firms selling a product/service

Innovation None

Reich & Benbasat (1990)

Product champion, top management support, proactive information systems function, external pressure, customer involvement, marketing the system, and perceived need

Customer-oriented strategic system adoption

Case study

11 customer-oriented strategic systems, interviews with line and information systems management

None

Grover (1993)

Top management support (0.91), champion existence (0.69), compatibility (0.92), complexity (less)(-0.56), proactive role of information technology group (0.84), large size (0.67), existing information technology infrastructure (0.63), strategic information systems planning (0.47), and management risk-taking propensity (0.45)

Customer-based IOIS adoption

Survey

226 senior executives

None

Runge (1985, 1988)

Product champion, customer involvement in development process, marketing efforts, extension of existing information systems, and ignoring or circumventing normal information system planning and approval processes

Telecommunicatio n- based information system adoption

Case study

35 systems in Britain

None

Sabherwal & Vijayasarathy (1994)

Product information intensity, value chain information intensity, and environmental uncertainty

Telecommunicationuse between customers and suppliers

Survey

86 senior executives from medium-sized companies

None

Table 2 indicates that a number of theories underpin IOIS research, with innovation diffusion theory the most common. Rogers’ (1995) innovation diffusion theory applies to the study of adoption (decision to use) and diffusion (extent of implementation) of innovations within organizations by identifying innovation attributes influencing adoption. Innovation diffusion theory posits a user’s technology adoption decision as a rational choice based on perceived technological characteristics such as relative advantage, compatibility, trialability, observability and complexity.

Power theories also underpin IOIS studies. There are several notions on power. Emerson (1962) did some of the first work in power with social exchange theory. According to Emerson (1962), social exchange theory notes that “the dependence of actor X on actor Y is (a) directly proportional to X’s motivational investment in goals mediated by Y, and (b) inversely proportional to the availability of those goals to X outside the Y–X relationship” (p. 32). Thompson (1967) has a similar observation on power. Thompson (1967, p. 31) noted that an organization is dependent on some element of its task environment (a) in proportion to the organization’s need for resources or performances which that element can provide, and (b) in inverse proportion to the ability of other elements to provide the same resource or performance” (p. 31).

Another notion on power is resource dependency theory (Pfeffer, 1987; Pfeffer & Salancik, 1978). Resource dependency theory posits that an organization’s environment is unstable and organizations try to reduce vulnerabilities and increase power relative to their constituents in order to survive. The degree to which an organization is dependent upon external resources is determined by the resource’s importance, the organization’s discretion over it and whether alternatives exist. In applying this theory to technology adoption, resource dependency theory explains that inter-organizational relationships may not be based on efficiency. Rather, inter-organizational relationships may be formed to reduce environmental uncertainty and may be the result of having power and influence over dependent organizations.

Many IOIS studies cite the importance of achieving critical mass. Critical mass theory (Dybvig & Spatt, 1983; Granovetter, 1978, 1985; Markus, 1990; Oliver, Marwell, & Teixeira, 1985; Rohlfs, 1974) posits that some innovations require collaboration among potential adopters for any adopter to benefit. It further posits that if a network cannot obtain an installed base equal to the largest equilibrium network size, it will have to exit from the market if it cannot surpass critical mass and become self-sustaining. Critical mass theorists believe collective action participation is based on perceptions of what the group is doing. Participation decisions are influenced by who has participated, how many have participated and how much others have contributed.

A few IOIS studies mention institutional and organizational behavior theories. Institutional theory suggests that in efforts to survive, organizations strive to satisfy external stakeholders by adopting rules and practices that may not necessarily increase technical efficiency but increase legitimacy in external stakeholders’ eyes (DiMaggio & Powell, 1983; Meyer & Rowan, 1977). Organizational behavior theory (Thompson, 1967) suggests that organizational variables, such as size, influence technological innovation adoption. IOIS research studies find that a large firm size facilitates EDI adoption (Premkumar et al., 1997), EDI use (Crook & Kumar, 1998) and customer-based IOIS adoption (Grover, 1993).



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Inter-Organizational Information Systems in the Internet Age
Inter-Organizational Information Systems in the Internet Age
ISBN: 1591403189
EAN: 2147483647
Year: 2006
Pages: 148

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