Ka Young Oh and Lorraine Warren
– The purpose of this paper is to explore the adoption, use, and performance of e-trade systems in South Korean businesses.
Abstract
Purpose
The purpose of this paper is to explore the adoption, use, and performance of e-trade systems in South Korean businesses.
Design/methodology/approach
The authors developed a modified Technology Acceptance Model extended through resourced-based view theory, to address the performance aspect, hitherto neglected in previous studies. Using the new model, 114 businesses were surveyed, measuring relationships between perceived usefulness, perceived ease of use, e-system usage, and business performance. Latent mean analysis was performed to examine the moderating effects of high and low e-trading system usage.
Findings
Through latent mean analysis, the authors determined that the influence of variables varies depending on the level of e-trading system usage. In both the high and low usage groups, perceived convenience influenced reuse of e-trading systems and reuse also had effects on business performance.
Research limitations/implications
The authors only examined Korean enterprises, so it would be useful to also examine the foreign counterparts in international e-trade transactions. Follow-up studies could examine how the dynamics of the sector change over time. Qualitative case study approaches could better understand the perspectives of firms in relation to management strategy formulation and decision making.
Practical implications
The results provide important insight for managers and policymakers concerned with developing electronic trading system strategies, and e-trading system contexts.
Originality/value
Although many studies have explored relationships among perceived advantages, such as usefulness and convenience and use and performance, none have investigated the relationship between usage and business performance targeting e-trading systems.
Details
Keywords
Ka‐Young Oh, Alistair R. Anderson and Doug Cruickshank
E‐trade (or electronic trading) appears to offer increased efficiency in business processes, but only a limited number of small firms in Korea have adopted the new processes. The…
Abstract
Purpose
E‐trade (or electronic trading) appears to offer increased efficiency in business processes, but only a limited number of small firms in Korea have adopted the new processes. The purpose of this paper is to try to establish the obstacles and the perceived barriers to the continuing use of e‐trade technologies by small Korean firms.
Design/methodology/approach
The literature was employed to develop a theoretical model that includes perceived risk and the environment. The model was operationalised in a questionnaire completed by 164 respondents. LISREL validated the instrument and the model. The data were analysed using structural equation modelling.
Findings
The authors found that information risk and business risk negatively affect adoption and use. The authors also tested the relationship between the environment of the organisation and adoption of e‐trade. The results show that the maturity of information technology and the innovation characteristics of the firm have positive influences on the adoption of e‐trade.
Research limitations/implications
This study uses data from existing users, so the findings extend the existing literature about decisions to adopt and use new processes. The data are, however, limited to the Korean context.
Practical implications
The study demonstrates the negative influence of perceptions about risk associated with innovative processes. Thus, this awareness and understanding of how barriers are perceived should help to increase the diffusion of e‐trade systems. The authors' findings indicate what has to be done for developing and extending the use of e‐trade.
Originality/value
The study is novel and contributes to the understanding of the adoption and use of new processes.