Motivators and Inhibitors of e-Commerce Technology Adoption: Online Stock Trading by Small Brokerage Firms in New Zealand

Abstract

As electronic commerce becomes increasingly important in the global economy, it has the potential to change the dynamics of the global market and the way in which firms conduct their business. It is therefore important to understand the factors that motivate or hinder e- commerce adoption, and hence the development of the electronic market. This study investigates four full-service stock brokerage firms at various stages of adoption of online stock trading technology. The findings suggest that business strategy, perceived net benefits, strong management commitment, and external pressure are key factors motivating adoption. Conversely, poor alignment with business strategy, perceived low (or negative) net benefit (particularly low or nil return on EC investments), and low management commitment are likely to inhibit adoption. Contrary to expectations, technological and financial readiness were not found to be motivators of adoption.

Keywords:

• Electronic commerce
• technology adoption
• small firms
• online trading
• securities market
• business strategy
• management commitment

Additional information

Notes on contributors

Patrick Y P Chan

Pak Yuen Patrick Chan received his Masters of Commerce (Honours) degree in Information Systems from the University of Canterbury. He currently works as a programmer for the Applied Technology Center, Hong Kong University of Science and Technology.

Annette M Mills

Annette M Mills is a Senior Lecturer in Information Systems with the Department of Accounting, Finance and Information Systems at the University of Canterbury (New Zealand). She holds a PhD in Information Systems from the University of Waikato. Her research interests include technology adoption, electronic commerce, IT investments, IS education, and IT in developing countries.