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This thesis is distributed under a CC ____________ license. ____________________________________________________ FACTORS IMPACTING ON TECHNOLOGY ACCEPTANCE FOR THE MICRO/SME ELECTRONICS RETAILER NEIL G. CONNON PhD 2007 Factors impacting on technology acceptance for the micro/SME electronics retailer Abstract Factors impacting on technology acceptance for the micro/SME electronics retailer The UK micro/SME (known here as SME) retail sector is very important to the economic well being of the country. Its ability to generate jobs as well as income makes it a key part of the drive towards economic growth, and as such it is supported by government through a variety of initiatives. One initiative in 2003 aimed to energise and invigorate practitioners into using internet based technologies more fully in their business practices. This supported the widely held belief that the internet can and does enhance and improve business efficiency. It also suggests that SMEs were not fully engaging with the technology and that the government felt that it was not at the desirable level. This thesis looks at the issues surrounding technology acceptance for the SME and in particular internet adoption in the retail sector. This work explains technology acceptance and the main determinants and moderators connected with this in an organisational setting providing the practitioner with insight into why some technologies are embraced and others underutilised, or not adopted at all. Previous academic work in this area has tended to focus on the larger organisation. This thesis uses the technology acceptance literature to explore the situation of the SME. Through qualitative and quantitative research the specifics of the SME situation relating to technology acceptance are explored with the determinants and moderators being evaluated and changes made where appropriate. The specific internet based technology of online procurement is used to measure levels of acceptance and the issues relating to it. The result is an adapted model that better reflects the technology acceptance situation of the SME retail organisation. In the model three of the original constructs remain, however the moderators have been changed to reflect the SME and the relationships the constructs have with the moderators are also developed. As a new addition to the field it can be seen from the developed model that the frequency of re-ordering is an important determinant not only of online procurement but technology acceptance in general. This work will benefit practitioners in SME retail and also the wider SME field when it comes to evaluating whether or not to accept a new technology and how this is best achieved. Table of Contents Chapter 1 Introduction 1.1 Introduction…………………………………………….......... 1 1.2 Justification of the 3 research………………………………..... 1.3 Objectives………………………………………………....… 5 1.4 Methodology……………………………………………........ 6 1.5 Limitations and key 7 assumptions………………………......... 1.6 Structure of the 7 thesis………………………………….......... 1.7 Chapter 8 summary.....……………………………………....... Chapter 2 Technology Impact on the Small to Medium Business in the UK 2.1.1 Introduction.................................................. 10 ............................ 2.1.2 Chapter 10 outline......................................................... ................ 2.1.3 Terms of reference and 10 definitions.......................................... 2.2 Defining the SME and evaluating its importance in the context of the 12 UK......................................................................... ................................. 2.2.1 Introduction.................................................. 12 ............................ 2.2.2 What is a UK 12 SME?........................................................... ...... 2.2.3 The importance of the 15 SME..................................................... 2.2.4 The retail 16 SME............................................................. ............ 2.2.5 Link to this 16 research....................................................... .......... 2.3 Technology development 17 background................................................... 2.3.1 Introduction.................................................. 17 ............................ 2.3.2 Background.................................................. 17 ............................ 2.3.3 Technology and the 18 SME........................................................ 2.3.4 Links to this 19 research....................................................... ........ 2.4 Internet development 19 background.......................................................... 2.4.1 Introduction.................................................. 19 ............................ 2.4.2 A brief history of the 20 internet.................................................. 2.4.3 The internet 22 today........................................................... ......... 2.4.4 Internet usage in 23 business....................................................... 2.4.5 Intranets and 25 extranets...................................................... ....... 2.4.6 A rationale for internet usage and competitive 25 advantage through IT usage........................................................... ........... 2.4.7 Competitive advantage and the decision making 27 process........ 2.4.8 The internet and the 31 consumer………...……………….......... 2.4.9 Links to this 32 research……….......……………………............ 2.5 Retail and the 32 internet……………………………………………........ 2.5.1 Introduction……………………………………………......… 33 2.5.2 The development of the internet in 33 retail................................. 2.5.3 Subsets of e- 34 retail………………………………………......... 2.5.4 Internet models used in 37 retail……………………………....... 2.5.5 Categories of online 38 retailers……………............................... 2.5.6 Levels of uptake…………………………………….......…… 39 2.5.7 Factors relating to 40 uptake…………………………….....…… 2.5.8 Projections for future 42 uptake………………….....…............... 2.5.9 Links to this 44 research…………………………...……............ 2.6 Retail and the internet, 44 b2c………………………………………....… 2.6.1 Introduction………………………………………………...... 44 2.6.2 Customer 44 information……………………………….............. 2.6.3 Relationship 47 marketing…………………………………........ 2.6.4 A new retail channel……………………………………....… 48 2.6.5 Mobile……………………………………………….............. 50 2.6.6 Links to this 50 research……………………............................... 2.7 Retail and the internet, 51 b2b……………………………………....…… 2.7.1 Introduction………………………………………….....……. 51 2.7.2 Background………………………………………….....……. 51 2.7.3 Supply chain 54 management………..………………….....…… 2.7.4 Identifying supply 56 chains/networks…….…………................ 2.7.5 e-Procurement………………………………………….....…. 59 2.7.6 Virtual markets…………………………………....………… 60 2.7.7 A rationale for process 61 migration…………………....……… 2.7.8 Impact on the supply 63 chain………………………….....……. 2.7.9 Stock 64 control………………………………………................ 2.7.1 Links to this 64 0 research……………………………………....... 2.8 The Retail SME and the 64 internet…………………………………........ 2.8.1 Introduction………………………………………………...... 64 2.8.2 Government SME 65 support………………………………....... 2.8.3 The unique nature of 66 SMEs……………………………....…. 2.8.4 The retail SME…………………………………………......... 67 2.8.5 Supply chain and the retail 69 SME…………………………..... 2.8.6 E-procurement and the 72 SME……………………………........ 2.8.7 Disintermediation………………………………………......... 73 2.8.8 The b2c………………………………………………............ 73 2.8.9 Future………………………………………………............... 73 2.8.1 Links to this 74 0 research……………………………………....... 2.9 Buyer seller relations in the 74 SME…………………………………...... 2.9.1 Introduction………………………………………………...... 74 2.9.2 Defining the 75 relationship……………………………............. 2.9.3 Relationship marketing and 77 SMEs..........……………............ 2.9.4 Relationship 77 commitment………………………………........ 2.9.5 Trust………………………………………………................. 78 2.9.6 Risk............................................................. 79 ............................. 2.9.7 Data web 80 integration………………………............................ 2.9.8 Links to this 80 research……………………………................... 2.10 Chapter 81 summary.......…………………………………….................... 2.10. Introduction………………………………………………...... 81 1 2.10. Overview of the 81 2 chapter…………………………………....... Chapter 3 The Development of Technology Acceptance Models 3.1 Introduction………………………………………………................... 83 . 3.2 The Theory of Reasoned Action (TRA) 84 …………………………....... 3.2.1 Introduction…………………………………………….......... 84 3.2.2 The aims of TRA………………………………………......... 84 3.2.3 The theory…………………………………………................ 85 3.2.4 Link to this 87 research……………………………………......... 3.3 The Theory Planned Behaviour

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