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The development of an international model for technology adoption: the case of Hong Kong

The purpose of this study is to examine the causal relationships between the internal beliefs formation of a decision-maker on technology adoption and the extent of the development of a technology adoptive behaviour. In particular, this study aims to develop an International Model For Technology Adoption (IMTA), which builds upon the Theory of Planned Behaviour (Ajzen 1992) and improves on the framework of the Technology Acceptance Model (Davis 1986). The development of such a model requires an understanding of the environmental factors which shape the cognitive processes of the decision maker. Hence, this is a behavioural model which investigates the constructs influencing the adoption behaviour and how the interaction between these constructs and the external variables can impact on the decision making process at the level of the firm. Previous research on technology transfer and innovation diffusion has classified factors affecting the diffusion process into two dimensions: 1) external-influence and 2) internal-influence. Hence, in this research, the International Model For Technology Adoption looks at how the endogenous and exogenous factors enter into the cognitive process of a technology adoption decision through which attitudes and behavioural intentions are shaped. Under the IMTA, the behavioural intention to adopt is a function of two exogenous variables, 1) Strategic Choice, and 2) Environmental Control. The Environmental Control factor is further categorised by two exogenous factors, namely, 1) Government Influence, and 2) Competitive Influence. In addition, the Competitive Influence factor is, in turn, classified into five forces: namely, 1) Industry Structure, 2) Price Intensity, 3) Demand Uncertainty, 4) Information Exposure, 5) Domestic Availability. Regarding the cognitive process which forms the attitude to adopt, it is hypothesised to be affected by six other endogenous beliefs: 1) Compatibility; 2) Enhanced Value; 3) Perceived Benefits; 4)Adaptative Experiences, 5) Perceived Difficulty; and 6) Suppliers’ Commitment. A survey research method was utilised in this study and the research instrument was developed after a comprehensive review of the relevant literature and an expert interview. A total of 298 completed questionnaires were returned; giving a response rate of 13.56%. Of the 298 questionnaires, 39 of the responses were unusable with missing date. This gives a total of 259 usable questionnaires and an effective response rate of 11.78%. The results of the analysis suggested that the fitness of the International Model For Technology Adoption was good and the data of this study supported the overall structure of the IMTA. When compared with the null model, which was used by the EQS as a baseline model to judge to overall fitness for the IMTA, the IMTA yielded a value of 0.914 in the Comparative Fit index; hence, indication of a good fit model. In addition, the results of the principal component analysis also illustrated that the 16-factor International Model For Technology Adoption was an adequate model to capture the information collected during the survey. The results shown that this 16-factor structure represented nearly 77% of the total variance of all items. A further analysis into the factor structure, again, revealed that there existed a perfect match between the conceptual dimensionality of the International Model For Technology Adoption and the empirical data collected in the survey. However, the results of the hypotheses testing on the individual constructs were mixed. While not all the magnitude of these ten hypotheses was statistically significant, almost all pointed to the direction conceptualised by the IMTA. From these results, it can be interpreted that while the results of the structural equation modelling analysis provided overall support to the International Model For Technology Adoption, the results of individual constructs of the Model revealed that some constructs were forming a larger impact than others in the decision making process to adopt foreign technology. In particular, the intention to adopt was greatly affected by the attitude of the prospective adopters, the influence of the government and the degree of industry rivalry. However, the impact of the overall competitive influence factor on the intention to adopt was not supported by the results. Again, the existence of investment alternative was also not a serious concern for the prospective adopters.
Type of thesis
The University of Waikato
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