A modified innovation model for e-trading systems in South Korean businesses

Abstract

Purpose – The purpose of this paper is to explore the adoption, use, and performance of e-trade systems in South Korean businesses. Design/methodology/approach – The authors developed a modified Technology Acceptance Model extended through resourced-based view theory, to address the performance aspect, hitherto neglected in previous studies. Using the new model, 114 businesses were surveyed, measuring relationships between perceived usefulness, perceived ease of use, e-system usage, and business performance. Latent mean analysis was performed to examine the moderating effects of high and low e-trading system usage. Findings – Through latent mean analysis, the authors determined that the influence of variables varies depending on the level of e-trading system usage. In both the high and low usage groups, perceived convenience influenced reuse of e-trading systems and reuse also had effects on business performance. Research limitations/implications – The authors only examined Korean enterprises, so it would be useful to also examine the foreign counterparts in international e-trade transactions. Follow-up studies could examine how the dynamics of the sector change over time. Qualitative case study approaches could better understand the perspectives of firms in relation to management strategy formulation and decision making. Practical implications – The results provide important insight for managers and policymakers concerned with developing electronic trading system strategies, and e-trading system contexts. Originality/value – Although many studies have explored relationships among perceived advantages, such as usefulness and convenience and use and performance, none have investigated the relationship between usage and business performance targeting e-trading systems.