The Entrepreneurs Perception on Information Technology Innovation Adoption: An Empirical Analysis of the Role of Precipitating Events on Usage Behavior

Abstract

The Unified Theory of Acceptance and Use of Technology (UTAUT) is a fairly developed model. Like any model, however, it has limitations, mainly in its relationship between the intention and use behavior. This paper will attempt to explain the influence of external factors that potentially inhibit or facilitate the performance of a behavior, as well as effects of the propensity to act on determinants toward intention for action. Based on the UTAUT limitations, we added precipitating events to measure the effect of external factors (such as government policy, financial crisis, and new market) on IT innovation and adoption and examined the effect of the propensity to act as a moderator on the relationship between the determinants intention and usage behavior, and hypothesized that in the condition where propensity to act is high, taking action will be more predictable. The data used to test the hypotheses were collected from a varied spectrum of Malaysian industries and entrepreneurs (SMEs owners). A total of 1,000 businesses were identified and questionnaires were distributed in person by the authors, and 420 completed questionnaires were returned. The research model used structural equation modeling techniques, and the current study validated the UTAUT model in the entrepreneurship context while showing that performance expectancy, effort expectancy and social influence were all positive influences on behavior intention. Facilitating conditions and behavior intention are important variables for determining the origins of behavior for IT innovation. The results of the study confirmed the moderating effects of propensity to act and precipitating factors in the model. Results indicated that precipitating events can capture the influence of external factors on the behavioural intention to take action, improve the model, and fill the intention - behaviour gap. The current study shows the significant effect of life events on the behavioural intention to take action.