3 Essays on Art eCommerce in the Light of Western Commercial Art Markets Acceptance (Adoption), Implementation (Use), Consequences (Impact) vorgelegt von Katharina Bayer M.A. geb. in Tscheljabinsk, Russland von der Fakultät VII – Wirtschaft und Management der Technischen Universität Berlin zur Erlangung des akademischen Grades Doktor der Wirtschaftswissenschaften - Dr. - rer. oec. - genehmigte Dissertation Promotionsausschuss: Vorsitzender: Prof. Dr. Sören Salomo Gutachter: Prof. Dr. Jan Kratzer Gutachter: Prof. Dr. Elmar Konrad Tag der wissenschaftlichen Aussprache: 13 Juli 2018 Berlin 2018 Abstract i ABSTRACT The past few years have seen a quantum jump in the increase of Information and Communication Technology (ICT) - related innovations and e-businesses primarily embracing in consumer-oriented, web-based electronic commerce (EC) dedicated to selling visual art and collectible items in the western commercial art markets. The Internet medium functions as a novel retail patronage mode, wherein art objects can be discovered and purchased entirely online, without usually being able to inspect the object prior to purchase physically. Despite the growing media interest in EC of art objects (art EC) in this sector and while the cultural industry (e.g. the music, film) has so far changed greatly from the application of the Internet and ICT, the reality is that the sales generated in the online visual art segment have still mostly fallen short of their potential when compared to the offline art market and the art market is struggling to move to the online space. Stimulating demand and attracting consumers to purchase visual art solely on the Internet seems to be far more challenging in this demanding sector than in many other industries, setting the art market somewhat apart from other current electronic commerce trends and developments. One of the key obstacles for art EC diffusion to become more widespread is embedded into the nature of art sale including tight and complex interdependencies and highly personalized sales tradition between buyers and sellers as well as the hedonic nature of the artistic product, causing a perceived discrepancy between the characteristics of the established and the online channels. Concerning these multiple business challenges, it is imperative to look more closely at this phenomenon to enhance the understanding of this emerging and new segment. Nevertheless, art EC is not easy to be explored due to the complex information requirements, and inadequacy and inaccessibility of data and academic research in the literature. However, this is exactly the reason to face this challenge and to provide valuable insights for this emerging sector. With this in mind this doctoral dissertation aims to overcome these challenges and provide the first theoretical progression on the dynamic interdependencies among various research disciplines related to online selling of artworks. Additionally, the researcher intends to make practical contributions to the management teams of the innovative applications within the online art segment. In the absence of comprehensive empirical data from industrial practitioners and academic researchers, qualitative research method was adopted in this research. Using the consumer’s Abstract ii perspective, three essays are presented on specific issues concerning art EC. Essay 1 focuses on art EC adoption by developing a model that predicts the key drivers of consumers’ intention to accept and engage in art EC based on Rogers’ (1995; 2003) theoretical foundations of Innovation Diffusion Theory (IDT). Essay 2 investigates the implementation and success of different dimensions of art EC by employing the updated Information System (IS) success model by DeLone and McLean (2003; 2004). Finally, essay 3 analyses the consequences of art EC evolution on the existing Western offline art market landscape in terms of disintermediation, cybermediation, and reintermediation through a historical analysis (Gottschalk, 1969). Each essay in this dissertation makes independent contribution. The findings and conceptual models in essay 1 and essay 2 provide insights into the behavioural aspects and demographic characteristics of potential art EC adopters that can help to predict consumer reactions and explain the reasons for people’s resistance to utilise art EC applications. They also highlight the factors that cause users to perceive art EC applications as successful. As for essay 3, it explores the impact of art EC and the Internet based on three settings, which are intermediation, cybermediation, and reintermediation. Advancing the limited knowledge in this area is essential for electronic vendors (e-vendors) to formulate effective strategies in their effort to develop more successful business or improve their existing online presence. With the findings, these businesses may meet the needs of potential adopters and actual users better as they understand the nature and impact of art EC. Further research is recommended and outlined to verify the developed conceptual models and to establish more realistic assessment of the current art EC status. Table of Contents iii TABLE OF CONTENTS 1 LIST OF FIGURES…………………………………………………………………... v 2 LIST OF TABLES……………………………………………………………………. vi 3 LIST OF ABBREVIATIONS AND ACRONYMS…………………………………. vii 4 PART A I. 1 INTRODUCTION……………………………………………………………………... II. SUMMARY OF ESSAYS……………………………………………………………. 8 1.1 Essay 1…………………………………………………………………………… 9 1.2 Essay 2…………………………………………………………………………… 12 1.3 Essay 3…………………………………………………………………………… 15 III. OUTLINE OF DISSERTATION AND THEORETICAL FRAMEWORK………… 18 1.4 Academic Positioning……………………………………………………………. 20 1.5 Bridging the Gap between Theory and Practice………………………………..... 22 1.6 Terminology……………………………………………………………………… 25 1.7 Conceptual Framework…………………………………………………………... 30 1.8 References Part A………………………………………………………………... 32 5 PART B Essay 1: Exploring consumer acceptance of EC applications in western commercial visual art markets: Integrating Trust in e-vendor and demographic characteristics with the Diffusion of Innovations Theory…………………………………………………….. 50 2.1 Introduction………………………………………………………………………. 51 2.2 Theoretical Background………………………………………………………..... 54 2.3 Methodology…………………………………………………………………….. 60 2.4 Proposed Framework and Research Propositions……………………………….. 63 2.5 Conclusion……………………………………………………………………...... 85 2.6 Managerial Implications…………………………………………………………. 86 2.7 Limitations and Future Research………………………………………………... 91 2.8 References Essay 1……………………………………………………………… 92 Table of Contents iv Essay 2: A proposal for a framework for investigating system success in the context of art - EC. Application of the updated DeLone and McLean’s IS Success Model at the individual level of analysis……………………………………………………………… 121 3.1 Introduction……………………………………………………………………… 122 3.2 Theoretical Background: DeLone and McLean’s IS Success Model…………… 125 3.3 Research Design…………...……………………………………......................... 130 3.4 Research Framework for Art EC Success Based on Perspectives of Consumers. 133 3.5 Conclusions and Managerial Implications……………………………………..... 158 3.6 Limitations and Future Research………………………………………………... 162 3.7 References Essay 2……………………………………………………………… 163 Essay 3: The rise of art EC. Toward a better understanding of its transformative effects on established western commercial art markets. Past. Present. Outlook………………. 187 4.1 Introduction…………………………………………………………………….. 188 4.2 Method ………………………………………………………………………… 189 4.3 The Beginning and Early Predictions of Art EC……………………………….. 191 4.4 State of The Art / Status Quo………………………………………………….... 204 4.5 Early Predictions? Where are We Now?.............................................................. 207 4.6 Conclusion…………………………………………………………………….... 226 4.7 Limitations and Future Research……………………………………………….. 228 4.8 References Essay 3……………………………………………………………… 229 6 PART C 5.1 Overall Conclusion……………………………………………………………... 251 5.2 Limitations of the Research, Suggestions for Further Research, and Outlook… 257 5.3 References Part C………………………………………………………………. 261 5.4 Total References Combined……………………………………………………. 264 List of Figures v LIST OF FIGURES Figure 1-1 Structure of Dissertation……………………………………………………… 20 Figure 1-2 Typology of Research in Industrial, Work, and Organisational Psychology… 24 Figure 1-3 Dimensions of Electronic Commerce………………………………………… 29 Figure 1-4 Conceptual Framework of the Dissertation…………………………………... 31 Figure 2-1 Adopter Categories …………..………………………………………………. 60 Figure 2-2 Conceptual Model - Factors that Influence Consumers’ Adoption of Art EC.. 63 Figure 3-1 Revised IS Success Model……………………………………………………. 129 Figure 3-2 Research Framework of art EC success from the perspective of consumers with dependent variables: use, user satisfaction, and net benefits……………. 132 List of Tables vi LIST OF TABLES Table 3-1 The Foundation of Survey Instrument………………………………………... 157 List of Abbreviations and Acronyms vii LIST OF ABBREVIATIONS AND ACRONYMS Art EC Art Electronic Commerce B2B Business to Business B2C Business to Consumer B2B2C Business to Business to Consumer C2B Consumer to Business C2C Consumer to Consumer D and MM DeLone and McLean’s Model e.g. exempli gratia (for example) cf. compare (Latin: confer) e-business Electronic Business EC Electronic Commerce e-government Electronic Government et al. and others (Latin: et alii) etc. et cetera (and so forth) EU European Union e-vendor Electronic Vendor Fig. Figure i.e. id est (that is) ICT Information and Communications Technology