Abstract

The information system literature has long emphasized the importance of employee acceptance of information technology for achieving strategic goal of the firm and organizational performance. Consequently, this study investigates the determinants of acceptance of information technology with the extension of diffusion of innovation theory (DOI) in organizational context. Results showed that compatibility, innovativeness, trust in technology, perceived gap in IT capabilities, employee self-efficacy, and perceived cost advantage explained R^2 79.4%% variance in achieving strategic goal of the firm. The effect size analysis showed that perceived gap in IT capabilities had substantial effect size. Similarly, substantial predictive relevance was found Q^2 58.1%, 15.7% when predicting firm strategic goals and organizational performance respectively.

Highlights

  • In this vibrant economy, the use of information technology is considered essential for organizational operations

  • This study extends the diffusion of innovation theory (DOI) with some other technology factors namely; trust in technology, perceived gap in IT technology and perceived services quality to investigate firm strategic goals and firm performance

  • The research model of this study extends the diffusion of innovation theory (DOI) in organizational context and revealed that compatibility, innovativeness, trust in technology, perceived gap in IT capabilities, employee self-efficacy, perceived service quality and perceived cost advantage explained R2 79.4%% variance in achieving strategic goal of the firm

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Summary

Introduction

The use of information technology is considered essential for organizational operations. In developing countries the use of information technology is complex and crucial (Omamo, Rodrigues, & Muliaro, 2020). The present study fills the gap in information system and human resource literature by developing and amalgamated model which combines employee psychological and technological factors in achieving strategic goal and performance of the firm. The diffusion of innovation theory (DOI) is extended with trust in technology, perceived gap in IT capabilities, employee self-efficacy, perceived service quality and perceived cost advantage in order to see the impact of these factors on achieving strategic goal of the firm. This study is the first that investigates the role of diffusion of innovation theory in achieving strategic goal of the firm and organizational performance

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