IS research has already made extensive use of one particular technological inno
l computers (e.g., Bretschneider and Witt
e availability of additional information in interactive rms can be viewed as a relative advantage that would help to explain the diffusion
eory
vation research tradition: research on the adoption and diffusion of innovations (Allen, 2000). Theories of innovation have been used to explain the adoption patterns of information technologies ranging from persona
mer, 1993), spreadsheets (e.g., Brancheau and Wetherbe, 1990), business computing (e.g., Attewell, 1992), inter-organizational systems such as electronic data interchange (e.g., Bouchard, 1993), and recently to e-commerce (e.g., Gregor and Jones, 1999).
One of the widely used theories of the adoption and diffusion approach to technological innovation is Rogers’ (1983; 1995) innovation diffusion theory. According to Rogers, an innovation can be defined as “an idea, practice, or object perceived as new by an individual” (Rogers, 1983, p.11). The main elements of the process of innovation diffusion have been described by Rogers (1983) as: an innovation, which is communicated through certain channels, over time, among the members of a social system.
1. Innovation characteristics
One branch of diffusion research that is used to predict or explain the adoption of innovations involves individuals’ perceptions of the properties or characteristics of an innovation itself. The basic “attributes of innovation” that can be used to predict or explain diffusion include: relative advantage, compatibility, complexity, observability, and trialability. Except complexity, all the other four characteristics have a positive relationship with adoption (Rogers, 1983).
The benefits of electronic commerce fit well into the attribute of innovation framework (Esrock, 1999). Th
fo
of online shopping. Likewise the potential economic benefits of lower prices and ve advantage over the way that consumers have aditionally shopped. The potential for online trial of products and services fits into the
ditional ways of shopping because they have to give up something (bey
. One area of diffusion research involves how the social system fects diffusion (Rogers and Scott, 1997; Gatignon and Robertson, 1985). Rog he adoption process from the diffusion process in at the diffusion process occurs within society; whereas, the adoption process pert
eaders and change agents, and types of inno
higher quality provide a relati tr
trialability attribute category.
Similarly, the attribute categories also help to explain the potential obstacles to online shopping. Failure to own hardware and software can be viewed as a compatibility problem in that these are technologies that one must own and be comfortable using before making purchases online. The ease of use problem fits into the complexity factor, while risk issues and security/privacy embody the relative advantage variable. Some Internet users may perceive that electronic commerce is no better than tra
ond money) in the process of conducting online transactions: their own sense of security and attendant feelings of a threat to personal privacy (Esrock, 1999).
2. Social system
The diffusion theory literature assumes that diffusion occurs within the boundaries of a social system
af
ers (1983) also differentiates t th
ains to an individual.
Rogers defines a social system as “a set of interrelated units that are engaged in joint problem solving to accomplish a common goal” (Rogers, 1983, p.23). The members or units of a social system may be individuals, informal groups, organizations, and/or subsystems. Diffusion is affected by the nature of the social system, its norms, the role of opinion l
vation decisions. The values and norms of a system are basic characteristics which determine the size of the group of potential adopters. The innovation’s degree of compatibility with these values and norms determines the speed of diffusion
(Rogers, 1983).
In a study on the locus of global e-commerce, Kshetri (2001) identifies the following forces of a social system influencing the distribution and forms of global e-commerce: economic factors, political factors, cultural factors and supranational insti
mpered y political and legal factors such as the governments’ concern about the free flow of info ternet, tariff and non-tariff barriers to ICT products, regulations telecommunications and courier markets, absence of appropriate e-commerce laws, and
se (Kshetri, 2001). tutions.
Economic factors mainly influence perceived relative advantage of Internet use whereas political and cultural factors influence the compatibility of the Internet with a society. Economic factors such as income, availability and price structures of ICT products, bandwidth and supporting infrastructures, and availability of credit influence relative advantages of Internet and e-commerce. The Internet’s degree of compatibility with the values and norms of a social system determines its diffusion in the system, purpose of its use, site visited, purchase decision, and also type of the product likely to be bought and sold. Internet adoption in some countries is ha
b
rmation on the In in
concern about the outflow of foreign currency (Kshetri, 2001).
Supranational institutions’ initiatives are influencing the price, quality and availability of ICT products and services, mainly in developing countries, thereby increasing relative advantage of Internet use. Moreover international institutions are influencing laws, regulations and policies in developing countries, making them more compatible with Internet u
It might be thought by some researchers that Rogers’ theory is more at the individual level. However, Rogers (1976) argues that the overwhelming focus on the individual as the unit of analysis in diffusion research is often due to the assumption that the individual, as the unit of response, must consequently be the unit of analysis. In Rogers’ opinion, “the research designs, concepts, and measurement procedures of diffusion research have been very stereotyped. This similarity has facilitated the synthesis of diffusion findings… in fact, all diffusion studies look a good deal alike.
But such standardization of research approaches has also greatly limited the cont
rsonal computers initi
iffusion theory.
The idea can be readily applied to a new paradigm being rapidly adopted by the inte
ribution of diffusion research to more effective social programs and to furthering the scientific understanding of communication and human behaviour change.” (Rogers, 1976, p.299)