Purpose: This quantitative dissertation aimed 1) to investigate the impact of government policies, product innovation attributes, consumer innovativeness, and perceived value towards purchase intention,2) to construct a linear structural equation model that illustrates the influence of those factors on the purchase intention of innovative solar power airconditioning system of SMEs in the service sector. Method: The sample group was 320 executives of SMEs in the service sector. Sampling was by specific and quota random sampling. Data were collected by a structured questionnaire and analyzed by descriptive statistics, confirmatory component analysis, and structural equation model analysis. Results: The findings of this study demonstrate significant direct effects of government policy, consumer innovativeness, and consumer’s perceived value on purchase intention of innovative solar power air conditioning systems. Moreover, government policy and consumer innovativeness also exerted indirect effects on purchase intention through their influence on consumers’ perceived value, serving as mediator variables. Research Implication: Through the development of a structural equation model, consumer innovativeness had the greatest overall influence on the purchase intention of SMEs in the service sector, followed by consumer’s perceived value, government policy, and product innovation attributes, respectively. Originailty/Value: Airconditioning SMEs can used government policy, consumer innovativeness, and consumer’s perceived value to motivate consumers on purchase intention of innovative solar power air conditioning systems.
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