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EXAMINING THE NON-ADOPTION OF IN MAINLAND CHINA Group 9

Skype case study

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Page 1: Skype case study

EXAMINING THE NON-ADOPTION OF IN MAINLAND CHINA

Group 9

Page 2: Skype case study

Introduction

Worldwide:

Skype, brought more than 300 million people worldwide together

Mainland China:

84% of Internet users, around 497 million people, make use of instant messaging applications.

Sources from: China Internet Network Information Center (CNNIC)

Page 3: Skype case study

However…

Page 4: Skype case study
Page 5: Skype case study
Page 6: Skype case study

Do you use Skype?

Do you use Skype for domestic

contact ?!

Page 7: Skype case study

Video

Page 8: Skype case study

WHY PEOPLE DO NOT ADOPT FOR DOMESTIC CONTACT IN

MAINLAND CHINA?

Page 9: Skype case study

Agenda

• Introduction• Literature review• Methodology• Findings• Conclusion

Page 10: Skype case study

Before Literature Review...

• Non-adoption:• Low frequency, low intensity.• Or, never use.

• Domestic contact:• People contact with each other within mainland

China.

Page 11: Skype case study

1.Diffusion of Innovation

Triability is the degree to which an innovation may be experimented with on limited basis. (Inapplicable!)

Complexity

Relative Advantage

Compatibility

Observability

TriabilityAdoption of other applications

Literature Review

Page 12: Skype case study

2.The theory of reasoned action (TRA)

3.Techonology of Acceptance Model (TAM)

Peer influence (Reciprocity)

Perceived popularity

Literature Review

Page 13: Skype case study

Research Framework

Non-Adoption

Complexity

Relative Disadvantage

Incompatibility

Absence of observed benefits

Peer influence

Perceived popularity

Adoption of other applications

Frequency

Intensity

DV

IV

Page 14: Skype case study

Complexity the degree to which an innovation is perceived as difficult to understand and use.

•More complex an innovation is, less rapidly it is adopted.•H1: complex non-adopters

Relative disadvantage the degree to which an innovation is not perceived as good as other ideas.

•An innovation has obvious disadvantages than the alternatives.

•H2: relative disadvantage non-adopters

Literature Review

Page 15: Skype case study

Literature Review

Incompatibility the degree to which an innovation is perceived as being consistent with existing values, past experiences, and needs of potential adopters.

•Incompatible idea is not adopted as rapidly as compatible one.

•H3:incompatibility non-adopters

Absence of observed benefits the degree to which the results of an innovation are invisible to others.

•Less benefits of innovation observed, less rapidly it is adopted.

•H4: Absence of observed benefits non-adopters

Page 16: Skype case study

Adoption of other applications the use of functionally similar technologies is a significant predictor of the adoption of innovation.

•H5: other applications non-adopters

Peer influence (Reciprocity) derived from SN from TRA

•H6: friends non-adopters

Perceived popularity derived from “perceived enjoyment” from TAM

•H7: perceived popularity non-adopters

Literature Review

Page 17: Skype case study

Methodology

• Online survey created on www.sojump.com• Snowball sampling• 202 respondents: 91 Male + 111 Female• All aged from 17- 28

Page 18: Skype case study

Sample Characteristics

Reliability Test

Descriptive Analysis

Regression Analysis

Findings

Page 19: Skype case study

1. Sample Information

Male45%

Fe-male55%

1.1 Gender

Male : 91, 45.0%

Female : 111, 55.0%

---------------------------------

Total : 202

Page 20: Skype case study

1. Sample Information

Primary school and below

1%High school

3%

Under-graduate

60%

Post-graduate

37%

1.2 Education

Primary school & below : 2, 1.0%

High school : 5, 2.5%

Undergraduate : 121, 59.9%

Postgraduate : 74, 36.6%

---------------------------------

Total : 202

Page 21: Skype case study

1. Sample Information

0-100015%

1001-200021%

2001-300019%

3001-400016%

above 400128%

1.3 Income

0 – 1000 : 31, 15.3%

1001 – 2000 : 43, 21.3%

2001 – 3000 : 39, 19.3%

3001 – 4000 : 33, 16.3%

Above 4000 : 56, 27.7%

---------------------------------

Total : 202

MEAN : 3.20 SD : 1.439The average income is

2000 – 3000

Page 22: Skype case study

2. The use of Skype

Never47%

Sel-dom35%

Some-times12%

Often3% Always

3%

How often do you use Skype for domestic contact?

Never : 95, 47.0%

Seldom : 70, 34.7%

Sometimes : 24, 11.9%

Often : 7, 3.5%

Always : 6, 3.0%

---------------------------------

Total: 202

About 81.7% of the responders choose they never use or seldom use Skype. Only 6.5% of the responders choose that they often or very often to use it.

Page 23: Skype case study

2. The use of Skype

Less than 10

mins72%

10-20 mins11%

20-30 mins9%

30-60 mins3% Above 60 mins

5%

How long do you spend on Skype each time for domestic call?

Less than 10 mins : 145, 71.8%

10 – 20 mins : 22, 10.9%

20 – 30 mins : 18, 8.9%

30 – 60 mins : 6, 3.0%

Above 60 mins : 11, 5.4%

---------------------------------

Total: 202

About 71.8% of the responders chosethey use Skype less than 10 minutes.Combined with these 2 questions…The adoption rate of Skype among

mainland China youngsters is relatively LOW.

Page 24: Skype case study

Reliability testComplexity

Relative advantage

Compatibility

Reciprocity

Complexity

Cronbach's Alpha N of Items

.912 5Relative disadvantage

Cronbach's Alpha N of Items

.828 4

Peer Influence

Cronbach's Alpha N of Items

.904 4

Incompatibility

Cronbach's Alpha N of Items

.836 4

Our scales all have relatively high Alpha and are reliable.

Page 25: Skype case study

Relation analysis (linear regression)

• Adjusted R Square: 0.54

Our combined IVs explain…

54% of the variance of the DV.

Page 26: Skype case study

Relation analysis (linear regression) Coefficientsa

Model

Standardized

CoefficientsBeta

Sig.

1

(Constant)   .000

Gender -.033 .521

Education -.100 .064

Income -.025 .625

Complexity -.376 .000

Relative Disadvantage .282 .000

Incompatibility .012 .859

Observability (Absence of visible benefit) -.259 .000

Peer Influence -.319 .000

Perceived Popularity -.051 .428Adoption of other applications .026 .609

a. Dependent Variable: DV

Significant: • Complexity• Relative Disadvantage• Absence of observed

benefits• Peer Influence

Page 27: Skype case study

Relative disadvantages

Page 28: Skype case study

Conclusion• H1 : Supported

The more complex the Skype service is, the more likely people will become non-adopters of Skype

• H2 : SupportedThe more relative disadvantages Skype has, the more likely people will become non-adopters of Skype

• H3 : Not supported (Not significant)The more incompatibility Skype service has with people’s existing values, the more likely they will become non-adopters of Skype

• H4 : SupportedThe more absence of benefits of Skype people observe, the more likely they will become non-adopters.

Page 29: Skype case study

Conclusion• H5 : Not supported (Not significant)

The more other applications people use, the more likely they will become non-adopters of Skype

• H6 : SupportedThe fewer friends are using Skype, the more likely people will become non-adopters of Skype

• H7 : Not supported (Not significant) The less popularity of Skype people perceive, the more likely they will become non-adopters of Skype

Page 30: Skype case study

Limitation

• Snowball sampling:

respondents are almost university students

• Sampling size is not large enough

• Predictors are limited

Page 31: Skype case study

Implication

• For Skype- examine their failure in mainland China

• For Developers of information systems and organizations- adopting the new technology.

• For professionals-design systems and implementation methodologies

Page 32: Skype case study

Q & A?Thank you for your time!