A Mediated–Moderated Model for Innovation Attributes and E-Commerce Adoption of SMEs

Authors

  • Saleh Obaid Alenezi Kuwait Technical College
  • Salmi Mohd Isa Universiti Sains Malaysia

DOI:

https://doi.org/10.7903/ijecs.2139

Keywords:

Attributes of innovation, attitude, organizational resource readiness, innovativeness, adoption of E-commerce Kuwait.

Abstract

Understanding how innovative attributes influence adoption decisions is still a hot topic in the innovation management literature, prompting a call for more research. This study intends to evaluate a constructed conceptual model that depicts the relationship between the three aspects of innovation and E-commerce adoption as mediated by attitude and organizational resource readiness, based on theories of innovation and behaviour. The moderating influence of innovativeness in the link between attitude and organizational resource readiness and E-commerce adoption is also investigated in this study. The findings are based on data from 259 Kuwaiti SME owners and managers. The mediation of attitude and organizational resource readiness was investigated using a bootstrapping method based on the PLS-SEM technique. The findings show that attributes of innovation can improve attitude and organizational resource readiness. Furthermore, the relationship between the three independent constructs, namely relative advantages, compatibility, complexity, and E-commerce adoption, is mediated by attitude and organizational resource readiness. Meanwhile, the association between attitudes, organizational resource readiness, and E-commerce adoption is strongly moderated by innovativeness. The findings of this study provided insights into the causal mechanisms behind the relationships between attributes of innovation and E-commerce adoption that could not be acquired using a single theory-driven model.

References

M. Peris-Ortiz, D. Benito-Osorio, and C. Rueda-Armengot, , "Positioning in online social networks through QDQ media: an opportunity for Spanish SMEs," In: Gil-Pechuán, I., Palacios-Marqués, D., Peris-Ortiz, M., Vendrell, E., Ferri-Ramirez, C. (eds.) Strategies in E-Business. Springer, Boston, 2014.

A. AlBar and M. Hoque, "Factors affecting the adoption of information and communication technology in small and medium enterprises: a perspective from rural Saudi Arabia, " Information Technology for Development vol. 25, no.2, pp. 1-24, 2017.

C. Gutiérrez-Leefmans, and R. M. Nava-Rogel, "Mercadotecnia digital y las pequeñas y medianas empresas: revisión de la literatura," Enl@ce: Revista Venezolana de Información, Tecnología y Conocimiento, vol. 13, no. 1, pp. 45-61, 2016.

G. B. Verdugo, "Barriers to the adoption of the internet and selection of e-commerce actions: incidental motivations of micro-entrepreneurs," Business: Theory and Practice, vol. 20, pp. 303-316, 2019.

E. E. Grandón, and P. Ramírez-Correa, "Managers/owners’ innovativeness and electronic commerce acceptance in Chilean SMEs: A multi-group analysis based on a structural equation model," J. Theor. Appl. Electron. Commer. Res., Vol. 3, no.3, pp.1-16, 2018.

C. E. Ocloo, H. Xuhua, S. Akaba, J. Shi, and D. K. Worwui-Brown, "The Determinant Factors of Business to Business (B2B) E-Commerce Adoption in Small- and Medium-Sized Manufacturing Enterprises," Journal of Global Information Technology Management, pp. 1–26, 2020.

F. D. Davis, "Perceived usefulness, perceived ease of use, and user acceptance of information technology, " MIS Quarterly, vol., 13, no.3, pp. 319-340, 1989.

E. M. Rogers, "Diffusion of Innovations, " Free Press, New York, 1983.

G. Vagnani, and L. Volpe, " Innovation attributes and managers’ decisions about the adoption of innovations in organizations: a meta-analytical review," International Journal of Innovation Studies, vol.1, no.2, pp. 107-133.

L. G. Tornatzky, and K. J. Klein, "Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings," In: IEEE Transactions on Engineering Management EM, vol. 29, no.1, pp. 28–45, 1982.

I. A. Zolkepli, and Y. Kamarulzaman, Social media adoption: The role of media needs and innovation characteristics. Computers in Human Behavior, vol. 43, pp. 189–209, 2015.

G. Vagnani, C. Gatti, and L. Proietti, "A conceptual framework of the adoption of innovations in organizations: A meta-analytical review of the literature," The Journal of Management and Governance , vol. 23, no.4, pp. 1023-1062, 2019.

F. K. Weigel, B. T. Hazen, C. G. Cegielski, and D. J. Hall, "Diffusion of Innovations and the Theory of Planned Behavior in Information Systems Research: A Metaanalysis," Communications of the Association for Information Systems, vol.34, 2014.

I. Ajzen, "The Theory of Planned Behavior. Organization Behavior and Human Decision Processes, " Academic Press, Inc. pp.179-211, 1991.

M. Hubert, M. Blut, C. Brock, R.W. Zhang, V. Koch, and R. Riedl, "The influence of acceptance and adoption drivers on smart home-usage," European Journal of Marketing, vol., 53, no.6, pp. 1073-1098, 2019.

D. Y. Govinnage, and K. M. V. Sachitra, "Factors Affecting E-commerce Adoption of Small and Medium Enterprises in Sri Lanka: Evidence from Retail Sector," Asian Journal of Advanced Research and Reports, pp. 1-10, 2019.

H. Hamad, I. Elbeltagi, and H. El-Gohary, "An empirical investigation of business-to-business e-commerce adoption and its impact on SMEs competitive advantage: The case of Egyptian manufacturing SMEs, " Strategic Change, vol. 27, no. 3, pp. 209–229, 2018.

L. E. Huy, F. Van Rowe, and D. Truex, "An empirical Study of Determinants of E-commerce Adoption in SMEs in Vietnam: an economy in transition," Journal of Global Information Management (JGIM), vol. 20, no.3 July-Sep, 2012.

S. Kurnia, J. Cho, R. M., Mahbubur, and B. Alzougool," E-commerce technology adoption: A Malaysian grocery SME retail sector study," Journal of Business Research, vol.68, no.9, pp.1906–1918, 2015.

D. M. Wanyoike, E. Mukulu, and A. G. Waititu, "ICT Attributes as Determinants of Internet Social Adoption by Formal Small Enterprises in Urban Kenya," International Journal of Arts and Commerce, vol.1, no.7, pp.65–75, 2012.

D. K. Maduku, M. Mpinganjira, and H. Duh, "Understanding mobile marketing adoption intention by South African SMEs: A multiperspective framework," International Journal of Information Management, vol.36, no.5, pp.711–723, 2016.

M. Mohtaramzadeh, T. Ramayah, and C. Jun-Hwa, "B2B e-commerce adoption in Iranian manufacturing companies: Analyzing the moderating role of organizational culture," International Journal of Human-Computer Interaction, vol. 34, no., pp.621–639.

A. Alsaad, R. Mohamad, and N. A. Ismail, "The moderating role of trust in business to business electronic commerce (B2B EC) adoption," Computers in Human Behavior, vol. 68, pp. 157–169, 2017.

J. H. Walker, K. Saffu, and M. Mazurek, "An Empirical Study of Factors Influencing E-Commerce Adoption/Non-Adoption in Slovakian SMEs," Journal of Internet Commerce, vol.15, no.3, pp. 189-213, 2016.

M. Talukder, H. Harris, and G. Mapunda, "Adoption of innovations by individuals within organizations: An Australian study,"Asia Pacific Management Review, vol.13, no.2, pp. 463-480, 2008.

I. M. Al-Jabri, and N. Roztocki, "Adoption of ERP systems: does information transparency matter? " Telematics and Informatics, vol. 32, no. 2, pp.300–310,2014.

S. Rehman, R. Mohamed, and H. Ayoup, "The mediating role of organizational capabilities between organizational performance and its determinants, " Journal of Global Entrepreneurship Research, vol.9, no.30, 2019.

M. L. To, and E. W. T. Ngai, "The role of managerial attitudes in the adoption of technological innovations: An application to B2C e-commerce," International Journal of Enterprise Information Systems, vol.3, no.2, pp. 23–33, 2008.

S. Z. Ahmad, A. R. Abu Bakar, T. M. Faziharudean, and K. A. Mohamad Zaki, "An empirical study of factors affecting e-commerce adoption among small-and medium-sized enterprises in a developing country: Evidence from Malaysia," Information Technology for Development, vol.21, no.4, pp. 555-572, 2015.

U. O. Ekong, P. Ifinedo, C. K. Ayo, and A. Ifinedo, "E-Commerce Adoption in Nigerian Businesses," Small and Medium Enterprises, (January), pp.840–861, 2012.

J. A. L. Yeap, T. Ramayah, and P. Soto-Acosta, "Factors propelling the adoption of m-learning among students in higher education," Electronic Markets, vol.26, no.4, pp.323–338, 2016.

Z. Hong-hong, and Z. Mei-hua, "Empirical Study of Perceived Innovation Attributes and Innovative Adoption Intention: A Mediating Effect of Attitude," International Conference on E-Business and E-Government, 2010.

J. Kim and S. Forsythe, "Sensory enabling technology acceptance model (SE-TAM): A multiple-group structural model comparison, " Psyshology Marketing, vol.25, no.9, pp.901-922.

M. Latip, I. Sharkawi, and M. Mohamed, "The impact of innovation attributes and the mediating effect of environmental attitudes towards environmental management practices among SMEs, " International Social Science Journal, vol. 71, no.4 pp. 91-108, 2021.

Y. Wang, L. Jin, and H. Mao, "Farmer Cooperatives’ Intention to Adopt Agricultural Information Technology—Mediating Effects of Attitude," Inf Syst Front, vol.21, pp. 565–580, 2019.

T. S. Teo, and M. Tan, "An empirical study of adoptors and non-adopters of the Internet in Singapore, " Information & Management, vol.34, no.6, pp. 339-345,1998.

R. Rahayu, and J. Day, "Determinant Factors of E-commerce Adoption by SMEs in Developing Country: Evidence from Indonesia," Procedia - Social and Behavioral Sciences, vol.195, pp. 142 – 150, 2015.

J. Tidd, and J. Bessant, "Managing Innovation: Integrating technological, market and organizational change," English. 4th ed. John Wiley. ISBN: 0470998105, 2009.

E. M. Rogers, "Diffusion of innovations," eng. 5th. New York, NY [u.a.]: Free Press, p. 576. ISBN: 0-7432-2209-1, 978-0-7432-2209-9, 2003.

A. Asiaei and N. Z. Rahim, "A multifaceted framework for adoption of cloud computing in Malaysian SMEs," Journal of Science and Technology Policy Management, vol.10, no.3, pp.708–750.

A. Marcati, G. Guido, and A.M. Peluso, "The role of SME entrepreneurs’ innovativeness and personality in the adoption of innovations," Research Policy, Vol. 37 No. 9, pp. 1579-1590, 2008.

J. Kim and S. Forsythe, "Adoption of virtual try-on technology for online apparel shopping, " Journal of Interactive Marketing, vol.22, no.2, pp.45-59, 2008.

S. P. John, "The integration of information technology in higher education: A study of faculty’s attitude toward IT adoption in the teaching process, " Contaduriay Administracion, 60, 230–252, 2015.

Y. Li, Z. T. Fu, and Li, H, "Evaluating factors affecting the adoption of mobile commerce in agriculture: An empirical study," New Zealand Journal of Agricultural Research, vol.50, no.5, pp. 1213–1218. 2007.

H. Boateng, A. F. Okoe, and A. B. Omane, "Does personal innovativeness moderate the effect of irritation on consumers’ attitudes toward mobile advertising? " Journal of Direct, Data and Digital Marketing Practice, vol.17, no.3, 201–210. 2016.

M. Ghobakhloo, and S. H. Tang, "The role of owner/manager in adoption of electronic commerce in small businesses: The case of developing countries," Journal of Small Business and Enterprise Developmen, vol. 20, 2013.

D. Lestari, "Measuring e-commerce adoption behaviour among gen-Z in Jakarta , Indonesia, " Economic Analysis and Policy, vol. 64, pp.103–115, 2019.

World Bank brief, "Small and Medium Enterprises (SMEs) Finance," Retrieved from http://www.worldbank.org/en/results/2013/04/05/msme-finance-expanding-opportunities-and-creating-jobs, 2015.

J. F. Hair, J. J. Risher, M. Sarstedt, and C.M. Ringle, "When to use and how to report the results of PLS-SEM, " European Business Review, vol. 31 no. 1, pp. 2-24, 2019.

P. Ifinedo, "An empirical analysis of factors influencing Internet/e-business technologies adoption by SMEs in Canada, " International Journal of Information Technology & Decision Making, vol.10, no.4, pp.731–766, 2011.

R. Voola, G. Casimir, J. Carlson, and M. Anushree Agnihotri, "The effects of market orientation, technological opportunism, and e-business adoption on performance: A moderated mediation analysis, " Australasian Marketing Journal (AMJ), vol.20, pp.136-146.

C. M. Ringle, S. Wende, and J. M. Becker, "SmartPLS 3. Boenningstedt: SmartPLS GmbH, " http://www.smartpls.com, 2015.

G. Cepeda-Carrion, J.-G. Cegarra-Navarro, and V. Cillo, "Tips to use partial least squares structural equation modelling (PLS-SEM) in knowledge management, " Journal of Knowledge Management, 2019.

G. Fassott, J. Henseler, and P. S. Coelho, "Models with composite variables, "Testing moderating effects in PLS path, " Industrial Management & Data Systems, vol.116, no.9, 1887-1900, 2016.

J. Hair, C.L. Hollingsworth, A.B. Randolph, and A.Y. L. Chong, "An updated and expanded assessment of PLS-SEM in information systems research, " Industrial Management & Data Systems, vol.117, no.3, pp. 442–458, 2017.

V. Vinzi, W.W. Chin, J. Henseler, and H. Wang, "Handbook of Partial Least Squares, " Springer-Verlag Berlin Heidelberg, vol. XIV, pp. 798, 2010.

A. F. Hayes, "Introduction to mediation, moderation, and conditional process analysis: A regression-based approach, " Guilford Press.

J. Henseler, C. M. Ringle, and M. Sarstedt, "A new criterion for assessing discriminant validity in variance-based structural equation modeling, " Journal of the Academy of Marketing Science, vol. 43, no.1, pp.115-135, 2015.

J. Cohen, "Statistical power analysis for the behavioral sciences," (2nd ed.), Mahwah: Lawrence Erlbaum Associates, 1998.

M. A. Memon, J.-H. Cheah, T. Ramayah, H. Ting, and F. & Chuah, "Mediation Analysis: Issues and Recommendations", Journal of Applied Structural Equation Modeling, vol.2, no.1, pp. i-ix, 2018.

Downloads

Published

2022-09-15

Issue

Section

Regular Articles