Entrepreneurs adoption of information system innovation: The impact of individual perception and exogenous factors on entrepreneurs behavior

The purpose of this paper is to explore technology acceptance and use behavior of IS innovations by entrepreneurs. To measure the perception of IS innovations by entrepreneurs the authors review unified theory of acceptance and use of technology and the entrepreneurial potential model, empirically compare the two models, develop a new model that integrates elements from the two models, and then empirically validate the new model (technology adoption decision and use (TADU)) in a technology acceptance context.

The data used to test the hypothesis are collected from 1,200 entrepreneurs in Malaysia. The research model was analyzed using structural equation modeling.

The results indicate that perceived desirability and perceived feasibility have significant effects on entrepreneurs’ intention to adopt and use innovations. Propensity to use is an important factor that has a significant effect on individual behavior. The precipitating events that happen in the time lag between intention and behavior will disrupt entrepreneurs’ inertia and induce a change in their behavior, encouraging them to seek the best opportunity available.

Understanding the individual, technological, and environmental factors that significantly affect IT adoption behavior can support policy makers in providing guidance on the adoption and usage of IT innovations by entrepreneurs.

This study proposes a TADU model with six core determinants of intention and usage – perceived desirability, perceived feasibility, performance expectancy, effort expectancy, social influence and facilitating conditions and two new moderators, precipitating events and the propensity to act.