Diffusion of Virtual Innovation

Transcription

1 Diffusion of Virtual Innovation Mark A. Fuller Washington State University Andrew M. Hardin University of Nevada, Las Vegas Christopher L. Scott Washington State University Abstract Drawing on Rogers diffusion of innovations theory, specifically his innovation decision process model, this paper develops a research framework that identifies the accelerators and inhibitors of virtual world technology adoption. Categorized by level of analysis, specific factors influencing the adoption of virtual world technology by organizations are identified. At the individual level of analysis, factors such as the technology s ease of use and usefulness, as well as the individual s computer selfefficacy, trust, and enjoyment are discussed in terms of their bottom-up influence on technology diffusion. At the group level of analysis, different forms of group efficacy (such as computer collective efficacy and virtual team efficacy) are suggested to play a role in virtual world technology adoption and diffusion. Further, group-level technology acceptance factors (including a priori beliefs and attitudes toward the technology, as well as psychosocial variables) are proposed to influence a group s overall valence toward the technology, driving the adoption of the technology Finally, at the organizational level of analysis, technical compatibility, technical complexity, and relative advantage are explored as major factors influencing an organization s willingness to adopt virtual world technology through top-down diffusion that follows specific isomorphic processes. Finally, the role of organizational culture is also discussed. Through the identification and discussion of innovation diffusion factors which occur at different levels of analysis and at different stages of the innovation decision process, this study provides a framework for studying the adoption, spread, and continual use of virtual world technology. ACM Categories: H.4.2, H.4.3, H.5, K.4.3 Keywords: Computer Self-Efficacy, Diffusion of Innovations, Innovation Decision Process, Second Life, Technology Acceptance, Technology Adoption, Trust, Virtual Teams, Virtual Team Efficacy, Virtual World Technology. Introduction The diffusion of technology literature provides a theoretical framework within which we might identify possible accelerators and inhibitors to virtual world technology (VWT) adoption. Developing theoretical frameworks that explain VWT adoption are important as multinational corporations such as IBM have embarked upon the development of proprietary virtual world technologies (VWT) to facilitate collaboration and training (Reuters, 2006). In the The DATA BASE for Advances in Information Systems 40 Volume 38, Number 4, November 2007

2 interim, firms are developing their own virtual properties in publicly available virtual worlds such as Second Life to reap the benefits of conducting realworld business in these environments (Hof, 2006). Considering the nature of virtual world technologies from gaming to social networking to its use as an organizational communication channel and more the opportunity exists to examine adoption of this technology from multiple perspectives. This paper examines how individual, group, and organizational factors may influence the adoption and diffusion of virtual world technology. Technology Adoption and Diffusion In Rogers diffusion of technologies (1995), two basic paradigms of adoption are believed to occur: bottom up adoption (where individual adoption diffuses across other individuals) and top down adoption (where organizational factors influence technology use). Rogers also proposes an Innovation Decision Process whereby innovative technologies are adopted and diffused following a 5- stage model. During the first stage, potential adopters must become aware of the technology and develop minimal-level knowledge. Following an understanding of the technology, the potential adopter is open to being persuaded that the technology holds value. The potential adopter then makes a decision to adopt or reject the technology. If the choice is for adoption, the technology must be put into practice, or implemented. Following implementation, the adopter then seeks support for the adoption decision in the form of confirmation that the decision was a correct one. We argue that at each stage of the Innovation Decision Process, specific individual, group, and organizational factors may serve as accelerators or inhibitors to VWT adoption. Individual-Level Inhibitors and Accelerators The individual-level adoption of virtual world technology is consistent with the bottom-up diffusion of technology. Thus, micro-level theoretical perspectives should be applied to the study of individual-level adoption of virtual world technology to better understand how individuals make initial adoption decisions. The theory of reasoned action (TRA) is one prominent theoretical perspective that may hold some promise in this regard. Specifically, TRA suggests that beliefs and attitudes act as drivers of behavioral intentions and behaviors (Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980). In the context of technology adoption, prior research has focused on how individual-level beliefs such as ease of use and usefulness serve as direct antecedents to the intention to use technology (Davis, Bagozzi, & Warshaw, 1989). However, in virtual world contexts, given the greater level of user development afforded by the technology, other beliefs and attitudes may also play a role in the adoption of the technology. For example, users may be less concerned with the ease of use and usefulness of the technology for completing their daily tasks than with the features embedded in virtual world technology that allow them to customize content. Further, we believe that VWT adoption may also be influenced by the pleasure or enjoyment the user finds in interacting in these virtual worlds. For example, individuals may choose to use these technologies for collaborative purposes simply because they enjoy interacting with others in virtual worlds rather than because of any inherent characteristics that render the technology more or less useful for collaborative tasks. Supporting this notion, many publicly available VWTs have been developed as variants of massively multi-player online games and have gained popularity through the inclusion of such features as virtual lounges, beach resorts, shopping malls, and nightclubs. The creation of sophisticated avatars may make VWT more enjoyable by illustrating the user s unique skills and personality. Further, the ability to customize meeting areas where team members can interact before, during, and after business initiatives may also increase the enjoyment associated with using VWT. For example, organizational users can create customized meeting areas where a user s avatar can collaborate with team members while sipping drinks and enjoying popular music (as if they were meeting as a group in a real-world establishment). Given the complexity associated with virtual world technology, diffusion of these technologies may also be driven by the user s ability to adapt to these innovative environments. For example, factors such as computer self-efficacy (Compeau & Higgins, 1995, identify computer self-efficacy as a belief in one s ability to use a technology) may be important in predicting user adoption given the high level of skill needed to develop content in these environments. Further, given the innovative and creative nature of virtual world technology, factors such as creative self-efficacy (Tierney & Farmer, 2002, identifies creative self-efficacy as the belief in the competency in creative and innovative tasks), and personal innovativeness (identified as the willingness of individuals to experience new technology by Agarwal & Prasad, 1998) may also help explain individual level adoption decisions. Finally, factors such as trust (see for example, The DATA BASE for Advances in Information Systems 41 Volume 38, Number 4, November 2007

3 McKnight, Choudhury, Kacmar, 2002, who developed a model of trust in an e-commerce environment) may also be a critical factor in the individual adoption of virtual world technology. Considering the emergent nature of virtual world technologies and their associated pseudoanonymous environment, users trust in virtual world technology providers (e.g., Second Life) to safeguard their real-life information may serve as either an inhibitor or accelerator to virtual world technology adoption. Further, many virtual world environments use currency that is worth real-world money, thus users may more quickly adopt the technology if they trust the provider to maintain the integrity of commerce within the virtual world environment. In organizational environments where proprietary VWT are utilized, trust in management to keep information secure may also inhibit or accelerate adoption. Examining trust in the context of virtual world technology adoption will thus likely be a rich area for research considering the number and character of possible trust referents both real and virtual. Group-Level Inhibitors and Accelerators Group-level inhibitors and accelerators as they relate to Rogers s diffusion of innovations may be seen as influenced simultaneously by individuallevel adoption (bottom-up) and organizational adoption (top-down). The adoption of virtual world technology by groups is related to individual-level adoption decisions, as groups are composed of individuals; however, factors unique to groups may help further explain how virtual world technology is diffused. For example, computer collective-efficacy and virtual team-efficacy are two group-level factors that have been tied to technology use and group performance in related technologies that support group interactions (Fuller, Hardin, & Davison, 2007; Hardin, Fuller, & Davison, 2007; Hardin, Fuller, & Valacich, 2006). Given the complexity of virtual world technology, we expect these two types of group-efficacy beliefs will influence a group s willingness to adopt virtual world technologies in a manner similar to the influence of computer selfefficacy on the adoption of virtual world technology by individuals. Other research has also established specific variables influencing group-level technology adoption decisions. For example, Sarker, Valacich, and Sarker (2005) have suggested a complex interplay between individual-level and group-level technology acceptance factors responsible for the adoption of technology by groups. Specifically, individual group members a priori beliefs and attitudes toward the technology, when combined with psychosocial variables (e.g., opinions of highstatus group members and majority support within the group, technological complexity, transferability, and utility) influence a group s overall valence toward the technology, which drives the adoption of the technology by the group (Sarker et al., 2005). As with the individual factors above, these group-level factors will play a role in the various stages of Rogers s innovation-decision process model. Organizational-Level Inhibitors and Accelerators At the organizational level, the three most important factors that influence an organization s willingness to adopt a new technology are technical compatibility, technical complexity, and relative advantage (Agarwal & Prasad, 1998; Cooper & Zmud, 1990). Technical compatibility refers to the appropriateness of the technology for the task for which it is contemplated. Thus, organizations with a need for virtual collaboration may more quickly adopt virtual world technology, given its recognized ability to support distance collaboration (Reuters, 2006). Complexity refers to the idea that the technology should not be too difficult to adopt. Thus, recognizing the utility of open source, publicly available virtual world environments may speed organizational adoption. Finally, relative advantage suggests that the technology to be adopted has some advantage over alternative technologies. Thus, organizations that recognize publicly available virtual world technology as a low-cost means for distance collaboration, accessing new customers, marketing, and the like will be more likely to adopt the technology. Isomorphic factors which refer to the tendency of one organization to resemble other organizations (DiMaggio & Powell, 1983, p. 149) should also influence organizational adoption of virtual world technologies. Three types of isomorphism have been theorized to influence organizational adoption of various technologies. Coercive isomorphism refers to an organization s changing to reflect changes made at other organizations upon which [the organization] is dependent (DiMaggio & Powell, 1983, p. 150). Thus, as organizations (e.g., IBM, Circuit City, Sears) adopt virtual world technology, other business may be forced to adopt the technology to continue doing business with them. Mimetic isomorphism refers to an organization s mimicking another organization because of uncertainty. If an organization is uncertain about whether to adopt a new technology, but another organization appears to be successful with the new technology, the uncertain organization may model The DATA BASE for Advances in Information Systems 42 Volume 38, Number 4, November 2007

4 the referent organization in hopes of being successful as well. This form of isomorphism appears to be particularly relevant to the adoption of virtual world technology since only a few organizations appear committed to its adoption. If organizations such as IBM are successful in utilizing VWT for business purposes, other organizations will likely attempt to model that success. Normative isomorphism refers to an organization s resembling other organizations as a result of professionalization. The more common the background of the individuals that make up the organization, the more isomorphic the organizations will be. As organizational users become familiar with virtual world technology through individual use, they may spread the adoption of the technology to the organizations at which they are employed. Therefore, to accelerate the organizational adoption of virtual world technology, human resource managers should employ those who have prior experience using the technology. Organizational culture plays a critical role in the acceleration of virtual world technology adoption. An organization s willingness to embrace open-source initiatives, such as that provided by publicly available virtual world technology, will fuel its adoption. Thus, young, innovative, risk-accepting companies appear most likely to adopt virtual world technology in its emergent stages. However, as IBM demonstrates, large, well-established companies with innovative cultures may also be willing to adopt virtual world technology. As with the individual- and group-level factors above, organizational adoption factors will play a role in the various stages of Rogers s innovation-decision process model. We believe that the identification of individual, group and organizational level inhibitors and accelerators hold considerable promise for explaining the adoption of virtual world technology. Perspectives such as the diffusion of technology help build theoretical frameworks around these factors. References Agarwal, R., and Prasad, J. (1998). A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology, Information Systems Research, Vol. 9, No.2, pp Ajzen, I., and Fishbein, M. (1980). Understanding Attitudes and Predicting Social Behavior, Englewood Cliffs, NJ: Prentice-Hall. Compeau, D.R., & Higgins, C. A. (1995). Computer Self-Efficacy: Development of a Measure and Initial Test, MIS Quarterly, Vol. 19, No.2, pp Cooper, R.B., and Zmud, R.W. (1990). Information Technology Implementation Research: A Technological Diffusion Approach, Management Science, Vol. 36, No.2, pp Davis, F.D., Bagozzi, R.P., & Warshaw, P. R. (1989). User Acceptance of Computer Technology: A Comparison of Two Theoretical Models, Management Science, Vol. 35, No.8, pp DiMaggio, P.J., and Powell, W.W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields, American Sociological Review, Vol. 48, No.2, pp Fishbein, M. and Ajzen, I. (1975). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, Reading, MA: Addison- Wesley. Fuller, M. A., Hardin, A.M., and Davison, R.M. (2007). Efficacy in Technology-Mediated Distributed Teams, Journal of Management Information Systems, Vol. 23, No.3, pp Hardin, A. M., Fuller, M. A., and Davison, R. M. (2007). I Know I Can, but Can We? Culture and Efficacy Beliefs in Global Virtual Teams, Small Group Research, Vol. 38, No.1, pp Hardin, A.M., Fuller, M.A., and Valacich, J. (2006). Group Efficacy in Virtual Teams: New Questions in an Old Debate, Small Group Research, Vol. 37, No.1, pp Hof, R.D. (2006). My Virtual Life, Business Week Retrieved May 15, 2007, from /06_18/b htm?chan=search McKnight, D.H., Choudhury, V., and Kacmar, C. (2002). Developing and Validating Trust Measures for E-Commerce: An Integrative Typology, Information Systems Research, Vol. 13, No.3, pp Reuters, A. (2006), IBM accelerates push into 3D virtual worlds, Reuters, Retrieved April 19, 2007, from bm-accelerates-pushinto-3d-virtual-worlds/ Rogers, E.M. (1995). Diffusion of Innovations. New York: Free Press. Sarker, S., Valacich, J.S., and Sarker, S. (2005). Technology Adoption by Groups: A Valence Perspective, Journal of the Association for Information Systems, Vol. 6, No.2, pp Tierney, P., and Farmer, S.M. (2002). Creative Self-Efficacy: Its Potential Antecedents and Relationship to Creative Performance, Academy of Management Journal, Vol. 45, No.6, pp The DATA BASE for Advances in Information Systems 43 Volume 38, Number 4, November 2007

5 About the Authors Mark A. Fuller is the Chair of the Department of Information Systems at Washington State University, and holds the Philip L. Kays Distinguished Professorship in Information Systems. His research focuses on virtual teamwork, and trust in technologymediated environments, and has appeared in outlets such as Information Systems Research, Management Information Systems Quarterly, and the Journal of Management Information Systems. Andrew M. Hardin is an assistant professor of management information systems at University of Nevada, Las Vegas. His research focuses on virtual teamwork, human-computer interaction, and virtual world technology, and has appeared in outlets such as Journal of Management Information Systems, Small Group Research, and Group Decision and Negotiation. Christopher Scott is currently a PhD student in the Department of Information Systems at Washington State University. His research interests include media perceptions and effects on communication effectiveness, innovation and creativity, and IT project escalation. The DATA BASE for Advances in Information Systems 44 Volume 38, Number 4, November 2007