First, the authors develop an extended technology acceptance model that incorporates trust and perceived behavioral control and examine it in settings outside the United States to better understand the adoption o f e-commerce across cultures. Contrary to the authors’ expectations, the predictive power 0 f the technology acceptance model seems robust and holds true for both Pakistan and Canada, despite some noteworthy differences between the two cultures.
Second, although the importance o f perceived ease o f use and per chivied usefulness on consumers’ intentions to shop online was validated across both cultures, the results highlight the complex relationships between perceived ease o f use, perceived usefulness, and intention to adopt in each country. The authors offer suggestions to technology managers and e- retailers regarding navigating through new technology and commerce adoption under various cultural contexts.
Keywords: technology acceptance model, early adoption stage, online shopping adoption, perceived ease of use, perceived usefulness SE of the Internet has increased remarkably in the past few decades, transforming the world into a global village. The number of online shoppers grows rapidly as Internet adoption and penetration level else increase (Colon, Roth, and Bearded 2010; Ha and Stale 2009). The Boston Consulting Group (2014) has restated that by 201 6, the Internet economy will grow to $4. 2 trillion in the G-20 economies. Presently, the Internet economy contributes 5%-9% to the total gross Abdul R.
Ashram is a doctoral candidate, Australian School of Buss news, University of New South Wales (e-mail: a. [email protected] Du. AU). Narrowing (Take) Ethnography is Associate Professor Of M racketing and Product Innovation, Goodman School of Business, Brock Universe sits, and Research Fellow, Research Administration Center, Aching Maim University (e-mail: [email protected] Ca). Easygoing AAU is Associate Professor of Global Marketing Thunderbird School of Global M an augment (e-mail: Easygoing. [email protected] Du). M teethe Rob son served as associate editor for this article. 8 Journal of International M racketing domestic product in the developed world, and in develop opining markets, it increases 15%-AS% every year. Inter net World Stats (2014) reports that 40. 7% of the world’s population uses the Internet, and this number rises daily. According to recent research, a major reason for the downfall of camera specialist Jeeps, electrical group Comet, entertainment retailer HAM, and DVD rental firm Blockbuster was that they did not respond to he threat posed by the convenience and low costs of websites such as Apple’s tunes or online Stores such as Amazon . Mom (Dave and Maiden 2013). Although the Internet has its roots in American culture and most of its users were previously clustered in the Journal o f International Marketing 02014, American Marketing Association volt. 22, NO. 3, 2014, up. 68-93 SINS 1069-XX (print) 1547-7215 (electronic) advanced Western world (North America and Europe), in the past few years it has penetrated other areas. Indeed, according to a recent Internet World Stats (2013) survey, Asia has the greatest number of Internet seers (1 billion), followed by Europe with 500 million and North America with 273 million.
It is widely believed that more Internet users will generate more business (Unguent and Barrett 2006). However, despite the numerous benefits of e-commerce and its acceptance in advanced Western countries, the pace and level of acceptance is lower in the emerging Asian markets (Names). This finding is further highlighted in the Global Information Technology Report (2013), which ranked many developing Asian countries (e. G. , Pakistan, India, Bangladesh, Indonesia) low in terms of their network readiness (I. E. A country’s ability to exploit the purport entities offered by information and communications tech oenology).
The lower pace and level of acceptance of commerce in Names may be because e-commerce and several related technologies were developed in Europe and North America (Straus, Keel, and Brenner 1 997; Van Slake et al. 201 0), where people’s characteristics (e. G. , beliefs, values, norms) are very different from those of people in Asian countries. Therefore, an under standing of the specific drivers of cross-national adopt Zion patterns of e-commerce technologies (Alsatian and Dennis 2010; Collation, Griffith, and Walking 2006; D’. Year, Mesas, and Has 2005; McCoy, Galatea, and King 2007; Straus, Keel, and Brenner 1997) is crucial for companies struggling with the complexities of effect Tivoli targeting customers internationally. Current research on e-commerce adoption across CUL tires, however, is limited. In this context, support for the factors that influence e-commerce adoption remains equivocal (Alsatian and Dennis 2010). This is primarily due to the limited applicability of Western developed theory and theoretical interrelationships between online shopping evaluations and intention to shop online to different cultures (Unguent and Barrett 2006; Tong 010).
Moreover, research into factors that affect commerce adoption in Names is mostly based on assumptions about culture and business that might not apply in the Asian context. Similarly, from a practical perspective, the implementation of e-commerce in Names cannot be modeled on the Western experience (Collation, Griffith, and Walking 2006). Furthermore, the empirical assessment of technology adoption seems to be subject to cross-sectional hetero genetic across customers. This has led researchers to doubt whether technology acceptance is similar across different cultures (McCoy, Galatea, and King 2007; Sings et al. 2006).
Consequently, the applicability of the technology acceptance model (TAM) across all cultures has also been questioned (Collation, Griffith, and Yale cantina 2006; McCoy, Galatea, and King 2007; Straus, Keel, and Brenner 1997). In particular, researchers have argued that the relationship between the TAM con Struck Of perceived usefulness (PILL) and perceived ease of use (EPEE) is “perhaps more complex than typically postulated” (Keel, Brenner, and Coonskins 1 995, p. 78). Similarly, research has reported that the importance of PU and EPEE, regardless of cultural factors, varies according to the stage of adoption (Davis, Bugaboo, and
Warsaw 1989). Not surprisingly, few studies have even questioned the importance of PEKOE in technology adoption (e. G. , Keel, Brenner, and Coonskins 1995). More recently, Www and Lu (2013) propose that the roles of PU and EPEE in the TAM are still unclear and need further exploration. Thus, for e-retailers trying to receive customer orders and handle inquiries on a global basis, it is important to have an enhanced understanding of the TAM’s appropriateness beyond the boundaries of the developed Western world so they can optimize the effectiveness and appropriateness of their process strategy to foster e-commerce adoption.
OBJECTIVES More than ten years have passed since Belle (2004) pro posed that the role of e-commerce in international mar kiting needs further exploration. Hyman and Convicts (2006) have since argued that firms may generalize their scant knowledge about foreign markets and customers without actually appreciating the complexities involved, which may result in poor performance in international markets. Therefore, managers in the e-retailing sector a major component of international business today-? need to know the relative importance of the factors that influence the receptivity of consumers in Names to engage in e-commerce.
More importantly, to employ a technology across cultures successfully, it is essential to adapt it to the unique elements of the new market. Hefted (1980) proposes that culture is widely believed to influence individual values and affect behavior. Motif voted by research that shows that behavioral models do not universally hold across cultures (Series and Kernighan 2006), we explore how culture may influence individualize e-commerce adoption. In addition to cultural differ encase, prior research has shown that people at different stages of adoption exhibit different behaviors (Adams,
The Technology Acceptance M Del Under Different Cultural Contexts 69 Nelson, and Todd 1992). In this study, we contribute to the international marketing literature by exploring the influence of (1 ) different cultures-?in this case, Names (Pakistan) and the developed world (Canada)-?and (2) adoption stages-?namely, the early adoption stage (Peak Stan) and already adopted stage e-commerce adoption and TAM constructs. First, because of the rapid globalization of markets and retailing channels, there is an urgent need to understand and learn the application of the TAM in cultures that have been neglected thus far.
Using the TAM as a thee retrial lens, we explore and test the cross-national apple capability of the extended TAM in online shopping in Peak Stan and Canada. The extended TAM is built on the classical U. S. -based TAM, and we propose that it is more appropriate to the unique context of e-commerce adoption in Names (I. E. , it incorporates the role of trust and perceived behavioral control [BBC]). Cross-cultural research has shown that consumers in different cultures have differing expectations of what makes an e-retailer trustworthy Ravenous, Attractions, and Sardine 1999).
Moreover, because of the unique tauter of online shopping (I. E. , consumers cannot touch, taste, or feel the product), it is perceived as risky (Pavlov 2003). This uncertainty highlights the importance of trust in e-commerce adoption. Similarly, Pavlov (2003) and Pavlov and Festoon (2006) argue that a lack of trust actually reduces both customers’ perceptions of control over online transactions and their confidence, thereby creating a barrier to e-commerce adoption. As a result, BBC is more likely to play a critical role in the context of online shopping.
Thus, following Straus, Keel, and Brenner (1 997), this study aims to confirm revises weakly supported findings regarding the TAM’s applicability in a culture with a high computerized media support index (ISMS; I. E. , a culture that is high in uncertainty avoidance, power distance, and mass culinary and low in individualism)-?namely, Pakistan. Second, exclusively considering the adoption of e-commerce without distinguishing different adoption stages (I. E. , early adoption and already adopted stages) may mask divergent customer reactions to the adoption Of e. Mom mercer and thus inhibit a more in-depth understanding of customer perceptions of the Internet as a shopping plat arm. This study builds on previous research and clarifies the confusion among researchers regarding the import dance of PU and PEKOE in the context of e-commerce adoption. We propose a theoretical rationale for the dif efferent effects of PU and PEOPLE on e-commerce adoption 70 Journal of International M racketing by distinguishing two adoption stages: (1 ) early adoption and (2) already adopted.
Because there exists little com moon ground among TAM studies regarding the roles of PU and PEOPLE in influencing technology adoption, by considering e-commerce adoption in Pakistan (in early takes of e-commerce adoption) and Canada (where commerce has been adopted), this study clarifies when and why PU and PEPCO influence e- commerce adoption. TO achieve the objectives Of this study, we chose peak Stan and Canada because our research goal is to obtain data from countries that are not only culturally different but also at different stages of e-commerce adoption.
For example, drawing on Hypotheses (1980, 2001) cultural dimensions (power distance, individualism, masculinity, and individualism), Pakistanis ISMS score is 261 , whereas Canada’s ISMS score is 159. The benefit of sing ISMS is that it considers the cultural factors as an aggregate index (I. E. , a means of expressing the simulcast nexus effects of all four cultural dimensions on tech oenology acceptance) rather than factor by factor (Van Slake et al. 2010). The ISMS scores have been used to predict the adoption of consumer-oriented e-commerce across countries (Van Slake et al. 010) and the adopt Zion of e-mail in the United States, Switzerland, and Japan (Straus, Keel, and Brenna 1997). Similarly, Names such as Pakistan and India are among the fastest-growing economies, with populations of 180 million and 1237 billion, respectively, roughly half of homo are between 15 and 29 years of age and are quickly catching up to their Western counterparts in terms of Internet usage. According to Internet World Stats (2014), the number of Internet users in Pakistan and India has increased considerably from . 13 million and 5 million in 2000 to 29 million and 137 million in 2012.
Similarly, the penetration rate has increased from and in 2000 to 15. 5% and 11. 4% in 2012 (Internet World Stats 2013). Moreover, in terms of purr chasing power, Pakistan and India are the 26th- and 3rd-largest economies in the world, respectively (Inter national Monetary Fund 2013). Although Internet usage is increasing rapidly in Names, the Global Inform nation Technology Report (2013) ranks Pakistan 10th and India 68th out of 144 countries in terms of their e-readiness. Similarly, according to the Boston Consulting Group’s (2014) ranking of 65 countries on the basis of their e-friction (I. factors inhibiting con summer, businesses, and others from fully participating in e-commerce), Pakistan ranked 64th and India ranked 58th. In contrast, Canada, which represents the develop pooped world in our study, has an Internet penetration of 83% and ranks high in e-readiness (I. E. , 12th) and fairly owe in e-friction (I. E. , 10th). The different cultural backgrounds and e-commerce adoption stages of Peak Stan and Canada provide us with a platform for exam inning potential differences and reasons for inconsistent e-commerce adoption across cultures at different commerce adoption stages.
THEORETICAL BACKGROUND AND CONCEPTUAL FRAMEWORK Extended Technology Acceptance Model Over the past few years, there has been increasing inter est. among international marketing researchers in under standing individual behaviors and product/technology adoption in Names (e. G. , Collation, Griffith, and Walking 2006; Sultan, Room, and Gao 2009). For exam plea, Straus (1994) explores the influence of culture on telephone, fax, and e-mail use in the United States and Japan. The study results show that telephone use was similar across the two countries; however, e-mail and fax use varied distinctly.
Similarly, Sings et al. (2006) extends the TAM by applying it to understanding con summer acceptance of international websites in Brazil, Taiwan, and Germany. The study results show that “CUL trial adaptation” (I. E. , designing websites that incisor rate cultural difference) is a critical factor for determine ins international website usage. Several studies have proposed frameworks that identify and investigate the determinants of tech oenology acceptance/ adoption (e. G. , Zen 1 991 ; Davis, Bugaboo, and Warsaw 1989).
Indeed, the TAM has gained considerable theoretical and empirical support in predicting tech oenology acceptance among potential users and decision makers (Zen 1991; Www and Lu 2013). The TAM the irises that two key beliefs about a new technology, PU and EPEE, determine a person’s intention to adopt a new technology (Davis 1989). According to Davis (1989), users’ acceptance of a new technology depends armorial on its function (PIG) and secondarily on the ease or difficulty with which its function can be per formed (EPEE).
The predictive power and parsimony of the TAM enables researchers to apply it to various set tings and to analyze and understand different purchase behaviors (Sings et al. 2006; Www and Lu 2013). The notion to test the applicability of the TAM across cultures (I. E. , outside Western cultures) has recently drawn the attention of marketing and e-commerce researchers (Luminary 2007; Alsatian and Dennis 2010; McCoy, Galatea, and King 2007; Straus, Keel, and Brenna 1997). Among these studies, however, very few have explored Names (Sultan, Room, and Gao 2009; Tong 201 0), and none have explored Pakistan.
Similarly, few studies have investigated e-commerce adoption among Canadian consumers. Researchers have argued that Canada and the united States together represent a single (Anglo) “North American” culture with few differences; however, some significant differ encase have been reported between the two countries in the context of online shopping (Cry et al. 2005) and information technology adoption (Lippies and Palomar 2007). Thus, the external validity of the TAM is still in question (Luminary 2007; McCoy, Galatea, and King 2007; Straus, Keel, and Brenna 1997).
Indeed, Hefted (2001) criticizes several management theories for being culture specific because most of them reflect N Roth American culture. International marketing researchers and practitioners have stressed the importance Of understanding what motivates foreign customers to adopt and purchase from websites (Colon, Roth, and Bearded 2010; Sings et al. 2006). So far, researchers have not reached a con senses regarding customers’ acceptance of online shop ping, because most of the research findings are mixed ND inconclusive, particularly in settings other than the United States.
Thus, it is critical to explore and compare hen how different cultural contexts and adoption stages influence e-commerce use. Figure 1 shows our proposed extended TAM model with trust and BBC as additional influences on intention to shop online. Trust In addition to PU and EPEE, an important factor involved in technology adoption is trust. One of the key reasons customers use the Internet but do not actually purchase online is lack of trust in e-retailers, because customers perceive online transactions to be risky (Lynch and Rarely 2000).
In the online context, trust has been defined as the extent to which a person expects that a new technology is credible and reliable (McKnight and Cochrane 2002). In the context of this study, we define trust as the extent to which consumers expect that an e-retailer will meet their transaction expectations and will not engage in opportunistic behavior (Morgan and Hunt 1 994; vivo 2003; Pavlov, Liana and Sue 2007). Online shopping involves actively engaging in tech oenology; websites are both an information technology The Technology Acceptance Model Under Different Cultural Contexts 71 Figure 1 .
TAM Hypothesized and Tested in Pakistan (High ISMS) and Canada (LOW ISMS) and a channel between customers and the e-retailer. Trust and technological factors should work together in influencing customers’ decisions to shop online. The importance of trust is heightened in the online shopping context because customers cannot touch, taste, or feel the product and because they do not trust those collect ins the data (Hoffman, Novak, and Parental 1999).
Pre vicious studies have shown that improved trust leads to satisfactory transactions (Www and Chem. 2005) and reduces behavioral as well as environmental uncertainty (Pavlov 2003). Furthermore, Friedman, Kahn, and Howe (2000) demonstrate that trust plays a critical role in influencing users to exchange money and sensitive personal information willingly online. As such, the trust-augmented TAM developed by Delbert, Malta, and Orin (2003) seems to be more useful in explaining customer technology acceptance behavior than the basic TAM.