Extending UTAUT to explain social media adoption by microbusinesses

New Zealand Information Systems Doctoral Consortium – Conference held on 31st August 2012 at

University of Waikato

Debashish Mandal - University of Waikato [email protected]

Chief Supervisor: Prof. Robert J McQueen

Supervisor: Dr. Stuart Dillion and Dr. Karyn Rastrick

Title

Extending UTAUT to explain social media adoption by microbusinesses

Abstract

This paper establishes inadequacies of the Unified Theory of Acceptance and Use of Technology

(UTAUT) theory to explain social media adoption by microbusinesses. Literature review confirms the

explaining power of UTAUT in variety of technology adoption by businesses. This paper uses UTAUT

theory to implement social media technology in microbusinesses. Canonical action research method

is adopted to introduce social media in microbusinesses. A post positivist approach is used to report

the results based on a predetermined premise. It was found that the major constructs of performance

and effort expectancy played insignificant role in establishing behavioural and adoption intention of

social media by microbusinesses. Social influence and facilitating condition did not influence the

behavioural intentions of the microbusiness owners. Individual characteristics and codification effort

dominated the use behaviour. Goal of gaining customers leads to behavioural modification resulting

in replacing of behavioural intention with goals as a superior method of predicting adoption

behaviour within the context of microbusinesses. This paper extends the UTAUT to explain social

media adoption in microbusinesses.

Key words

UTAUT, social media, action research, microbusiness

mailto:[email protected]



Social media is being adopted by business primarily to talk with the customer rather than the old

method of talk at the customer. Applications are simple, free; web based, and depends on content,

which is generated by the user. It supports parallel multiple communications with business to

consumer, consumer to consumer, and a network of forums or groups. These groups specialises in

subjects or share common interest having a great influence on buying decisions of a buyer. Businesses

are trying to participate in this communication to gather perception of customers about products and

get ideas about new product development. Another prominent use is dissemination of information

such as daily deals, which can be broadcasted by the business to a select target group of users who

have opted to receive this information. The micro broadcasting capability to a select group has been

used recently in various campaigns prominently the Egypt revolution. The people were able to self-

organise and keep up the tempo by publishing photos of the struggle and gather world support leading

to the ultimate over throwing of the government.

The micro publishing feature has revolutionised small businesses that are able to circumvent large and

expensive media to bring attention, market and sell their products and services. Many microbusinesses

have adopted Twitter and Facebook with varying levels of success. The primary question that arises

how can microbusiness take advantage of the micro publishing feature of the social media for their

businesses? This paper aims to answer this question using UTAUT the most dominant adoption

theory that explains almost seventy per cent of variance in adoption behaviour. The literature review

identifies the gap in the literature to establish the uniqueness of this investigation. Next, research

questions are framed and following a post positivist approach suitable propositions has been

developed. The action research method is described along with the data analysis process. The results

of the investigation are presented followed by the discussion section that links back to the literature

review and propositions pointing out agreement and disagreements with the same. Finally, before

concluding, the primary limitation of single case study (rigour) and ways to circumvent the same is

detailed.

Literature review

The review identifies gap in the literature on microbusiness adoption of information systems using the

UTAUT theory. Scant investigation has been performed using the UTAUT in small business sector.

In reference to social media, limited investigation has been performed on its adoption by businesses

using the UTAUT. These investigations primarily used TAM. This research addresses the gap by

providing the knowledge on the predicting capability of UTAUT in social media adoption by

microbusinesses. For detailed analysis of UTAUT reader can refer to Dwivedi, Mustafee, Carter, &

Williams (2010); Dwivedi, Rana, Chen, & Williams (2011) and Oye, A.Iahad, & Ab.Rahim (2012).

The first two are biblometric analysis and meta-analysis the third being a complete history of

UTAUT.

Specific extensions to the UTAUT has been covered by Venkatesh, Thong, & Xu (2012) proposing

the UTAUT2 specifically from individual consumer context adding habit, hedonic motivation and

price value as new constructs. Habit in UTAUT2 is obtained from the individual characteristics theory

also called as the big five personality traits. Such extension has been performed by Devaraj, Easley, &

Crant (2008) adding individual characteristics to the UTAUT. Microbusiness owners are individuals

and their characteristics may play an important role in adoption of social media. UTAUT construct of

behavioural intention has been questioned by Venkatesh, Brown, Maruping, & Bala (2008) suggesting

behavioural expectation as an appropriate replacement for behavioural intention. The relation between

behavioural intention and use behaviour has been questioned by Sheppard, Hartwick, & Warshaw

(1988). Bagozzi (2007) opines that, “the intention-behaviour linkage is probably the most uncritically

accepted assumption” (p. 245) turning in favour of a goal oriented model.

UTAUT and technology diffusion theory has been used to understand social media adoption (Twitter)

in a business environment. Günther, Krasnova, Riehle, & Schondienst (2009) identify codification

effort and reputation as new constructs affecting behaviour in adoption of twitter for inter office

communication. Time and privacy was the overriding concern for all the participants. DiMicco et al.



(2008) find out that caring, climbing and campaigning are the biggest motivators of use of social

media for IBM employees. Barnes & Böhringer (2011) identify habit as a dominant factor for use of

micro blogging in a business communication environment. The habit construct points to individual

characteristics as incorporated in UTAUT2. Turban, Bolloju, & Liang, (2011) identify that social

networking in enterprises poses several risk in terms of legal risk, internet resources, security,

intellectual property and misuse by employees by wasting time on such networks.

Finally within microbusiness literature on technology adoption Qureshil, Kamal, & Wolcott (2009)

identify technical ability of the owner as the primary lacunae in successfully leveraging the

technology. The technical ability can be easily linked to individual characteristics and innovativeness

discussed above. Literature on microbusinesses focuses on scarce resources leading to predominance

of networking and sharing. However, such networking is necessarily offline and hence not considered

in this literature review. Time can be a scarce resource and has been considered earlier above.

Technology adoption literature on Small and medium enterprise (SME) is substantial such as Li,

Troutt, Brandyberry, & Wang (2011) identify relative advantage as the main factor in post technology

adoption. Street & Meister (2004) establish the role of information systems to compliment the

informal communication system existing internally and externally in an SME. Macredie & Mijinyawa

(2011) identify relative advantage, compatibility complexity, and self-efficacy to play a prominent

role in open source software adoption by SME’s.

The literature gap positions this research as unique providing the much-needed knowledge on

applicability of UTAUT in social media adoption by microbusinesses. Secondly, role of individual

characteristics in social media adoption by microbusiness owner would be a valuable contextual

addition to the UTAUT theory and the existing body of knowledge. Finally, converting the UTAUT to

a goal-oriented model would increase the relevance of the overall model from a practitioner

perspective.

Research Questions

The research seeks to address the following question: How is social media adopted by

microbusinesses? To address this question UTAUT has been used as the theoretical base to

understand the adoption process of social media by microbusinesses. It is expected that the key

construct performance expectancy will play a prominent role in influencing the behavioural pattern of

microbusiness owners leading to greater use of social media tool. Secondly, due to the simplicity of

social media tools effort expectancy will play a non-significant role leading to immediate use of social

media by microbusiness owners. Social influence including image will play a pivotal role such that

the microbusiness owners will enjoy a higher self-esteem in being able to use a new and in-fashion

technology for marketing. Finally facilitating condition will play the role of a moderator such as it

will be important in the initial stages of adoption as originally theorised by UTAUT. The role of age,

gender, and experience is beyond the scope of this investigation. Voluntariness is not included for

reasons as cited in UTAUT2.The reporting style of this paper follows the recommendations by

DeLuca, Gallivan, & Kock (2008).

Method

Weak constructionist approach is followed with focus on examining utility of an artefact and limited

emphasis on reality. An action research method is employed by introducing social media Facebook

business page in the microbusiness. Training on use along with awareness has been planned on two

canonical action research cycles. A third unplanned cycle was required after completion of the first

two cycles. The third cycle inserts an illustrative demonstration for the participant to exemplify the

use of Facebook business page by similar businesses. The initial cycles are driven by UTAUT to

develop and guide the adoption process. The author is aware that UTAUT is a theory from the

positivist domain and this research hopes to extend the knowledge using an interpretive strategy. This

approach is consistent with Lee, (1994) who has interpretively examined media richness theory. The

first cycle was conducted evaluated and learning captured to lead to the second cycle. Evaluation and



learning from the second cycle required a third cycle. Due to space restriction the evaluation and

learning is reported in the results. It is understood that the evaluation and learning took place in

cycles.

Data collection is done by participant observation (memos) and unstructured interviews during the

action research implementation and finally a semi-structured interview after implementation and

adoption. Participant observation is possible since the facebook business page is a public tool.

Activity of the microbusiness owner on the tool can be easily observed. The observation is recorded

as memos for analysis. Data triangulation is done by conducting interview from two similar

microbusinesses already using facebook business page. Secondary data is obtained from the facebook

business pages and business mentors. This data is collected using social media tools such as Twitter,

LinkedIn, Facebook, and Blogs. Data analysis follows the recommendations from Baskerville (1999)

and DeLuca et al., (2008). Data collection and analysis is performed simultaneously through each

stage of diagnosis, action planning, action taking, evaluating and specifying learning. A list of code is

developed from theory such as efficacy, effort, performance, time, and goals for initial data analysis.

This initial codes help in early categorisation of the data during data collection. Later data is then

open coded followed by axial and selective coding to develop core categories. The coding activity is

performed using NVivo. Triangulation data is analysed following the above process. Follow-up

interviews and observation of the page is carried out after six months for confirmation of results.

Results

Contrary to the expectation, though the microbusiness owner is aware of the usefulness of Facebook

business page but is not capable and hesitant to use the same. Facebook business pages are technically

simple to use but the microbusiness owner struggled to find suitable content to engage the customer.

Time spent to use the tool become an important criteria to use the tool. Participants felt that it was

much easier to use the radio and print media rather than the social media site. On completion of the

first two cycles, the use of the tool died down after the initial “new” euphoria. The owner did not see

any benefit in using the tool in comparison to effort required for using the same. The microbusiness

owner was not greatly influenced by social situation. Image played little role over business

consideration. The owners had a headstrong belief leading to very little addition by the facilitator in

this case the researcher himself.

Discussion

The primary construct of UTAUT performance expectancy (which includes relative advantage) has

reduced importance in a social media adoption scenario. Bagozzi (2007) argues that “a person can

recognize and even accept that PU or attitudes are favourable criteria for deciding to act, but have no

desire to act and even explicitly decide not to act in the face of these reasons” (p. 245). This seems to

be also in contradiction to Li et al. (2011) and Macredie & Mijinyawa (2011) who have identified that

relative advantage plays important role in use of new technology by SME’s. New constructs under

effort expectancy such as codification effort and time required to use the tool downplayed the

importance of the tool. This is in agreement with finding of Günther et al. (2009) who have

highlighted the problem of finding the appropriate content. At this stage, it is not possible to establish

a causal relationship between the two constructs since data was not collected to support the same.

When the owners were presented with an illustrative module of use of the tool by exact same

businesses, they decided to make effort to use the tool. The owners reviewed the illustrative module

and decided to modify their behaviour towards using the tool with one of the owners taking the lead.

The successful microbusiness owners who have been using the page innovatively to the advantage of

their business seemed to have a positive effect on participants approach towards the tool. The

illustrative module invigorated the use of the facebook business page leading to substantial use by the

participant. This suggests that individual characteristic of innovation and training seems to play the

most deterministic role in adoption of social media by microbusiness. This is consistent with the

finding of Devaraj et al. (2008) and Venkatesh et al. (2012) who have pointed out the role of



individual characteristics. This research did not find any evidence of importance of habit as a

construct advocated by Venkatesh et al. (2012) and Barnes & Böhringer (2011). Consistent with the

finding of DiMicco et al. (2008) campaigning for its products and services took precedence rather

than customer care. As the participants saw value (usefulness) with customers responding to some of

their posts they made a proactive effort to use the tool. This point out that microbusiness owners are

enterprising people highly goal oriented and willing to do the necessary to achieve their goals. The

behavioural intention construct seemed to lose importance in face of desire to achieve their goals

determining the maximum indicator of adoption. It confirms the findings and propositions of Bagozzi

(2007), Venkatesh et al. (2008) and Sheppard et al. (1988). Based on the findings Figure 1 below

summarises the extended model of social media adoption by microbusiness.

Figure 1 Extended UTAUT Model

Theoretical contributions

From Figure 1it is theorised that desire to achieve goals using the social media tool primarily play the

most important indicator of adoption. Microbusiness owners are capable of undergoing modification

to their behaviour to achieve their goals. Achievement of goals would be primary and the maximum

motivator leading to social media adoption. Goal achievement is based on individual characteristics

which is the second most important construct followed by effort expectancy. The two-way arrow

indicates that social media use evolves over time as the owner develops a comfort zone and gets used

to the medium and the idea of chatting with the customers. As the owner achieves the goal of gaining

new customers it provides encouragement to try out new ideas, spend more time, and understand the

usefulness of the medium. The loop continues as the owner discovers new use of the social media

tool. The developed theory will be used to implement and examine social media adoption in other

microbusinesses to validate the theory and refine the findings.

Implications for research

A fresh look is required for use of TAM and UTAUT specifically while examining technology

adoption by microbusinesses. Due to single case study, the individual characteristics could not be

examined in detail. It leaves questions unanswered such as why personality trait is relevant for social

media adoption by microbusinesses. Goal oriented models need to incorporated rather than

behavioural intentions, which have a greater capability to predict technology adoption by

Individual Characteristics 1. Innovativeness

2. Personality Traits

Performance Expectancy 1. Usefulness

2. Outcome Expectations

Effort Expectancy 1. Codification Effort

2. Time Required

Social Influence 1. Social Factors

Facilitating Conditions 1. Training & Support

Social Media Use 1. Duration 2. Frequency

3. Intensity

Goals 1. Gain New Customer 2. Engage Customer

3. Word of Mouth Marketing

Moderator



microbusinesses. In the positivist sense, it is necessary to compare the efficiency of a goal-oriented

model against a behaviour-based model. Paradigmatically the balancing of reality (behaviour) versus

use of an IT artefact (goal) model would require efficient research design. There may be causal

relationship between individual characteristics and effort expectancy, which can be explained better

through an interpretive standpoint. In the usual positivist argument high effort requires a challenge-

oriented person (individual characteristics) to play a pivotal role in deciding extend of adoption. Such

a straightforward relationship could be difficult to establish since innovativeness can play spoilsport.

The nature of innovativeness is a personal trait, which can be better explored through further close

contact interpretive investigations. Overall, further investigation is necessary to establish straight

forward hypothesis for positivist oriented investigation.

Strengths and limitations

Action research employed helped the researcher to portray the adoption process at extremely close

quarters within the business. Data triangulation from similar business makes the research extremely

relevant for retail microbusinesses. The extensions and modifications made to the UTAUT are

consistent with past suggestions and modifications.

Since a single case study has been used, higher value has been put forward for relevance rather than

rigour. The theory development is based on a single case. This exploratory development was

necessary due to absence of theory in adoption of social media by microbusiness. The limitation of

this study shall be overcome by conducting further action research investigation using the developed

theory. No negative evidence was collected to falsify the theory leading to major flaw in the theory

development process. However, the limited scope of the investigation did not permit looking for

negative evidences. The case of bias against action research is substantially strong. In this case, the

author was actively involved with the practitioner over elongated period leading to going native. The

author managed the going native aspect by recognising the dual cycle of action (a) the research cycle

and (b) the problem solving cycle. In this manner, distinctly separating the two cycle’s bias was

managed to bring about a non-partial collection and analysis of data.

Implications for practice

The two main implication are (a) Patience is a virtue and social media experience cannot be done

overnight. (b) The microbusiness owner is the best judge about his business. Communication with the

customer cannot be outsourced. Practise is required to gain efficacy with social media. Regular and

continuous systematic use will lead to benefits. It is efficient to learn from established facebook users

by observing their content. Innovative trial-and-error use of the facebook business page is necessary

to understand the best possible engaging experience for the customer.

Conclusions

The paper makes out a case for extending the UTAUT to accommodate the adoption of social media

process by microbusinesses. Individual characteristics of innovativeness on use of the facebook

business page seemed to be the most dominant role for adopting social media. Codification effort and

time required for using the tool can significantly undermine use of the tool. The learning curve for

technologically less informed business owners may be higher. A goal-oriented model is simpler for

the practitioner community to understand and follow rather than behavioural intention. Further

interpretive investigation is required for developing solid hypothesis for a positivist-oriented

investigation.



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