Critical Success Factors of Mobile Commerce Adoption: A Study Based on the System Life Cycle and Diamond Model

Transcription

1 2009 Eighth International Conference on Mobile Business Critical Success Factors of Mobile Commerce Adoption: A Study Based on the System Life Cycle and Diamond Model She-I Chang actsic@ccu.edu.tw Tien-Cheng Peng jack@durq.com.tw Yu-Chung Hung hung6599@ms3.hinet.net I-Cheng Chang changbenson@yahoo.com.tw Wei-Hsi Hung fhung@mis.ccu.edu.tw Abstract This research aims to identify the critical successful factors of mobile commerce (m-commerce) adoption in each stage of the system life cycle and to further build a reference model for businesses consultation towards a successful m- commerce adoption. We initially identified 21 critical factors based on Gowin s Vee [3] conceptual learning framework and the grounded theory method. These factors are further arranged into a model developed from combining the four aspects in Leavitt s [8] diamond model and the six stages in Sathish et al s [17] system life cycle. A Delphi questionnaire and a case study are used to revise the model and verify the its applicability, respectively. The results of this study have found more factors from the top 10 critical success factors categorized as Technology and Task aspects. Furthermore, the top three important factors for m-commerce adoption are the support capabilities of the IT vendor, senior management support, and capabilities of the project team. Keywords-Mobile commerce, Diamond model, System life cycle I. INTRODUCTION In recent years, there has been an increasing demand from domestic and foreign companies and employees for mobile commerce (m-commerce) application, and electronic commerce (e-commerce) has become the new trend for companies to upgrade their competitiveness [5,14] indicated that m-commerce is based on the sales channels in the Internet, and it is more immediate and customized. The business opportunity in wireless characteristics has turned into additional value for those hard-to-reach customers in the past, significantly reforming the business world. M-commerce leads to various profits. However, will domestic companies intention to adopt m-commerce increase because of these expected profits? What are the critical factors of success which influence corporate adoption? With regard to the introduction of m-commerce, Song et al. [20] suggested that the service industry of m- commerce tends to focus on the view of technology with respect to system construction and investment strategy, and neglect the importance of customer orientation and other factors in customer purchase. Thus, many related projects have failed. Companies should avoid blindly investing in information technology. When adopting m-commerce, companies and system suppliers must recognize the critical success factors and classify the adoption factors to probe into the critical success factors at the different stages of the system life cycle in order to reduce the wasting of corporate resources. However, there is a lack of academic literature on the influence of m-commerce on corporate management. Thus, this study discusses the application and development of m- commerce according to the current m-commerce adoption in Taiwan, and the related factors that function as the criteria for practice and the academe. The research purposes are as follows. First, to discuss the critical success factors at the different stages of the life cycle of m-commerce and classify these critical success factors upon Leavitt s diamond model. Next, to generalize the importance of the critical success factors at the various stages of the m-commerce system life cycle and the constructs of Leavitt's diamond model to enhance corporate resources. Finally, to construct the criterion model /09 $ IEEE DOI /ICMB

2 of the critical success factors of m-commerce adoption in companies II. LITERATURE REVIEW A. M-commerce and the critical success factors of the introduction M-commerce is a new concept and application. According to this study, m-commerce allows users to use wireless devices anytime and anywhere upon actual application. The users can finish the transaction or any information exchange through a corporate network system [9]. Rockart [16] defined the critical success factors as some specific factors in the organization, and they are the keys of the success of the organization. When these factors are not fulfilled, the organization would fail or even lead to serious consequences. Shank et al. [19] indicated that the critical success factors of information system construction can be applied to measure the result of information management system. Liang and Wei [10] suggested that m-commerce s success is related to the capacity of wireless technology as well as the corporate operation of the technology. Companies must recognize the critical success factors of m-commerce to develop the related measures and strategies to successfully introduce m-commerce. Past studies [15,21] have probed into the critical success factors of information system introduction and have found that experience, resources, and the technology base of the corporate introduction of the information system can positively influence new information technology. Mueller- Veerse [13] suggested that the mobile characteristic of m- commerce is different from the traditional e-commerce. Thus, the critical success factors of m-commerce include customized services and offering of services and business anytime and anywhere by location identification. Keen and Mackintosh [4] suggested that the services of m-commerce that involve customer value and customer orientation tend to be successful. The research findings of Xu and Gutierrez [22] and Bhatti [1] indicated four critical factors of m-commerce introduction: (1) convenience: the access to the right services from any place and at any time; (2) ease of use: easy operation and flexible service; (3) ubiquity: access to immediate information from any place; and (4) trust: developing and gaining the customers trust. Although the above research findings are related to m-commerce introduction and indicated some practical suggestions, there is still a lack of systematic and overall analysis of the critical success factors of introduction. B. Information system life cycle Lorenzo et al. [11] questioned the ERP introduction model proposed by Kwon and Zmud [7] and suggested that in the application to other Enterprise Systems the division of these steps was not significant and complete. In addition, the steps of the model proceeded forward. Sathish et al. [17] combined and modified Markus and Tanis model [12] and the ASAP model, and proposed the Six-Step ES Project Life Cycle Model (Project preparation, Business blueprint, Realization, Final preparation, Go live and support, After realization). C. Leavitt's diamond model Leavitt [8] proposed the diamond model to elaborate the impacts on the internal aspects of companies which have introduced a new system and implemented a reform. The model indicates that organizations have four constructs: Task, Agent, Technology, and Organization. Other scholars also reached the same conclusion. Leavitt s diamond model framework is generally accepted in organization theory [18] and significantly recognized in the studies on information systems [2]. III. RESEARCH METHOD AND DESIGN This study constructed the research process (Figure 1) through Gowin's Vee framework [3] to produce theoretically and methodologically supported findings. Thus, this study intends to systematically generalize and analyze the literature related to the theory and concept of the grounded theory, and construct a prototype of the model of critical success factors of corporate m-commerce adoption to respond to the research questions. After constructing the prototype, this study validates and modifies the prototype through a Delphi questionnaire and a case study to enhance the feasibility of the model of critical success factors of corporate m- commerce adoption and suggest the theoretically and methodologically supported findings. The process also meets the condition of the Vee framework in that the research aims to search for knowledge in the world instead of simply reviewing past knowledge. IV. Figure 1. Research process CONSTRUCTION OF THE CORPORATE M-COMMERCE ADOPTION MODEL A. Practice and result of the grounded theory Before applying the grounded theory, this study conducted a literature review sourced from English and Chinese periodicals published from 1999 to As this study aims to discuss the critical success factors of 127

3 corporate m-commerce adoption, it searched in English literature through the topic or abstract key words Mobile Commerce, M-commerce, and Adoption Factor in the ProQuest and SDOS databases. With regard to Chinese literature, key words such as m-commerce and adoption factors were searched in the tronic Theses and Dissertations System and the National Central Library databases. A total of 23 qualified literature was collected, and the adoption factors found in these literature were encoded. First, open coding was conducted on the content in the related literature. After analyzing, examining, comparing, conceptualizing, and dividing the related adoption factors, the 164 conceptual results were reorganized into 21 critical factors of m-commerce adoption. Finally, during the implementation of axial coding, this study treated the Task, Agent, Technology, and Organization of the diamond model proposed by Leavitt [8] as the constructs of axial coding. After analysis and generalization, it was found that these 21 critical factors could be further divided in four constructs where A is the critical factors allocated in Task; B is the critical factors allocated in Agent; C is the critical factors allocated in Organization; and D is the critical factors allocated in Technology. B. Practice result of the Delphi questionnaire The Delphi questionnaire was based on the grounded theory and literature review. In accordance with the grounded theory, this study generalized four constructs and 21 factors of corporate m-commerce adoption. It thus designed a Delphi questionnaire with 21 factors of axial coding. Referring to the six-step life cycle of Sathish et al. [17], this study developed the adoption factors of the life cycles of different constructs. A Likert five-point scale was used to measure the importance of m-commerce introduction to the companies, from 1 (very unimportant) to 5 (very important). The expert questionnaires were distributed to the following targets: (1) those renowned or have served in the information management-related fields for many years and (2) those who have undertaken important positions in ERP or m-commerce system introduction projects. There were 36 experts selected and two rounds of Delphi questionnaire survey conducted; 28 targets responded in the first round, while 26 experts responded in the second round. Initially, this study analyzed the 26 experts opinions, with the ranking of the critical factors valued in the different stages of the system life cycle. Next, the four constructs of Leavitt s diamond model, which are Task, Agent, Organization, and Technology, were added to probe into the different stages in the life cycle of the constructs and adoption factors valued by the experts. For instance, with regard to A5: project team ability of Task, the order of the importance in the different stages of the system life cycle is as follows: realization, project preparation, business blueprint, final preparation, go live and support, and after realization. Wit regard to Task, the experts value of adoption factors (codes) is in the order of A5, A6, A3, A2, A4, and A1. Finally, this study obtained the important factors of the different stages of the system life cycle. This study constructed the model of critical success factors of corporate m-commerce adoption. The model only involves the critical adoption factors with average scores over four as shown in Figure 2. Figure 2. Original model of the factors of corporate m-commerce adoption V. CASES OF CORPORATE ADOPTION OF M-COMMERCE MODELS A. About the case company The case companies include one system supplier and one listing company in Taiwan, which have successfully introduced or are adopting m-commerce for the past year. The former is called the system supplier, while the latter is called the system user. The supplier is an m-commerce system supplier which plans the users m-commerce introduction. On the other hand, the system user is an automobile manufacturer in Taiwan which collaborates with Chunghua Telecom on the m-commerce introduction. The system supplier was founded in 1982 and became listed in In 2007, its capital reached $1.2 billion NTD, and it employs 1,156 personnel. Working with the service principles of speed, value, and innovation, it has accumulated a service experience of over 20 years, served over 16,000 companies online, and developed unique and professional service know-how. The second business focus of the system supplier is in pharmaceutical, manufacturing, and logistics industries. It collaborates with imobile Mind Company, which has a successful m-experience in the market, to develop the original system supplier s end-users of the ERP and introduce its m-objectives with the lowest budget and fastest speed for its customers. It has surpassed a traditional project development method that is timeconsuming and involves high cost, and has introduced more competitive solutions to the market. The system user was established in 1953 and became listed in Its capital reached $14.4 billion NTD in 2007, and it employs 1,737 personnel. Its operational principle is 128

4 being the pioneer of automobile e-value chain in the Chinese market. The company has realized that the consumers purchase of cars is not their ultimate goal, but it is being mobilized; thus, if the system user could integrate mobile tools, processes, and purposes, then it could result in market differentiation in terms of strategy and management. Thus, the company aims to combine mobile processes, purposes, and tools into a mobile value chain, which is their vision. The mobile introduction of the company is in response to business expansion and remote work of the employees. In order to allow the employees to effectively access real-time information by m-equipment, scheduled arrangements and significant policy promotions have become the important objectives of the management team. The introduction aims to construct a platform that allows the employees to access , calendar, agenda, and information update, send and renew agenda, and approve forms through mobile phones. B. Result of the case interview Q1: What are the difficulties you encounter in the different stages of the m-commerce life cycle? What is your solution? What are the critical success factors in the different stages? (The following description is reorganized based on the respondents narration.) Project preparation: According to the system supplier, the critical success factors are the senior management s support and commitment and precision in the Task objectives. On the other hand, the system user reveals that the difficulties are technology capacity and integration ability of the information system, and the critical success factors are the senior management s support and commitment, precision in the Task objectives, and the information companies support ability. Business blueprint: According to the system supplier, the critical success factors are the senior management s support and commitment, target communication among the departments, and precision in the Task goals. On the other hand, the system user specifies that the order of the importance of critical success factors is the legitimacy of test process, precision in the Task goals, introduction cost, and reinvention and reform of the corporate process. Realization: According to the system supplier, the difficulty in this stage is the uncertainty in customization demand. Thus, the demand should be confirmed by the manager of the project. The consultant establishes the precise specifications for the manager for further confirmation. The critical success factors are ease of use and the users educational training. Moreover, one critical factor should be included: the duration of system test time. On the other hand, the system user reveals that the obstacle in this stage is that the picture display may not satisfy the supervisors (The dpi of the computer display is 1024*768, and the PDA is 200*200. It can be solved by using a template). Another difficulty is the insufficient system efficiency. The solution is to examine the legitimacy of the program and increase system efficacy. The critical success factors are ease of use and the information companies support ability. Final preparation: According to the system supplier, the critical success factors are the information companies support ability, duration of system test, project team ability, transmission quality, and the users educational training. On the other hand, the system user indicates that in this stage, the difficulty is the change of the users demands. When the change is reasonable, the system supplier will measure the complexity, declare the price, and confirm with the users. The critical success factors in this stage are ease of use and the users educational training. Go live and support: According to the system supplier, the difficulty in this stage is that the employees may totally recognize the system. Thus, regular meetings and the information companies support speed are required to solve the problem. The critical success factors are the employees identification, understanding, and acceptance of the system demand and the information companies support ability. On the other hand, the system user indicates that the difficulty is that the users cannot accept the operation of the m- equipment. Thus, the operational convenience in this stage should be enhanced. The critical success factors are the employees identification, understanding, and acceptance of the system demand and the users educational training. After realization: According to the system supplier, the difficulty is the personnel flow; thus, an educational training plan and the users SOP should be constructed. The critical success factors are information safety, transmission quality, the employees identification, understanding, and acceptance of the system demand, the information companies support ability, information safety, and duration of the test. On the other hand, the system user indicates that the obstacle is the integration of new and old systems after the introduction of a new technology. The solution is to look for new suppliers for the test. The order of the importance of critical success factors is the managerial personnel s familiarity with the system and the employees identification, understanding, and acceptance of the system demand. Q2: Generally speaking, how do you feel about the model of critical success factors of corporate m-commerce adoption constructed in this study? What is your suggestion? What are the aspects for further improvement? According to the system supplier and system user, the model of critical success factors of corporate m-commerce adoption constructed in this study is feasible and that the interview may be included in the scope of critical success factors. However, the system user thought that some of the critical factors might not be suitable for small-scale projects. Based on the case interview and the targets suggestion, this study included one critical factor ( Y1: managerial personnel s familiarity with the system ) in the realization Agent stage in the original model. In the modified model, there are now 13 critical factors in project preparation, 11 in business blueprint, 15 in realization, 9 in final preparation, 6 in go live and support, and 6 in after realization. The final adoption model of critical success factors is shown in Figure

5 Figure 3. Model of critical success factors of corporate m-commerce adoption VI. CONCLUSIONS Currently, more and more m-commerce-related studies and application have emerged; however, there is still a lack in research on critical success factors of m-commerce adoption, particularly the factors in the different stages in the life cycle. The model constructed in this study, according to the case interview, can meet the demand of the companies and thus enhance the m-commerce introduction of the system suppliers or users. In terms of academic research, the findings of this study can serve as the criteria for the academe on the critical success factors of the different stages of m-commerce in business. Future studies can compare the bases and directions of various information technologies using the model. In terms of practice, when the m-commerce system is gradually valued, the critical success factors of the different stages of the system life cycle constructed can serve as the criteria of the projects. Thus, without additional waste and costs, companies can invest in projects with more critical factors and enhance the success of system introduction, thus further increasing their overall competitiveness. Moreover, the companies can plan future m-commerce introduction according to the model proposed by this study. With the validation by the diamond model and project life cycle, companies can systematically analyze the introduction bases of the different constructs. The system suppliers and consulting companies can properly assist with the introduction with regard to the different stages of the life cycle. REFERENCES [1] T. Bhatti, Exploring Factors Influencing the Adoption of Mobile Commerce, Journal of Internet Banking & Commerce, 2007, pp [2] R. P. Bostrom and J. S. Heinen, MIS Problems and Failures: A Socio-Technical Perspective, MIS Quarterly, 1977, pp [3] B. Gowin, Educating. Ithaca: Cornell University, [4] P. Keen and R. Mackintosh, The Freedom Economy: Gaining the M- commerce Edge in the Era of the Wireless Internet, Osborne/McGraw-Hill Publication, Berkeley, CA, [5] S. Kumar and J. Stokkeland, Evolution of GPS technology and its subsequent use in commercial market, International Journal of Mobile Communications, 2003, pp [6] O. B. Kwon and N. Sedeh, Applying case based reasoning and multi-agent intelligent system to context-aware comparative shopping, Decision Support Systems, 2004, pp [7] T. H. Kwon and R. W. Zmud, Unifying the fragmented models of information system s implementation, John Wiley, New York, [8] H. J. Leavitt, Managerial Psychology. The University of Chicago Press, Ltd, Chicago, [9] C. C. Lee, H. K. Cheng, and H. H. Cheng, An empirical study of mobile commerce in insurance industry: Task technology fit and individual differences, Decision Support Systems, 2007, pp [10] T. P. Liang and C. P. Wei, Introduction to the special issue: Mobile commerce applications, International Journal of Electronic Commerce, 2004, pp [11] O. Lorenzo, P. Kawalek, and B. Ramdani, The Diffusion of Enterprise Systems Within Organizations: A Social Learning Theory Perspective. In 16th European Conference on Information Systems, [12] M. L. Markus and C. Tanis, The Enterprise Systems Experience from Adoption to Success, in: R.W. Zmud, M.F. Price (Eds.), Framing the Domains of IT Management: Projecting the Future Through the Past, Pinnaflex Educational Resources Inc., Ohio, [13] F. Mueller-Veerse, Mobile Commerce Report, Durlacher Research Ltd., London, 2000 [14] E. W. T. Nagi and A. Gunasekaran, A Review for Mobile Commerce Research and applications, Decision Support Systems, 2007, pp [15] G. Premkumar and M. Roberts, Adoption of New Information Technologies in Rural Small Businesses, Omega International Journal of Management Science, 1999, pp [16] J. F. Rockart, Chief executives define their own data needs, Harvard Business Review, 1979, pp [17] S. Sathish, S. Pan, and K. Raman, Using Stakeholder Theory to Analyze knowledge Sharing During Enterprise Systems Implementations, Pacific Asia Conference on Information Systems (PACIS), [18] W. R. Scott, Organizations: Rational, natural, and open systems. Prentice-Hall, Englewood Cliffs, [19] E. M. Shank, C. A. Boynton, and W. R. Zmud, Critical Success Factor Analysis as a Methodology for MIS Planning, MIS Quarterly, 1985, pp [20] J. Song, C. Koo, and Y. Kim, Investigating Antecedents of Behavioral Intentions in Mobile Commerce, Journal of Internet Commerce, 2007, pp [21] J.Y.L Thong, An Integrated Model of Information Systems Adoption in Small Businesses, Journal of Management Information Systems, 1999, pp [22] G. Xu and J.A. Gutierrez, An Exploratory study of Killer Applications and Critical Success Factors in m-commerce, Journal of Electronic Commerce in Organizations, 2006, pp