Web Adoption and Implementation

MEASURING THE EXTENT TO WHICH JORDANIAN

ORGANIZATIONS IMPLEMENT WEB-TECHNOLOGIES IN

THE CONTEXT OF DIFFUSION OF INNOVATION THEORY

‫ﻗﯿﺎس درﺟﺔ ﺗﻄﺒﯿﻖ اﻟﻤﻨﻈﻤﺎت اﻷردﻧﯿﺔ ﻟﺘﻜﻨﻮﻟﻮﺟﯿﺎ اﻟﻮﯾﺐ ﻓﻲ إﻃﺎر ﻧﻈﺮﯾﺔ اﻧﺘﺸﺎر اﻻﺑﺘﻜﺎر‬

By

Assaf Radwan Al-Rousan

Supervisor

Dr. Emad Abu Shanab

Program
Master of Business Administration
Faculty of Economic & Administrative Sciences
Yarmouk University

2010

ACKNOWLEDGMENTS

There are several people I would like to give my sincere gratitude and appreciation; First

and foremost I would like to thank my supervisor “Dr. Emad Abu Shanab”, without his

assistance, examples and instructions, this thesis would never have been completed. Further

I would like to thank the other members of my committee "Dr. Fuad Najib Al-Shaikh", "Dr.

Abdelfattah Karasneh", and "Dr. Raed Ababneh" for giving their valuable time and

knowledge.

I would like to extend my special thanks to my parents who taught me the value of

education and for their understanding and support through out my whole life. I would also

like to thank my little brother, Mohammad, for his help during data collection and all the

process. Finally, I would like to thank my wife, Saba, for her unconditional support,

patience, encouragement, and love.

ii

TABLE OF CONTENTS

Page

Chapter 1. GENERAL FRAMEWORK OF THE STUDY..........................................1

1.1 Introduction........................................................................................................1
1.2 Research Problem ..............................................................................................4
1.3 Research Objectives...........................................................................................5
1.4 Contributions of The Research ..........................................................................6
1.5 Definitions of Key Terms ..................................................................................7
1.6 Structure of The Thesis......................................................................................9

Chapter 2. REVIEW OF LITERATURE ....................................................................11

2.1 Classifications of Websites..............................................................................11
2.2 The Adoption of Website Technology.............................................................15
2.2.1 Organizational Adoption of Website Technology ..................................18
2.3 Website Implementation ..................................................................................29
2.3.1 Effective Website Implementation .........................................................33

Chapter 3. RESEARCH MODEL AND HYPOTHESES ..........................................42

3.1 Perceived Internal Factors ...............................................................................45
3.2 Perceived External Factors ..............................................................................47
3.3 Implementation and Sustainable Web Adoption .............................................49
3.4 Chapter Summary ............................................................................................55

Chapter 4. METHODOLOGY....................................................................................56

4.1 Research Design ..............................................................................................56
4.2 Research Approach ..........................................................................................57
4.3 Research Instrument ........................................................................................58
4.3.1 Adopter Survey .......................................................................................58
4.3.2 Non Adopter Survey ...............................................................................60
4.4 Data Collection ................................................................................................63
4.5 Sampling and Target Population......................................................................66
4.6 Statistical Analysis...........................................................................................68
4.6.1 Reliability and Validity...........................................................................69
4.6.2 Reliability................................................................................................69
4.6.3 Assessing Validity ..................................................................................70
4.7 Chapter Summery ..................................................................................................75

Chapter 5. DATA ANALYSIS...................................................................................76

5.1 Demographic and Descriptive Statistics ..........................................................76

iii

2 Hypotheses Testing..........................................................................................79
5.2.1 Perceived Factors and Implementation Strategies .................................83
5.2.2 Implementation Strategies and Length of Web Presence .......................86
5.2.3 Perceived Factors and Length of Web Presence.....................................88
5.3 Web Implementation Strategies.......................................................................92
5.4 Web Adoption Reasons and Uses....................................................................98
5.5 Perception of Corporate Website...................................................................101
5.5.1 Post Adoption Perspective: PIF ...........................................................101
5.5.2 Post Adoption Perspective: PEF ..........................................................106
5.5.3 Difference in Perception of Corporate Website ...................................110
5.6 Chapter Summary ..........................................................................................112

Chapter 6. DISCUSSION AND CONCLUSION....................................................113

6.1 Discussion......................................................................................................113
6.1.1 The Influence of Implementation of Corporate Web Strategies..........114
6.1.2 Corporate Website Sustainability ........................................................117
6.1.3 Employed Implementation Strategies..................................................122
6.1.4 Perception of Corporate Website.........................................................124
6.2 Limitations .....................................................................................................126
6.3 Theoretical Contributions ..............................................................................127
6.4 Practical Implications ....................................................................................128
6.5 Future Research .............................................................................................130

REFERENCES ..........................................................................................................131

APPENDICES ...........................................................................................................137
Appendix A: Non-Adopter Survey ......................................................................137
Appendix A: Adopter Survey ..............................................................................140
Appendix B: Screen Shot of the Online Survey ..................................................145
Appendix C: Summary in Arabic ........................................................................149

iv

LIST OF TABLES

Table Page

3.1 Research Hypotheses ................................................................................................54
4.1 Items Development ...................................................................................................61
4.2 Industry classification according to the labor size in Jordan ....................................67
4.3 Chronbach's Alpha reliability value for the research constructs and sub
Constructs ................................................................................................................70
4.4 Factor analysis for the perceived internal factors dimension ...................................71
4.5 Factor analysis for the perceived external factors dimension...................................73
4.6 Factor analysis for the implementation strategies dimension...................................74
5.1 Demographic profile for respondent's.......................................................................77
5.2 Companies profile.....................................................................................................78
5.3 Correlation Matrix: Perceived factor and dependent variables ................................80
5.4 Correlation Matrix: Implementation strategies and length of Web presence ...........80
5.5 Regression Analysis..................................................................................................81
5.6 Summary of Hypotheses Testing.........................................................…………. ...91
5.7 Level, mean, and standard deviation, for respondent's answers concerning
attraction strategies...................................................................................................92
engage strategies…..…………………………………………………………..…..93
retain strategies................................................................................................…....94
learning strategies......…………………………………………………………..…95
relate strategies…...……………………………………………………………..…96
5.12 Reasons for adopting corporate Website…………….…...……………………….98
5.13 Current uses of corporate Website......………………………………………….…99
financial readiness.................................................................................................101
5.15 Level, mean, and standard deviation, for respondent's answers concerning IT
readiness................................................................................................................102
5.16 Frequency, mean, and standard deviation, for respondent's answers concerning
relative advantages...............................................................................................103
compatibility .........................................................................................................104
ease of use.............................................................................................................105
observability...........................................................................................................106
Tele- communication Infrastructure ....................................................................106
government regulations.......................................................................................107

v

competitor pressure..............................................................................................108
suppliers pressure..................................................................................................105
5.24 T-value, mean, and standard deviation, for respondent's answers concerning
corporate Web.......................................................................................................111

vi

LIST OF FIGURES

Figure Page

1.1 Structure of the Theses.....…………………………………………………………… .10
2.1 Adopter Categorization on the Basis of Relative Time of Adoption of Innovations ....16
3.1 The research model on the determinants of Web sustainability in organization………43
5.1 The relationship of independent variables with dependent variables for the
research hypotheses in the research model ……….………………………………..…82

vii

MEASURING THE EXTENT TO WHICH JORDANIAN ORGANIZATIONS IMPLEMENT

WEB-TECHNOLOGIES IN THE CONTEXT OF DIFFUSION OF INNOVATION THEORY

‫ﻗﯿﺎس درﺟﺔ ﺗﻄﺒﯿﻖ اﻟﻤﻨﻈﻤﺎت اﻷردﻧﯿﺔ ﻟﺘﻜﻨﻮﻟﻮﺟﯿﺎ اﻟﻮﯾﺐ ﻓﻲ إﻃﺎر ﻧﻈﺮﯾﺔ اﻧﺘﺸﺎر اﻻﺑﺘﻜﺎر‬

By

Assaf Radwan Al-Rousan

Supervisor

Dr. Emad Abu Shanab

ABSTRACT

In the last twenty years, organizations started to have their own Web presence, where they

implemented different online strategies in order to sustain the advantages generated from

their adoption decision. Also it is important for these organizations to identify the factors

that affect their choices of Web strategies and how they affect the length of corporate “Web

presence”. This study utilized the Diffusion of Innovation Theory (DOI), Technology

Acceptance Model (TAM) and the Digital Marketing Model (DMM) and proposes a model

to examine the impact of perceived internal and external factors (Information Technology

readiness, financial readiness, managerial logic, telecom infrastructure, government

support, competitors pressure and supplier pressure) on the effective implementation

strategies employed by organizations and how they affect Web sustainability. Also,

examine the impact of implementation strategies (Attract, Engage, Retain, Learn, and

Relate) on the sustainability of corporate Website's. The overall aim of this study is to

explore Jordanian organization members perceptions, use and implementation of a

corporate Website, and how that influences sustainable adoption, by Identify the factors

influencing the implementation of corporate Web strategies in Jordanian organizations,

investigate the corporate Web implementation strategies employed by Jordanian

organizations, identify whether Web implementation strategies can explain variance in

sustaining corporate Website in Jordanian organizations and examine whether differences

exist in perception of corporate Website between adopter and non-adopter organizations.

The proposed research model was empirically tested using data collected from 151

organizational responses from Jordan; 32 from non-adopting organizations, and 112 from

adopting organization, and using a Web-based survey. Results indicated that almost all

perceived adoption factors, except Information Technology (IT) readiness and strategic

advantages, have a significant effect on Web implementation strategies. Furthermore, IT

readiness, strategic advantages, ease of use, telecom infrastructure, and perceived external

pressure from suppliers and competitors, were found to be significant to Web sustainability.

In addition, only retain strategy have a positive significant effect on Web sustainability

while attraction strategy have a negative effect, and other strategies were found to be

insignificant.

Keywords: Web strategy, Web sustainability, Diffusion of innovation, Web implementation,

web adoption, Jordan, Jordanian organizations.

ix

CHAPTER ONE

GENERAL FRAMEWORK OF THE STUDY

The World Wide Web (WWW) has become one of the most widely used information

technologies (Alrawi, 2007). There are three primary reasons beyond the high desire and

intention of most businesses and organizations to use Web technologies: First the high

popularity of the technology among potential customers; Second, the relativity low

investment requirements; Third, the purported benefits that can be derived (Nambisan &

Wang, 1999). The establishment of a Website or increasing Website sophistication can signal

the intention to adopt e-commerce, even so there is a need to clearly distinguish between the

use of the Internet as a marketing communication tool (Website) or as a transaction and

distribution channel (i.e. e-commerce). The differentiation between different types of

adoption is essential since the Internet is a combination of innovations (Houghton &

Winklhofer, 2004). By expanding the diffusion of innovation model this research will propos

a model to examine the impact of effective implementation strategies (Attract, Engage,

Retain, Learn, and Relate) on the sustainability of corporate Website's. In this chapter, the

researcher will present the background of the study by reviewing the relevant literature on

the Internet and the World Wide Web. Next, the research problem, research objective, and

contributions of the research are presented as well as the thesis structure.

1.1 Introduction

Internet is physically a network of computer networks, but beyond this, the Internet is

conceptually a new and highly efficient way of accessing, organizing and sharing

information (Ainscough & Luckett, 1996). Internet, which was based on the UNIX operating

1

system; is a system designed for efficiency not for user friendliness, were users need to learn

complex computer commands as well as dealing with complex interface, not to mention the

high financial cost to operate. All of these aspects limited the use of Internet by scientists and

academics within governmental entities, and educational institutions. But every thing has

been changed by "Sir Tim Burners Lee" and his creation and introduction of the World Wide

Web.

The World Wide Web is a relatively new Internet service based on hyperlinks. A

hyperlink enables users to navigate the Internet using a point and click interface similar to

these used on Macintosh and Windows-based computer systems (Ainscough, & Luckett,

1996). This interface, which is called a browser (i.e. Firefox & Internet Explorer) eliminates

the need to learn computer commands; the World Wide Web browser's by itself translates

user's clicks on the topics of interest to computer commands. Thus, on the Internet, users find

computer networks were the connections are cables between computers while on the Web

users find documents, sounds, videos, and information were on the connections are hypertext

links. As a result, the World Wide Web exists because of programs which communicate

between computers on the Internet (Tim Lee, 2009).

While in the business context the Web and the Internet are defining features of

contemporary ‘networked’ society, and are increasingly being incorporated into

organizations, shaping organizational boundaries, communication, public relations, and

customer behavior. As a result, employees, customers and stakeholders are increasingly

interfacing with organizations through Websites, that serve as a point of access to

information from diverse sources, as well as to access to interactive functions such as

discussion forums, surveys, search engines, online purchasing, registration options, and

‘guest books’ for user feedback (Pablo & Hardy, 2009). Further more, if a Website is built on

2

an e-commerce platform technology, its interface ultimately can enable virtually any type of

ordering by customers, as well as, facilitating other parts of the shopping, selecting and

purchasing processes (Adham & Ahmad, 2005).

The revolution of the Internet and the World Wide Web produced many terms in the

business context (i.e. e-business & e-commerce). Kalakota & Marcia (1999) defined e-

business as the function of deploying technology to maximize customer's value. Also, they

defined e-commerce as the function of creating exchange (e.g. buying and selling) over

digital media. While Alrawi (2007) defined e-commerce as "The application of

communication and information sharing tools, among trading partners to the pursuit of

business objectives" (p.226). Thus, a strong businesses network can be established and

partnerships can be developed from linkages in the distribution channel using electronic

commerce, which can be facilitated by Website adoption (Simmons, Armstrong, & Durkin,

2008).

E-commerce in its early stages was adopted to support business to consumer (B2C)

information flows and simple transaction. E-commerce now enables consumers to read and

listen to national and international news, purchase products, make investments, apply for

loans, and engage in countless other information and entertainment related activities. E-

commerce, which began as a vehicle for browsing the Web and buying books or CDs, has

been transformed into a platform that has changed how organizations and customers do

business (Johanson-page & Thatcher, 2001). Thus, a Website that supports multiple functions

can be useful to virtually any business; at least a company can use a Website to publish its

corporate catalogues in cyberspace. A Website may also facilitate communication, both

among personnel within a company and between the company's personnel and its external

3

stakeholders. So it is not surprising that e-commerce is rapidly evolving toward the Internet

and the World Wide Web, that is, a more open infrastructure to communicate and transact

(Raymond, 2001). For that the enablers of e-commerce include the rapid adoption of the

Internet and the World Wide Web standards (Alrawi, 2007).

1.2 Research Problem

While many organizations have developed Websites; other are still considering

whether to establish a Web presence or not. Dubelaar, Shoal, and Savic (2005) mentioned

that there are a considerable number of cases indicating that creating the successful "dot

com" enterprise is a challenging task. This provided an important insight that organizations

have not yet discovered how to implement their Website effectively and efficiently (Poon &

Lau, 2006). Nambisan and Wang (1999) asserted that the large majority of organizations are

still using the Web primarily for information dissemination which is a first level of adoption,

as organizations may find it relatively easy to adopt the technology at level one, while

adoption at higher levels calls for tighter integration of the technology with the business

context and this may pose considerable knowledge barriers.

The Hashemite Kingdom of Jordan is providing a strong support for the diffusion of

the Internet, and in the purposes to enhance the e-government initiatives and develop the

information technology (IT) sector in Jordan, the government went through several steps

including the creation of the Ministry of Information and Communication Technology

(MoICT). According to the International Telecommunication Union (ITU, 2009); the

specialized United Nations agency for information and communication technology issues

located in Geneva-Switzerland and to the (Internet World Stats, 2009) the total number of the

4

Internet users in Jordan by the end of June, 2009 was 1,500,500 (23.9% of total population)

making a ten time user growth in the period of 2000-2009. On the other side of the debate,

Sahawneh (2003) addressed that e-commerce in Jordan could be considered as in the

beginning, and what is implemented is rather unsophisticated. Also, the e-commerce

experience considered as random, humble and dependent on the private initiatives. Also,

Kulchitsky (2004) asserted that by examining the history of the IT revolution in Jordan it can

be clear that many obstacles in Jordan are not just technical and behavioral but also

knowledge oriented. These raise the question whether Jordanian organizations know how to

implement the Web technology and to utilize from the Internet. To the researcher knowledge

no previous studies tried to develop a framework or a model to assess the organizations

ability to sustain their corporate Websites in Jordan. For that, this study focuses on the

effective Web implementation strategies, and aim to gain a deep understanding of the factors

influencing implementation of such strategies. Also, this study tries to develop a model

which enables Jordanian organizations to sustain their corporate Websites.

1.3 Research Objectives

The overall aim of this study is to explore Jordanian organization members

perceptions, use and implementation of a corporate Website, and how that influences

sustainable adoption. By expanding the diffusion of innovation model, this research proposes

a model to examine the impact of effective implementation strategies (Attract, Engage,

Retain, Learn, and Relate) on the sustainability of corporate Website's. Diffusion of

Innovation (DOI) model, Technology Acceptance Model (TAM), and Digital Marketing

Model (DMM), are the theoretical foundation in this research. The primary objectives of this

study are to:

5

1. Identify the factors influencing the implementation of corporate Web strategies in

Jordanian organizations.

2. Investigate the corporate Web implementation strategies employed by Jordanian

organizations.

3. Identify whether Web implementation strategies can explain variance in sustaining

corporate Website in Jordanian organizations.

4. Investigate the current websites uses by Jordanian organizations.

5. Investigate the perception of corporate Web adoption among members of adopter

organizations in Jordan

6. Examine whether differences exist in perception of corporate Website between adopter

and non-adopter organizations.

1.4 Contributions of The Research

This study makes both theoretical and practical contributions, in terms of theoretical

contributions, the study adds to the body of knowledge in the area of corporate Web adoption

and corporate Web implementation. The study presents a profile of Website usage within

Jordanian organizations, and sheds a light on the underlying factors behind their adoption

decisions, along with their perspective of the Web technology in the business context for

non-adopters and adopters organizations (pre and post adoption perspective). The study also

proposes a model to measure sustainability on Web adoption through effective Web

implementation.

On the practical contributions, the study proposes a framework that helps

organizations to implement their corporate Website effectively and sustain their adoption.

6

The study also provides basis strategies for organizations for better understanding into how

to implement, assess and increase the effectiveness of their corporate Website.

1.5 Definitions of Key Terms

To facilitate a better understanding of this study, several important terms are defined below.

Web adoption process: Web adoption process is defined as the mental process through

which an organizations passes from first hearing about a Web innovation to final adoption

decision.

Web adoption: Web adoption is defined as an organization decision to purchase, or design

and implements Web technology.

Web presence: Web presence is defined as the level that organizations have made their

adoption decision but the implementation is still in process, Websites at this stage provide

information and brochures and tend to be non-strategic in nature. (Teo & Pian, 2004)

Web implementation: Web implementation is defined as the requirement for aligning Web

technology with companies strategic planning, integrating it into existing operations, using it

to exploit new business opportunities and considering customers need and expectation when

designing the Website interface.

Web usability: Web usability is defined as making the design simple enough so that

customers, who by nature tend to be goal driven, can accomplish their task as quickly and

painlessly as possible (Pearson, Persons, & Green, 2007).

7

Sustainable Website: Sustainable Website is defined as an a website that will meet the

needs of organizations or businesses for years to come, provide a company with way to

publish new content, change navigation, keep it up to date, attractive, and doing what it is

supposed to do. Attract visitors who should know about organizations services, facilitates

online interaction or transaction among community whether they are customers, members, or

the general public. A sustainable Website allows growing by supporting new features,

information, and designs without expensive custom programming.

Diffusion of Innovation (DOI): DOI is a framework that aims to explain the social and

relational aspects of innovation diffusion and how this accurse over time in a social system

(Parker & Castleman, 2009)

Innovation diffusion process: defines as the spread of new ideas from its source of

invention or creators to its ultimate users or adopters Rogers (1995).

Innovation: Innovation is defined as an idea, practice or object that is perceived as new by

an individual or other unit of adoption (Rogers 1995).

Diffusion: Diffusion is defined as the process by which an innovation is communicated

through certain channels over time among the members of a social system (Rogers 1995).

Technology Acceptance Model (TAM): TAM is defined as an information system theory

that models how users come to accept and use technology. Presented by Davis (1989)

Perceived Usefulness (PU): Perceived usefulness is defined as the degree to which a person

believes that using a particular system would enhance his or her job performance

(Davis,1989).

8

Perceived Ease of Use (PEOU): Perceived ease of use is defined as the degree to which a

person believes that using a particular system would be free of effort (Davis,1989).

Digital Marketing Model (DMM): DMM is a model introduced by Kierzkowski et al.

(1996) built around five elements to get the opportunities of interactive media, each of the

five success factors suggests a number of issues that marketers must address in order to

success in digital arena.

1.6 Structure of The Thesis

This study is organized into six chapters as shown in figure (1.1). Chapter one

presents a background about the Internet and the World Wide Web. This chapter also

introduces the research problem, research objectives, and contributions of the research.

Chapter two provides a review of the relevant literature relating to the study area. The

key constructs discussed in this chapter are classifications of the Websites, and its adoption

stages among organizations, Web adoption and Web implementation; reviewing earlier

models of technology adoption (i.e. diffusion of innovation model), and criteria affect Web

effective implementation (i.e. Web usability and usefulness).

Chapter three proposes a research model, and research hypotheses developed based

on literature review. The proposed research model seeks to determine factors influences

sustainable adoption decisions of a corporate Website.

9

Chapter four presents the research methodology used in this study. a description of

the research instrument, sample selection, data collection, and statistical methods used for

data analysis are presented.

Chapter five reports the analysis of research data, and result of the hypotheses tests.

Chapter six summarizes the results of the hypotheses tests, discussing the

implications, presents contribution of the research. The limitations of the study are described

along with suggestions for future research.

Ch.1: General Framework of The Study

Ch.2: Review of Literature

Ch.3: Research Model & Hypotheses

Ch.4: Methodology

Ch.5: Data Analysis

Ch.6: Discussion and Conclusion

Figure 1.1: Structure of the thesis

10

CHAPTER TWO

REVIEW OF LITERATURE

This chapter provides a review of the relevant literature relating to the study focus. The key

constructs discussed in this chapter are classifications of the Websites, and its adoption

stages among organizations, Web adoption and Web implementation; reviewing earlier

models of technology adoption and criteria that affect Web effective implementation.

2.1 Classifications of Websites

Websites can be categorized according to technical measures of what is included in

them and how they function. These classifications are useful in capturing a picture of the

level of technology adoption in a given sample of companies at one point of time (Adham &

Ahmad, 2005). These measures namely are: Static and Dynamic Websites. A Static Websites

is also called a brochure Websites because it simply presents to the user pre-defined

information. This may include information about an organization and its products and

services via text, photos, and flash animations. Similar to handing out printed brochure to

customers, this type of Websites usually displays the same information to all visitors. Thus,

Static Website provides static information, a consistent standard content for an extended

period of time. While Dynamic Websites do not have Web-pages that will be viewed by the

user in the same form, instead, information and content displayed over the Web-pages will be

changed and updated dynamically or frequently based on certain logic; whether this logic is

predefined by the developer's Web-page code or based on users input and interactivity. Thus,

a Dynamic Website has the ability to present content information customized to a particular

11

user, and could also accept users input. Comparing with Static Websites this type of

Websites requires advanced programming and data base, and it often includes content

management system (CMS) for the Website's owner to update the content frequently, giving

the visitors the ability to manipulate the content of the Website in addition to control what

information they wish to view. While in the business context, Websites are classified

according to the purpose for which a Website may be used. Lynn, Lipp, Skgun, and Cortez

(2002) suggest that there are two fundamental company Websites, a corporate Website that

provides information about the organizations such as type of products, hours of operations,

shareholders information, etc. and the other is a marketing Website that allows organizations

to promote products and services, gather marketing research, exchange information about the

product and services, sell online and take orders.

There is no doubt that organizational adoption of Websites has been studied from a

variety of different perspectives. In particular, it has been suggested that adoption of

Websites follows a sequence of stages. These stage models imply that businesses move in

stages from the basic use of the Internet (as an e-mail tool), to more sophisticated usage

where greater business value will be accrued (Simmons et al., 2008).

Teo and Pian (2004) asserted that Internet technology maybe used in a different ways

by different firms with different features in their Websites, depending on the objectives of

Websites. Taking into account an organization's Internet strategy and its Website's functional

characteristics, they propose a model of Web adoption with five levels according to the

different business objectives of Websites. Level one "No Website only e-mail account", those

organizations do not have independent domain names and Websites, they normally have an

e-mail account that they use to establish connectivity with customers and business partners.

12

Level two "Web presence", at this level organizations have made their adoption decision but

the implementation is still in process, Websites at this stage provide information and

brochures and tend to be non-strategic in nature. Level three "Prospecting", this involves

limited use of the Internet. Usually Web adoption initiatives at this stage are spearheaded by

individual department and thus they are not tied to a business strategy. Most organizations at

this level establish Websites to provide customers with product information, news, events,

interactive content, personalized content, e-mail support, etc, this provides potential

customers with access to the organizations product with minimal distribution cost. Level four

"Business integration" at this stage there are a cross functional links between customers and

suppliers and Web strategy is integrated with the organization's business strategy. Level five

is "Business transaction" which is the highest level of Web adoption. The overall business

model throughout the organization will transform, where the focus is on building

relationships and seeking new business opportunities.

Kierzkowski, Mcquade, Waitman and Zeisser (1996) identified four key stages for

the development of the corporate Website: stage one is "Ad hoc activity" stage where in this

stage companies establish a basic online presence. However, there is no formal organization

dedicated to the effort, which is often led by self-selected individuals, and there are no

dedicated skills in place. Stage two is "Focusing the effort", in this stage the organization

recognizes the effort as a learning experiment. Typically a cross-functional steering

committee led by a senior executive develops a set of policies and principles for how the

company will "go digital." A small number of resources are dedicated to the digital effort,

although its reporting structure is still considered temporary. Stage three is the

"Formalization" stage, at this stage, organizations focus on improving its digital efforts. The

13

organization grows from 10 to 50 people and begins to develop its own structure, typically

separating the technology-related from the business-related digital activities. Stage four is the

"Institutionalizing capability" stage, this stage is characterized by the development within the

digital organization of dedicated experts and skills, often around technology platforms like

the World Wide Web, online services, and dial-up services, and the emergence of general

managers for the various initiatives that ensure the linkage with the core business.

King and Gribbins (2003) identified three levels of Website presence by

organizations; the first level is the "Relational Websites", and most commonly organizations

present it through informative Websites, and can involve the creation of a long-term

relationship with consumers by building customers loyalty and brand identity. The second

level is "Transactional Websites", these types of Internet presence exist when the

organizations Website is capable of accepting online purchases from customers. The third

level and the last type is a combination of both, which is relational in nature and applicable

and equipped for online transaction.

Wang and Nambisan (2000) identify the levels of Web technology adoption into

three levels: informational access, work collaboration and core business transaction. At the

lowest level, Web technology can be used as a tool for disseminating information about

products-services, corporate mission, organizational policies, and to channel feedback from

internal to external entities and vise versa (i.e. employees, customers, and investors). At the

next level, it can be used to facilitate real time work collaboration and documents flow

between different entities within the organization and with other entities outside the

organization. At the third and the highest level, Web technology can be directly integrated

with core business processes and transactions.

14

In summary, from these classifications within the business context it would appear

that informational Website is the simplest level of adoption, organizations aim through to

communicate and build relations among their customers, usually the form of communication

takes the shape of a one way communication where the customers are receivers with limited

interaction capability (i.e. establishing static corporate Website). While transactional Website

is the highest level of adoption where firms become more familiar and expertise with Web

technology and move toward integration between the core business and technology to

achieve organization goals (i.e. e-commerce).

2.2 The Adoption of Website Technology

Rogers (1995) Diffusion Of Innovation (DOI) model appeared to be one of the most

widely accepted models by researchers in identifying "perceived" critical characteristics for

innovation, in information systems researches, and technology adoption researches.

Rogers (1995) defines the innovation diffusion process as the spread of new ideas from its

source of invention or creators to its ultimate users or adopters. Innovation is "an idea,

practice or object that is perceived as new by an individual or other unit of adoption" (Rogers

1995, p.11). Diffusion is the "process by which an innovation is communicated through

certain channels over time among the members of a social system" (Rogers 1995, p. 5).

Rogers (1995) classified people into categories shown in figure (2.1), according to their

innovativeness; where individuals who are relatively earlier in adopting new ideas, than the

others members of their social system consider being more innovative. According to Rogers

people start to adopt the innovation slowly, and then increased number of adoption will

continue to reach a peak, after that it diminishes leaving few individuals as non-adopters.

Innovators are willing to try new ideas and venturesome. Early adopters are the opinion

15

leaders in their community and carefully adopt new ideas. The early majority adopt new

ideas before the average person and rarely seen as leaders. The late majority adopt an

innovation only after a majority of people have tried it. At the end come the laggards who

adopt the innovation only when it takes on a measure of tradition, and they are suspicious of

change.

Figure (2.1): Adopter Categorization on the Basis of Relative Time of Adoption of Innovations
presented by Rogers (1995). (Source: Diffusion of Innovations, Fourth Edition by Everett M. Rogers,
New York: free press, p.262)

The individual adoption process focuses on the mental process through which an individual

passes from first hearing about an innovation to final adoption (Kotler, 2000). Rogers (1995)

identified five important factors that influence the adoption decision: First is Relative

advantages: "the degree to which the innovation perceived as being better than its

precursor/supersedes". Second is Compatibility: "the degree to which an innovation is

perceived as being consistence with existing value, past experience and need". Third is

Complexity: "the degree to which an innovation perceived as being difficult to understand

and use". Fourth is Triability: "the degree to which an innovation can be tried and

experimental with a limited basis". Finally, Observability: "the degree to which the beneficial

results of use are observable and visible". Rogers (1995) addressed that innovation is more

likely to succeed and be more readily adopted if the relative advantages, as a consequence of

16

their introduction were evident; if they were compatible with the adopter's, operations and

their view of the world; if they were not too complex, and if there were trialable and could be

observed prior to adoption.

Based on these five characteristics of innovations derived by Rogers (1995) from the

diffusion of innovations literature, Moore and Banbasat (1991) developed an instrument

designed to measure the various perceptions that an individual may have of adopting an

information technology (IT) innovation. The final result included, 34-item instrument,

comprising seven scales, all with acceptable levels of reliability. This instrument can be used

to investigate how perceptions affect individual's actual use of information technology as

well as other innovations. The development process also helped to clarify and refine some of

the definitions. Rogers (1995) suggests that the Moore and Banbasat's instrument will be a

valuable tool for future research in the diffusion of technology innovations. Thus, the

variables measured by the Moore and Banbasat instrument were utilized in this present study.

The Technology Acceptance Model (TAM) presented by Davis (1989) has commonly

been used as the base for technology adoption research (King & Gribbins, 2003; Al-qirim,

2007). TAM is an information system theory that models how users come to accept and use

technology. The model suggests that when users are presented with a new technology, the set

of factors that influence their decisions about how and when they will use it are: Perceived

Usefulness (PU): "the degree to which a person believes that using a particular system would

enhance his or her job performance". And Perceived Ease of Use (PEOU): "the degree to

which a person believes that using a particular system would be free of effort". TAM2

(Venkatesh & Davis, 2000) extended TAM to explain how social influences (Subjective

Norm, Voluntariness, & Image) and cognitive instrumental processes (Job Relevance, Output

Quality, Results Demonstrability, & PEOU) affect PU and usage intentions.

17

2.2.1 The Organizational Adoption of Website Technology

Both (DOI) and (TAM) were developed to predict individual’s acceptance, but do not

address organizational attitude and action toward desired organizational goals. Technology

adoption decisions on the organizational level can have a wider implication, as they do not

only impact the decision makers usage of technology, but also it can impact business

processes, customers relation and other employees (King & Gribbins, 2003). These measures

of personal variables which were developed by both models may become irrelevant when

analyzing an organization's adoption process. Often, an organization decides to purchase, or

design and implement, an innovation, which can be considered "adoption" at the

organizational level. But that tells little about innovation decision processes of different

individuals within the organization, which can be considered "adoption" at the intra-

organizational level. Innovation adoption at the organization level is greatly diversified by

the interactions between the organization and individuals. Intra-organizational innovation

decision-making is not only subject to each individual's own will, but also influenced by

organizational context (Zhou, 2008).

Kotler (2000) addressed that the organizational factors that may influence the

adoption process are; organizational environment, the organization itself (Size, Profit, &

persistence to change) and the administrator's demographics (Educational level, Age,

Sophistication). Thus, identifying the best use of technology requires knowledge of not only

the technology itself but also knowledge of the organization in which the technology is

implemented in (Poon & Lau, 2006).

King and Gribbins (2003) in an exploratory study aimed to investigate Internet

adoption decision from an organizational perspective and the underlying strategies and

beliefs of key decision makers that are influencing the adoption decision. The study

18

investigates the technology adoption process for small and mid-sized organizations. As these

organizations typically have a single decision maker or relatively small number of employees

in the decision making role. Data were gathered during interviews with key personnel from

76 companies, the key personnel who were interviewed include CEOs, IT managers, or

general managers depending on their organizations structures. The study identifies eight

factors that may facilitate or inhabit technology adoption: characteristics of the technology,

organizations existing business model and paradigms, managerial logic, locus of control, the

availability of knowledgeable IT staff, organizational size, financial resources and pushes

from within the industry. The study found that top managers are not only bringing-in their

own perceptions to the Internet adoption decision but also that these perceptions are

distinctive to their decisions. The most predominant logic for adopting the technology is that

the Internet is just another form of advertising or promotion, can provide customer services,

and being pressured from competition to adopt. Moreover the study showed that availability

of knowledgeable IT staff can be a key determinant for organizations adoption decision.

While Nielsen (2008), argued on an empirical study aimed to illustrate how advanced

theories of change are useful in understanding the actual adoption of emergent Internet

technologies, that the key person's participation in the adoption decision is only weakly

associated with greater agreement, more congruent frames, and better outcomes. The

adoption and implementation of new Web technologies are issues that challenge existing

procedures.

Peltier, Schibrowsky, and Zhao (2009), in an exploratory study aimed to investigate

the factors that influence the adoption of Customer Relationship Management (CRM)

technology by small businesses. The study investigates the role of personal, organizational,

and environmental factors that play in decision-making processes within small firms.

19

Preliminary model was developed and tested the factors multidimensional impact on CRM

acceptance and adoption. The CRM model proposed in the study integrated three high level

theories of the diffusion of innovation; Rogers (2003) Diffusion of Innovation (DOI), Kwon

and Zmud (1987) identification of five variable categories that influence information system

adoption. Lastly, the Technology Acceptance Model (TAM) proposed by Davis (1989), and

extended by Venkatesh and Davis (2000). The model in the study focused on environmental

factors (Market uncertainty & Environmental complexity), technological characteristics

(Relative advantage & Switching costs), and owner/organizational characteristics (Product

class knowledge, Attitude toward change, Age, Education, Years in business, & Firm size).

The methods employed to test study hypotheses were from a data set of 386 small retailers in

the US hardware business by responding to mail questionnaires. Findings suggest that the

most important factors in adopting CRM technology are product class knowledge,

environmental hostility and uncertainty, business change orientation, and risk propensity.

The findings show that CRM adopters had higher product class knowledge, a greater risk

orientation, saw stronger relative advantages, perceived higher environmental complexity

and hostility, and had more open business change orientation.

Gamino, Mackay and Reich (2006) developed a model of Website adoption by small

and medium sized enterprises (SMEs) considering literature supporting e-commerce adoption

and electronic data interchange (EDI) adoption, with a survey of 89 (SMEs) without a

Website was used to test the model. Findings indicate that perceived benefits (strategic and

informational), organizational readiness (IT resources), and internal pressure directly affect

intent to adopt a Website. On the other hand, financial recourses and external pressures were

not found to be significantly influential.

20

Simmons et al. (2008), in a study titled by "A Conceptualization of the Determinants

of Small Business Website Adoption" aims to provide a conceptualization of the

determinants of small business Website adoption. The conceptualization supported by the

literatures, which provide an interpretation of what determines small business Website

adoption. The conceptualization presented in the study, was divided into four developed

determinant groupings: Decision Area, Instigators, Influencers, and Industry. Within

Decision Area grouping Determinant there are three sub components: Perception of Website

Value Determinant (Perception of benefits, Perception of costs/barriers), the Strategic

Website Development Determinant (Online objectives, Targeted customers/online value

proposition) and Nature of Business. Within the Instigator grouping: The Owner/Manager

determinants (Marketing ability, Entrepreneurial characteristics, & IT knowledge and

experience). Within the Influences grouping: Company (Size, & Life cycle stage online),

and Network (Business partner/competition & Government). Finally, within the Industry

grouping: Industry and culture/norms. The study develops nine hypotheses, which relate to

the critical interactions and integration, within and between four determinant groupings

underpinning the conceptualization. The hypotheses provide a research agenda for

developing an understanding of the dynamics within and between the determinant groupings,

potentially unlocking the theoretical door to what determines small business Website

adoption.

Dubelaar, Shoal and Savic, (2005) in a study carried out to asses the benefits,

impediments and major critical success factors in adopting business to consumer e-business

by reporting the results of a study carried out to assess benefits expected and benefits derived

from e-business adoption. Employed research strategy was based on multiple case studies

across eight organizations representing various industries, the sample selection was

21

purposive as the investigators were interested in interviewing only those managers

responsible for establishing and maintaining the e-business operation. The major

impediments identified are: leadership issues, operational issues, technology, and ineffective

solution design. The critical success factors in the adoption of e-business are identified as:

combining e-business knowledge, value propositions and delivery measurements, customer

satisfaction and retention, monitoring internal process and competitors activities, and

building trust. The research findings indicate that the majority of companies derived benefits

that were oriented on satisfying customers, improving process effectiveness, increasing

company growth in term of income, increased learning by customers, and enhancing value

generating.

Researchers noted that organizations operating entirely online faced greater

impediments in their e-business adoption than their off-line counterparts. In particular,

absence of clearly defined performance measures for online organizations requires attention,

as well as technical issues relating to system capacity, and development of customer

knowledge. As a conclusion the study suggests that e-business adoption requires

consideration from a long term perspective, and in congruence with organizational strategic

direction. By this perspective managers can ensure that e-business adoption is appropriate,

relevant, value adding, and operationally as well as strategically viable for an organization

instead of being a result of apprehensive compliance.

Fillis et al. (2004) aimed to formulate a conceptual framework of reasons behind

adoption and non-adoption of e-business in the smaller firms. Macro dimensions, industry

sector, and firm level factors are analyzed together with owner, manager’s motivations and

attitudes toward e-business adoption. The model shows that managers with a positive attitude

toward e-business adoption characterized by: motivation, innovation, proactively, flexibility,

22

and open to risk. Those managers with such attitude will be more aware of potential benefits

of adoption which will lead at the end to adoption decision. The opposite is true for whom

with a negative attitude toward adoption. The study also shows that not all smaller firms are

willing to embrace the technology, because of particular products and sector factors, e-

business deemed irrelevant, and by the sense that business is dedicated mainly by the end

customers, suppliers or distributors, who do not want to embrace e-business technology.

Managers prefer conventional traditional methods.

Xu, Zhu and Gibbs (2004) in a study aimed to gain better understanding of the global

diffusion of e-business among organizations in developed and developing countries, and to

investigate the relationships among e-business context, economic environment, and

organizational adoption the researchers concludes a large scale, cross country survey in two

countries –United State and China- and tested a research framework built upon:

technological condition, organizational characteristics, and environmental factors. Data

collected from 262 US firms and 175 Chinese firms. The study tested out four adoption

facilitators in general: technology competence, enterprise integration, competition intensity,

and regulatory environment. These factors played different role in different economic

environment. Major findings were: (a) government regulation plays a more critical role in

China than in the United State, (b) in the United State global scope is an adoption facilitator

while in China the increased complexity associated with greater scope tends to inhibit e-

business adoption, (c) as firms move into deeper stages of e-business transformation, the key

determinant shifts from technological infrastructure to organizational capabilities.

To and Nagi (2006) depending on the literature on innovation researches, aimed to

establishing and empirically testing a prediction model which consists of four major factors

in the adoption of online retailing by organizations: relative advantage, competitive pressure,

23

channel conflict, and technical resource competence. Questionnaire was used as the major

research tool for data collection from 140 different companies. The results revealed that

relative advantages, competitive pressure and technical resources competence have a positive

effect on the adoption of online retailing, while the relationship between channel conflict and

online retailing adoption was not supported. As a conclusion the study noted that companies

will be more likely to adopt online retailing when they perceive that technology can bring

advantages in a competitive environment as long as technical resources are available.

Aladwani (2003) in a study “key Internet characteristics and e-commerce issue in

Arab world,” aimed to shed light on the state of the Internet in Arab countries. The study has

shown that the Internet performance gab between advanced countries such as the USA and

the Arab region is far too large to be closed in the near future, and the Internet service

providers market in most Arab countries suffer monopoly: major obstacles of Internet take-

off in this part of the world. Primary issues foreseen by Arab business managers include

technical obstacles, the attitudes and the behaviors of e-commerce consumers. Internet

shoppers mentioned security, legal regulations, consumers privacy, and business reputation

as the most important e-commerce issue in the Arab region. Finally, the study recommended

coming over some of the critical barriers facing the Internet dissemination in Arab countries

by: (a) developing the basic Internet infrastructure through increasing the quantity and

quality of digital mainline and mobile telephones and Internet hosts, and expanding the link

between local and international telecommunication networks. (b) implementing appropriate

economic measures that increase the level of competition in the Internet service providers

market and permit Internet companies to provide their own international gateways. (c)

preparing a legal environment dealing with the Internet, including issuing appropriate e-

commerce laws such as the digital signature, the digital identity, tax treatment, consumer

24

protection. (d) formulating and implementing integrated educational and training plans that

aim to prepare a qualified technical workforce capable of developing and managing Internet

applications up to world standards. (e) finding and implementing appropriate public

awareness programs that build upon the favorable sentiments towards the Internet among

Arabs and shed light on the importance and benefits of the Internet and its applications for

the economic future of the Arab region, inducing actual use of e-commerce.

Yasin and Yavis (2007) used a qualitative approach based on observation to shed

light on e-business practices among Arab culture. The study identified constrains confronting

the expansion of the Internet and its related products and technologies in the Arab

environment, such constraints appear to be multi-faceted and include cultural, economic,

technological and legal inhibitors. Moreover in relation to Internet based-technology, the

Arab culture to a large extent is at the discovery stage. To move to later stages and accept,

adopt and utilize the Internet technology several actions on the public and the private fronts

are imperative. Governments should establish a national information technology

infrastructure and an innovation educational strategy while private sector should establish

innovative information technology based on business model and strategies, and establishing

educational strategy aimed at employees, business partners and customers.

Adham and Ahmad (2005) aims to examine the adoption rate of Websites and e-

commerce technology, by all 562 Malaysian public listed companies. After identifying the

testing companies URLs for operability, contents for all operable Websites were evaluated to

determine whether they had incorporated e-commerce system for on-line transaction. Of 562

companies, only 62 percent (351) were found to have operable Websites, and of 351, 96

percent were solely informational, leaving only 4 percent, that were equipped for e-

commerce transaction. The study showed that having a Website would give any public listed

25

company major advantages in the marketplace. The most effective Website implementation

appears to require aligning new technology with companies strategic planning, integrating it

into existing operations, using it to exploit new business opportunities and considering

customers need and expectation when designing and implementation the Website interface.

Soh et al. (1997) in their study aim to identify industries in which Internet is being

used for business in Singapore. Focusing on early adopters by providing information about

their Internet experience in term of their use, perception and the problems encountered,

which were measured by conducting a survey which was sent to 92 Singapore-based firm

giving a response rate of 30 percent, in their research a list of characteristics from the five

attributes of innovation proposed by Rogers (1995) were addressed in the survey. The

findings were that companies in seven major industries lead the business use of the Internet,

the industries are: computer and information technology, hospitality manufacturing, travel,

retail, publication, and banking and finance. Three of the top major commercial uses of the

Internet were services-related as most of the survey respondents used the Internet for

marketing and advertising, customer service and support, information gathering and to the

least degree of electronic transaction. Perceptions of the attributes of Internet are largely

positive. The problem encountered includes difficulty in location information, rising costs of

Internet use, and security.

Wu (2004) used Swanson's tri-core model and typology of IS innovation to analyze

Web service as IS innovation. Developing a three –layer nested- stage model as a road map

for studying Web service innovation. High compatibility, high divisibility, and high

customizability are the primary characteristics of Web services, which originate from the

innovation invention layer. Perceived communicability, perceived relative advantage,

perceived complexity and financial cost are the secondary characteristics of Web service,

26

which are located at the innovation adoption layer. The researcher proposes a readiness

model to illustrate the key controllable factors that influence the adoption decision of Web

services: innovation awareness readiness, innovation –need fit readiness, technological skill

readiness, and financial resources readiness. The most outstanding finding in the study is that

Web service innovation is not a single type of IS innovation, but a family of various type of

IS innovation, as there is a progression of Web service from IS technological process

innovation, to business process innovation, to business product innovation, and to business

integration innovation. Moreover reinvention of Web service occurs invariably in two forms:

selective adoption and creative implementation, which reveal high customizability. High

compatibility and high customizability of Web services may require much more active user

involvement in articulating expectation and experience than IT managers are used to. High

divisibility may require interactive incremental approach rather than radical innovation

approach. As a recommendation the researcher addressed that Web services seminars could

increase both innovation awareness readiness and innovation needs-fit readiness. Web

services foundation enhancement could increase technological skills readiness by providing

education on "how-to" type knowledge of Web service implementation.

Al-qirim (2007) conducts a research on adoption and diffusion of e-commerce in

developing countries, represented by a single case study for one non-government

organization (NGO) in the Hashemite Kingdom of Jordan namely "Jordan House

Commerce". The study attempts to provide general understanding about the organization

itself, the process it went through to adopt and to use e-commerce, and the challenges and the

drivers the NGO encountered in the adoption and use of e-commerce. Technological context,

Organizational context, and environmental context are the main framework presented for e-

commerce adoption in the study. The findings highlighted the important role of government

27

involvement in developing countries in motivating their NGOs and other organizations to

adopt e-commerce. Also, the top management supports were crucial for the success of the

adoption of the e-commerce in Jordan House Commerce. while the unavailability of an e-

payment gateway in Jordan, security concerns and limited number of IT staff would

constitute barriers in the long term, when the Website is expected to be used extensively by

employees and members and when the Website starts involving large amount of financial

transaction.

Bengtsson, Boter, and Vanyushyn (2007) on a study aim to investigate what

differentiates adopters of advanced Internet-based marketing operations from non-adopters in

firms of different sizes. The conceptual model for the study was centered on the set of

internal and external factors. Therefore, the study examines how the following factors drawn

from innovation related literature are used: (1) firm size as a determining factor that captures

many of the differences in firms’ innovation-related activities, and (2) specific factors

explaining innovative behavior: entrepreneurial drivers, willingness to cannibalize,

management support, and market pressure. The analysis was built on survey data from 379

Swedish manufacturing firms. The results of analysis show that composition of factors on

which firms base their decision to adopt advanced Internet-based marketing operations varies

significantly with firm size. The findings suggest that, size is positively associated with the

adoption of the advanced Internet-based marketing operations. The fact that the size of a firm

evidently influences investments in Internet routines for marketing purposes provides

tentative support to the stage model which indicates that investments in the Internet as a

business resource instrument are lengthy and sequential processes over time. For the very

small firms: findings suggest that the presence of the Internet champions, top management

commitment, and entrepreneurial support are the top three attributes that differentiate

28

between adopters and non-adopters of advanced Internet-based marketing channels. The

effect of market pressure is only marginally significant. The role of Internet champions fits

well into earlier findings that technical specialists are of a great importance for the adoption

of radical innovations. When it comes to advanced Internet adoption, medium-size firms

combine the attributes of smaller firms (as Internet champions and top management

commitment's are important) and large firms (market pressure is the second most important

factor). What makes these firms stand out is that willingness to cannibalize, i.e., readiness to

reduce the actual or potential value of their earlier investments, is the most important factor

differentiating between adopters and non-adopters. Also, Market pressure is by far the most

important factor differentiating between adopters and non-adopters among large firms.

In summary the previous literature shows that adoption decision made by

organization, could not be influenced only by the characteristics of technology itself and their

feature whether they are easy to use, compatible with organizations or will reflect on a

competitive advantages from their use and adoption, beyond that within organization level

the impact is wider than personal perspective and experience as it is reached to core business

objectives and processes. This requires from organizations in order to meet their objectives

and expectation from their adoption decision more consideration for external and

uncontrollable conditions as government regulations, competitors trends and telecom

infrastructure. Along with internal readiness for such an adoption include financial readiness,

knowledgeable IT staff, and continuous management support.

2.3 Website Implementation

E-business is often perceived as a technology and not a business concept Dubelaar et

al. (2005). This by itself is a road block to the degree to which organizational goals and

29

technology are linked to build and grow business. The potential of the Internet and the World

Wide Web is expanding every day, and companies which aim to have a competitive edge

over traditionally-oriented competitors are making the first step towards adoption. The

question is not whether to adopt the Internet and Web technology or not, companies have no

choice if they want to gain competitive advantage over competitors, but more how to sustain

their adoption and achieve effective implementation.

Kierzkowski et al. (1996) from the proposition that many marketers approach interactive

media in the same way they might approach traditional media like television, magazines,

even there are quiet and fundamental differences between both. Kierzkowski et al. (1996)

introduced a Digital Marketing Model built around five elements to get the opportunities of

interactive media, each of the five success factors suggests a number of issues that marketers

must address in order to success in digital arena, the five elements are: "Attract users, Engage

users interest and participation, Retain users and ensure they return to an application, Learn

about their preferences, and Relate back to them to provide the sort of customized

interactions that represent the true value of digital marketing". Following each of the five

elements will be described according to Kierzkowski et al. (1996).

1. Attract Users: Digital marketing requires consumers to voluntarily visit an

interactive application, such as a World Wide Website, thus the interaction is essentially

imposed on the consumer which make the policy of (build it and they will come) insufficient

to draw consumers, this policy might work in the market place but does not in the market

space, marketers need to actively attract users in the first place; the consumers should be

attracted to the site and this needs some consideration such as having mnemonic ''address"

for the site which is easy and intuitive for consumers to find and remember, billboard

30

advertisement, links from other sites and listings on the "what's cool" services or online

directories.

2. Engage Users: after attracting users to the Website, the next step is to engage user's

interest and participation to achieve an interaction or transaction that is, after all, a major

point of creating the Website in the first place; in this process too many efforts fail due to the

uninspiring exhibited content, or poorly presented, while for others graphics are simply too

time-consuming to browse given the unfortunate constraints on bandwidth of most present

Internet connections. The key to engaging users can be achieved by companies through

making creative programming for interactive media, and providing content that is valuable to

consumers.

3. Retain Users: Once consumers have been drawn to your site and engaged with

suitably interactive and valued content; companies must make sure that they keep returning

to the site emphasizes the need for marketers to recognize that digital marketing is not a one-

time project, but requires continued resource commitments over time, this can take place by

keeping site "fresh" through continuously re-new content and /or providing content that is

dynamic and changeable on an ongoing basis such as weather forecast report and stock

quotes. Another way by creation of switching costs for users as a mean to retain them. This

occurs as users invest in their own time and energy in the interaction with a digital marketing

application, or by providing user-to-user relationships where the more consumers invest time

and develop familiarity in interacting with others, the less likely they are to start building

these virtual relationships again elsewhere.

4. Learn: Companies should learn about consumers demographics, attitudes and

behaviors; these information can be captured via customers feedback, the registration process

or transaction records, cookies and Web page tracking devices. Many of these consumers are

31

reluctant to provide information about who they are and what they want, for lack of interest

or for fear of privacy invasion. these issues do not reduce the importance for marketers of

explicitly considering consumer learning objectives as this will require defining what type of

information may be most valuable to them, what that information is worth, and how to best

leverage their digital marketing application to obtain it. The potential value of that

information could someday be tremendous for marketers to expand into and cross-sell new

products or services, and create entirely new forms of consumer relationships and loyalty

programs.

5. Relate to Users: Relating is one of most important digital marketing value creation

opportunities. After obtaining the relevant information about users, companies can have the

opportunities to customize the interaction and tailor of either the products or the marketing

effort to consumers want. Give the opportunities to deliver either a personalized service or

product, or a communication about the availability for such a personalized service or product.

The efficiency and effectiveness of customizing interactions and gathering information on

interactive media should make relationship marketing to a large audience more attractive on

a network than it currently is in the physical world.

Teo and Tan (2002) on a study on Internet marketing strategy, of business to consume

(B2C) firms developed a survey that was sent to CEO's and marketing managers of 400

firms, of which 92 usable responses were obtained. The study aims to investigate the

adoption of the digital marketing model proposed by (Kierzkowski et al., 1996) in an Asian

context. And to shed some light on the effectiveness of digital marketing strategies on

building online brand equity and contributing to overall growth of the company. The results

indicated that strategies to attract customers and to relate to customers have a significant

positive relationship to online brand equity; in addition, on line brand equity is positively

32

related to financial growth. The study recommended future research to identify more

dimensions of digital marketing strategy proposed by (Kierzkwski et al. 1996) which may be

adopted by companies.

Raymond (2001) on a study titled of "Determinants of Website implementation in

small business" based on IT diffusion and assimilation theory, a developed survey study of

54 Canadian travel agencies; aims to identify various factors determining the assimilation of

e-commerce by small enterprises in the form of: Informational, Transactional, and Strategic

implementation of a Website. The constructs that represent the firms deemed to determine

their implementation of a Website were: Environmental context, Marketing strategy,

Managerial context, Organizational context, and Characteristics of e-commerce. The results

of the study indicate that informational implementation are determined by the environmental

context (Business partners influence, & Environmental uncertainty), whereas strategic

implementation is determined by the travel agencies marketing strategy (in term of

Distribution & Communication), and the organizational context determined by (type of

Ownership, & Nature of the business), and the characteristics of the e-commerce determined

by (Perceived advantages, & Technology attributes).

2.3.1 Effective Website Implementation

The World Wide Web is a pull medium, which means that audience has more control

over what they want to see, for that they will only choose to view a page if they know it

already exists (Pollach, 2005). Thus, organizations should take Websites visitors perceptions

seriously and know more about online customers behavior to successfully focus on creating

benefits and value that consumers will pay for. It is a must to understand what consumers

view as effective.

33

Ranganathan and Ganbathy (2002) asserted that Websites are essentially store houses

of information, which is provided in such away that it helps the visitors and thus, affects their

view of its effectiveness. In their empirical study the researchers aimed to examine the key

characteristics of business to consumer Websites. Based on a questionnaire survey of 214

online shoppers, the study derived four key dimensions of B2C Websites: information

content, design, security, and privacy. According to the researchers' content refers to the

information, features or services offered in the Website, while design is the way by which

contents are presented to consumers. The study shows that all the dimensions seem to have

an impact on the online purchase intent of consumers, were security and privacy found to

have greater effect. The study recommends online merchant to asses their Websites based on

the four variables and identify areas that need improvements to determine how to create B2C

Websites that can effectively attract and retain consumers. So that key objectives, such as

online purchase, Web visitor’s satisfaction, repeat visits, and online customer's loyalty are

attained in a step in developing an overall e-business strategy of an organization.

Wang, Tang and Tang (2001) noted that the effectiveness of digital marketing cannot

be evaluated using simple financial measures, such as, return on investment. The

effectiveness measure of digital marketing must incorporate different aspects of customer’s

satisfaction to become a diagnostic instrument for practical and theoretical use. The

researchers developed a comprehensive model and instrument for measuring Customer

Information Satisfaction (CIS) for Website that markets digital product and services. The

instrument indicates adequate reliability and validity across a verity of Websites marketing

digital products and services. The final instrument represents seven distinct factors. These

factors are: first is customer support "refers to customer services, feedback, and

responsiveness which can build loyalty for future purchase", second is security "refers to the

34

extent to which a Website protects customers", third is ease of use "means the usability of a

Website's user interface", fourth is digital product/services "includes the core item and the

entire package of offerings, such as the design and quality of the digital products or

services", fifth is transaction and payment "the payment systems and transaction procedure

offered by a Website", sixth is information content "involves the information quality (e.g.,

accuracy and relevancy) provided by the sales force or the online site", and finally,

innovation "refers to the ability of a Website to provide innovative products and timely

information". Each factor represents a product or process where a company interacts with

customers and provides a useful frame for understanding the measurement of Customer

Information Satisfaction.

Researchers indicate that most sites go un-noticed, and visited sites must capture

visitors attention within 8 seconds (Kotler, 2000). Visitors remain at the site for a certain

period of time, download content from the site, forward it to other people, request

information from the site, purchase something, or return at the site at other stage, whether or

not, this action Occurs depends on the value and the quality of the information provided

(Pollach, 2005).

The content of B2C Website plays an important role in influencing the purchase decision

process of a consumer. Companies should allow the consumers to locate and select the

merchandise that best satisfies their needs. Thus, the usefulness of a B2C Website not only

depends on the information content, but also on the tools provided for navigating and

evaluating the use of information (Ranganathan & Ganbathy, 2002). Alzola and Robaina

(2006) asserted that good Web design configured by the ease with which the customers find

sections, pages and information intuitively, with the aid of good signposting and useful

navigation tools. and by the increase on a B2C Websites, the statement of Web usability

35

becomes more important from users perspective, where Web usability can be defined as

"making the design simple enough so that customers, who by nature tend to be goal driven,

can accomplish their task as quickly and painlessly as possible" (Pearson, Persons, & Green,

2007). Usability has three components: in addition to content, organization or navigation, and

presentation of the content are central issues for usability. A clear organization structure with

an easy-to-use navigation system is essential. Navigation is defined as the user’s ability to

find information efficiently with few barriers. If users cannot figure out the nature or

structure of the site and what they can find there, they become frustrated and quickly leave

(Coleman, Lieber, Mendelson, and Kurpius, 2008).

Pearson et al. (2007) in a study aim to investigate the relative importance of five

criteria in assessing Web usability, these criteria are: navigation, download speed,

personalization, ease of use, and accessibility which means that information has been made

available for use by potential users of that particular Website, including individuals with

disabilities. The research indicated that ease of use and navigation are the most important

criteria in determining Website usability, Websites that have broken links or poor Website

design would not be considered very user friendly; and navigation that is simple, efficient,

user-centered, and flexible will help the customer achieve intended goals and increase the

likelihood of return visits, while personalization and customization are less important. Also,

the study showed that females placed greater emphasis on both navigation and ease of use

than did males; which make these criteria important for women in their intention to utilize

the Internet. Moreover the study showed that if users found a site difficult to use (usability),

then they typically will nit ‘stick around’ to determine if the content (usefulness) meets their

requirements. For that organization have to understand who are their targeted customers

36

before moving into the e-commerce arena, by determining which criteria of Web usability

are most important to the users a modification step for their Website design should be taken.

Kim and Fesenmaier (2008) examine the persuasiveness of destination Websites

through an investigation of users first impression. Persuasion is operationally defined as a

destination Websites ability to evoke favorable impressions toward the site. Based on

literature, the study argued that six dimensions: Informativeness-Related Design Factors,

Usability-Related Design Factors (destination Websites must be user-friendly so that

information searchers can easily navigate sites with no or a minimal level of mental effort),

Credibility-Related Design Factors (describing how much a Website visitor trusts the

Website), Inspiration-Related Design Factors (Inspiration can be understood as an indicator

of motivation involving the energy and direction of behavior and can be evoked by stimuli

appealing to truth, goodness, beauty, or superiority), Involvement-Related Design Factors

(Involvement is perceived as a motivational force directly related to various behavioral

outcomes, including the number and types of choice criteria, extensiveness of information

search, length of the decision-making process, variety seeking, and brand attitude), and

Reciprocity-Related Design Factors (reciprocity refers to the extent to which a Website is

perceived to provide or support two-way information exchange between the destination and

users), can be used to measure the persuasiveness of destination Websites in the United

States. By surveying 65 undergraduate students, the results of this study indicate that the

participants were able to make quick judgments on tourism Websites and that inspiration and

usability were the primary drivers evoking a favorable first impression. The study suggests

that visually appealing stimuli is the most important tool for converting Website's lookers to

users and/or making them stay longer on the Website, and as Usability was the second most

significant driver of first impression formation, followed by credibility. The author inferred

37

that travelers easily gravitate toward Websites that are easy to learn and exhibit clear

navigational paths. Thus, because Website choice is a preliminary step for earnest trip

planning, Website design must provide obvious and appropriate cues indicating the quality of

the information source, thereby requiring a minimum level of mental effort.

Li et al. (2006) in a study aimed to determine the relational and the psychological

factors that can explain an individual's propensity to stick to Website, and how close these

factors influence stickiness; which was expressed by the researchers as "using a Website in a

user's normal activity or embedding a Website within a user's routine, which is similar to the

notion of continues use". Theories from social psychology and relationship marketing are

used to develop a model of Website stickiness from the user’s perspective. The model

focuses on the relationship between users and Website, with commitment and trust as key

mediating variables, with a total of 239 respondents to a survey concerning Website

stickiness. Major findings were that a Websites user’s awareness of the quality and the

availability of alternative Website will reduce commitment to the present Website. The study

also found that investment in the present Website had a significant effect on commitment,

suggesting that the users still value the sunk costs they have placed in a current Website and

the potential switching cost when they decide whether to stick to a Website or switch to

another. Trust was found to be significantly influenced by the quality of the communication

between Website's users and the vendor. In evaluating a Website vendor’s trustworthiness,

users seem to be concerned with whether the vendor can communicate with them effectively.

The results also showed that a vendor’s opportunistic behavior, such as violating privacy

policy, delaying in the delivery of products and services, or breaking a service-level

agreement, can reduce or destroy Website users trust beliefs toward the vendor. Users would

then reduce or stop their use of the Website. Moreover the study showed that the effective

38

communication efforts by the business can improve the mutual understanding with

consumers and thus improve its online communication capability by utilizing available

design features, such as, customization, personalization, and interactivity, to collect, track

and update consumers profiles. While Alzola and Robaina (2005) addressed that

personalization of the offer to meet the needs and demands of the consumer could be one

dimension of the relational result; by mean of effective management of customer data the

firm can defined an offer that is tailored as closely as possible to the need of the individual.

Stein (2009) on a study aims to examine US-based social movement organization

(SMO) Internet use at one of its most visible points of access, the World Wide Web. The

study aims to describe how and to what extent social movements are using their Websites as

a communication resource. The study designed a survey instrument, investigated which

features actually appear on the Websites of a random sample of 86 national SMOs, and

highlighted the discrepancy between the potential and actual uses of the Web by SMOs. The

survey results suggest that the majority of national SMOs are not utilizing the Web to its full

capacity. The study shows moderate or high levels of activity in four areas deemed central to

social movements: providing information; coordinating action and mobilization; engaging in

fundraising and resource generation; and making lateral linkages. However, with the

exception of information provision, the majority of SMOs exhibit no or low activity in these

areas. Positing a number of reasons why SMOs may not take advantage of the full range of

Web functions, that may lack of the; necessary resources (including time, money and

knowledge), organizational goals (strategies and objectives), and organizational efforts to

share or pool resources

Pollach (2005) on a study titled by “corporate self-presentation on the World Wide

Web,” aims to identifying strategies for enhancing site usability, message credibility, and

39

information utility. Content analysis, quantitative linguistics analysis, and discourse analysis

were used to examine the “about us” section of 20 well known corporate Websites. The

findings suggest that companies recognize the challenges provided by the World Wide Web

mediated communication but fail to respond adequately. The study showed that the

companies could enhance their Websites by adopting a more user-centered approach by

raising the level of interactivity in order to present their audiences with more relevant

information. Companies need to improve the navigation architecture of their sites to enhance

usability. Further more, many companies seem to be unaware of the benefits of contextual

navigation and thus make little use of it. The study also shows that the sample companies

enhance the credibility of their messages by using a number of persuasive appeals, such as

third party evidence, or numbers, at the same time they make gross overstatement when they

describe themselves; where they advised to substantiate their claims to enhance the

credibility of their messages. Moreover sample companies largely neglect opportunities for

dialogue and interaction by the absence of interactive feature. Finally, study recommends

companies to make more effort to entice users to see materials they would otherwise not

choose what to see.

In conclusion, managers should take these factors in consideration while building and

implementing corporate Websites for their ability to meet both customers and business goals

not to mention success and effectiveness.

In most instances, users do not contact anyone on the e-vendor side, but simply rely

on the Website and treat it as the business representative (Li, Brown, & Weherbe, 2006).

Thus, trust also can be addressed as another underlying factor for the success of Website, or

company's service, consumer's trust is acknowledged as a key element in determining the

success of B2C e-business offering (Winch, & Joyce, 2006).

40

Web Adoption and Implementation

Web Adoption and Implementation

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (19)

Andere mochten auch

Andere mochten auch (20)

Ähnlich wie Web Adoption and Implementation

Ähnlich wie Web Adoption and Implementation (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Web Adoption and Implementation