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attitude and expectancy about usefulness and ease of use, that facilitating conditions and social
infl uence are important drivers of usage. Previous theorists (Hooff
et al
. 2005) have added the
element of the impact of situational infl uences on communication technology usage. This
indicates that the observation of others using or refusing technology in that environment may
shape individual views about its applicability to their needs.
Fuchs
et al
. (2010) further extended the debate and highlight that the environmental context
and the availability of ICT infrastructure are important drivers of technology adoption.
Lippert and Davis (2006) previously argued that these types of considerations are limited and still
do not explain why 50 per cent of implemented systems in the United States for example are
considered failures. They therefore introduce trust into a conceptual model and propose that
'technology trust' and 'interpersonal trust' along with 'planned change activities' will infl uence
technology adoption behaviour and enhance the level of adoption and internalization within
fi rms and individuals.
The e-commerce adoption mentioned in the fi nal stage is scarce for fi rms which were
traditionally offl ine operators at their inception (Lippert and Davis 2006). While in many cases
resource constraints are posited as the cause, Gray (2006) highlights that ICT adoption may in
fact be used to overcome resource limitations in order to grow the business. The reality however
is that some small to medium sized fi rms are unable to fi nd these resources initially. Many small
companies in the developing regions such as the Caribbean, for example, argue that the returns
on such an investment are not substantial enough. Nonetheless, it is possible that this reluctance
is, however, more an issue of attitude than one of resources. Zappala and Sarchieli (2006) purport
that the attitude towards ICT adoption and the climate for innovation, are key determinants in
the adoption of e-commerce. Very interestingly they contrast the fact that online selling has
stagnated although online purchasing is on the rise. Alternatively Mochrie
et al
. (2006) argue that
some fi rms simply do not have suffi cient capacity to develop both the physical and human
capital necessary to develop effective adoption strategies. Firms may choose to reject some
innovations based on the above constraints. Rogers (1962, 1976, 1983) states that rejection of
innovations may take place at any stage in the innovation diffusion process mentioned earlier and
discontinuance may also occur.
There is consensus by many theorists (Wirtz 2001; Porter 2001; Rappa 2002) that the
rules of competition for established business have been transformed by the Internet in three
critical ways:
•
information asymmetry reduction;
•
disintermediation; and
•
reintermediation.
Information asymmetry on markets has been reduced by the web (Wirtz 2001). Collecting
information on products such as features and price has become much easier without the
need for physical, actual visits to outlets. For the fi rm, however, the greatest benefi t is that the
capital requirement to operate in a market is signifi cantly reduced. The Web also minimizes
market imperfection and facilitates a larger number of players to compete in cyberspace.
The Internet means lower distribution costs, larger market share and higher revenues (Law
2001). Hatton (2004) further argues that given the millions paid globally for commission,
pressures from consumers for lower prices and increasing demands for ROI from investors,
many seek to remove these payments. This argument identifi es the interplay between the
fi rm and the markets, where fi rms make strategic decisions that enhance profi t and consumer
behaviour leans towards greater value for money. The Internet offers an effective means of
