A firm's post-adoption behavior: loyalty or switching costs?

Abstract

Purpose– This study aims to investigate the influences of loyalty and switching costs toward a firm's overall post-adoption behavior in using information system.Design/methodology/approach– A research model is developed around two constructs found in the literature – loyalty and switching costs – that are most critical in firms' decisions on continued use of the same IS service providing company. It is empirically tested using a survey of IT decision makers in total 102 companies in South Korea. Partial least squares method is used to assess the relationships specified in research model.Findings– The findings suggest that both loyalty and switching costs have positive influences on the continuous intention to use and the inattentiveness of alternatives.Research limitations/implications– Findings are based on a single point cross-sectional survey. To further investigate the continuance of specific IT service firms, triangulation will be necessary with longitudinal and qualitative data concerning the process of decision-making, including political and contractual situation.Originality/value– The study fills the research gap in studying post-adoption behavior at the firm level by empirically testing the duality of loyalty and switching costs.