Determinants affecting organizations' intent to adopt e-tailing: a study based on innovation theories

Abstract

Online retailing (e-tailing), which is believed as a major technological innovation has aroused significant attention both in literature and business. Nevertheless, while there are abundant adoption studies from consumer perspectives, few studies provide concrete analysis of organizational views. To study organizations' behavior of the e-tailing adoption, the well-known innovation theories (e.g. [1], [2].) provide a valuable base for investigation. However, the major problematic issue in previous innovation theories is the inconsistent findings across studies. A determinant found significantly to an innovation adoption in one study can be insignificant in another study regarding the same innovation typology. It is suggested that more insights in research design be added to the theories before they are employed.The objective of this study is to provide a critical review in order to summarize and explain those inconsistent finding; and to propose a framework with new theoretical relationships to investigate the determinants affecting firms' intent of "e-tailing" adoption. It is indicated that the past inconsistent findings can be caused by mismatch between specificity and generality within a study; and inattention to some interactive relationships among the identified determinants [3]. With respect to the issues, a theoretical framework is proposed to test the new relationships among the four determinants namely 1) Perceived Characteristics of Innovation (PCI), 2) Characteristic of Environment, 3) Characteristic of Organization and 4) Characteristic of Top Management. Hierarchical Regression Analysis is used to test the model with variables entered into the regression equation by the assigned steps.It is expected that a firm who perceives better of e-tailing i.e. relative advantage and compatibility will have better attitude toward its adoption and have higher adoption intention. Besides these, higher competitive pressure, lower channel pressure, bigger firm size, more available IT infrastructure and innovative top management are expected to positively correlate with the intention. However, the real co-relational strengths of those relationships should be moderated by the firm's attitude toward the adoption. For example, competitive pressure is likely to make a firm more innovative in overall; however, whether a company is really willing to adopt a particular innovation would be affected by its attitude toward that innovation. Positive (negative) attitude can increase (decrease) the intention. This moderating effect, which has not addressed by past innovation theories, can explain the inconsistent findings.Figuring out what determinants affect the adoption of e-tailing among organizations provides significant implications. It is useful for managers to evaluate those internal and external factors of their firms. It helps managers position their firms for the decision of online marketing.