Development of a guidance model for the use of digital technology by service organizations

University of Amsterdam

Faculty of Science

Thesis Master Information Science

Business Information Systems

Development of a guidance model

for the use of digital technology

by service organizations

Author:

Saskia Maren Garbe

Student number:

10865365

Supervisor:

Dr. Dick Heinhuis

Signature:

Second examiner:

Dhr. Drs. A.W. Abcouwer

Signature:

Acknowledgements

At this point I would like to thank some special people.

A special thank you to my family and friends for always supporting me.

My thanks also go to my supervisor, Dr. Dick Heinhuis, for his constant support and constructive advice.

Abstract

In the service industry, the importance of digital technology for organizations and the customer’s demand for personal contact are in conflict with each other. This raises the question if the development of a model for the usage of digital technology is possible.

In order to approach this conflict, the technology acceptance on the part of the customer was investigated. From this, the UTAUT model was selected to describe the technology acceptance. With the aim of going towards a solution of the conflict, a guidance model was developed, which takes both digital technology and personal customer contact into account. Finally, this model was empirically tested in the field. For this purpose, qualitative research was conducted, using both semi-structured interviews and a questionnaire survey.

The results show that the model gives guidance to an efficient and customer friendly usage of digital technology by service organizations. The following propositions were confirmed and considered in the model: (1) Digital technology is likely to be accepted by the customers for unified solutions, (2) Digital technology is unlikely to be accepted by the customers for customized solutions, and (3) Digital technology can be used as assistant systems for customized solutions.

Table of Contents

Acronyms

V

List of figures

V

List of tables

V

1. Introduction

1

1.1. Digital technology in economy 1

1.2. Problem statement 1

1.2.1. Context of the service industry 1

1.2.2. Problem 2

1.3. Research question 2

1.4. Thesis design 3

2. Theoretical background

3

2.1. Technology acceptance models 4

2.1.1. TAM 4

2.1.2. IS Success Model 6

2.1.3. Task Technology Fit 8

2.1.4. UTAUT 10

2.2. Selection of a model 11

2.3. Referring the selected model to the service industry 12

2.4. Guidance model 13

2.4.1. Unified vs. customized solutions 13

2.4.2. Summary 14

3. Results

15

3.1. Testing in the field 15

3.1.1. Term definition 15

3.1.2. SMEs in Germany 16

3.2. Research design 16

3.2.1. Semi-structured interviews 16

3.2.2. Survey questionnaire 18

3.3. P#1: Digital technology is likely to be accepted by the customers for unified solutions 19

3.3.1. Identification of unified schemes 19

3.3.2. Solutions to unified schemes 20

3.3.3. Examples for unified solutions 21

3.4. P#2: Digital technology is unlikely to be accepted by the customers for customized

solutions. 22

3.4.1. Individual customer problems 22

3.4.2. Customized solutions 23

3.4.3. Additional unrecognized problems 24

3.5. P#3: Digital technology can be used as assistant systems for customized solutions 25

4. Discussion

28

4.1. Summary 28 4.2. Limitations 28 4.3. Future work 28

References

VI

Appendix

XII

A. Interview protocol XII

B. Interview main questions XIII

C. Interview data XIV

Interview 1 XIV

Interview 2 XVIII

Interview 3 XXII

Interview 4 XXV

Interview 5 XXVIII

D. Survey design XXXII

E. Survey respondents overview XXXIII

Acronyms

COG DT Cognitive Model Digital technology ECM ERP

Expectation Confirmation Model Enterprise Resource Planning

IS Information Systems

PSF Professional Service Firm

PEU Perceived Ease of Use

PU Perceived Usefulness

RQ Research Question

SQ Sub Question

TAM Technology Acceptance Model

TRA Theory of Reasoned Action

TTF Task Technology Fit Model

UTAUT Unified Theory of Acceptance and Use of Technology

List of figures

Figure 1. Line of reasoning of this thesis. ... 3

!

Figure 2. Basic concept for technology acceptance models. ... 4

!

Figure 3. TAM model. ... 5

!

Figure 4. IS Success Model. ... 7

!

Figure 5. IS Success Model. ... 7

!

Figure 6. Task Technology Fit Model. ... 8

!

Figure 7. Updated TTF Model. ... 9

!

Figure 8. UTAUT model. ... 10

!

Figure 9. Guidance model for PSFs on digital technology usage. ... 13

!

List of tables

Table 1. Key constructs of UTAUT. ... 11

!

Table 2. Determinants and respective conflicts. ... 12

!

Table 3. Thresholds for SMEs. ... 15

!

Table 4. Unified solutions and technology acceptance. ... 21

!

Table 5. Examples of unified solutions. ... 22

!

1. Introduction

1.1. Digital technology in economy

Following current literature the effects of digital technologies on the economy are frequently discussed and examined with various approaches from different fields of study.

Digital technology is defined as “technology that relies on the use of microprocessors; hence, computers and applications that are dependent on computers such as the Internet, as well as other devices such as video cameras, and mobile devices such as phones and personal-digital assistants” (Khosrow-Pour, 2013). Due to the omnipresent importance of computers, Brynjolfsson and McAfee (2012[1]) use the economic term general purpose technologies, so “a small group of technological innovations so powerful that they interrupt and accelerate the normal march of economic process”. In the sense of Moore’s Law, the use of digital technology is constantly increasing.

As pointed out by Brynjolfsson and McAfee (2012 [1]), the impact caused by the increasingly influential technologies should be considered relevant in contemporary economy and thus society. The increasingly powerful use of digital technologies in general can be identified as a major drive behind changes in nowadays economy (Brynjolfsson et al., 2012 [2]).

The increasing relevance of digital technology in economy resulted in various responses on the part of the organizations. Since the outcomes of the constant technological progress offer various opportunities and challenges, the organizations need to remain cautious in selecting its investments.

The use of digital technology can be challenging to some extent. Especially the service industry is concerned. The personal customer contact claims significantly high relevance in the service industry. The client is integrated in the delivery process as a decisive external factor, which is necessary for the service completion. The reciprocal information flow on a personal basis between the two components service provider and client is an indispensible component of the service. Accordingly, professional services are generally characterized by a high relation-intensiveness. (Kaiser et al., 2010) The customer is closely involved in the process, acting like a “temporary employee” (Fitzsimmons et al., 2006).

1.2. Problem statement

Considering the usage of digital technology as challenging in the service industry raises the question about the specific characteristics of this industry, which cause the aggravating circumstances.

1.2.1. Context of the service industry

Regarding nowadays economy, the service industry becomes increasingly important from a global perspective (Kelle, 2013). The service industry is considered to “include all economic activities whose output (1) is not a product or construction, (2) is generally consumed at the time it is produced, and (3) provides added value in forms (such as convenience amusement, timeliness, comfort, or health) that are essentially intangible concerns of its purchase” (Quinn, 1988).

1.2.1.1. Digital technology in the service industry

In general, economic rationalism is the basic principle of organizations (Wöhe, 2010). According to the economic principle, organizations aim for an economic state, which is characterized by the optimal allocation of resources. This allows the reduction of waste and inefficiency.

Digital technology is gaining increasing relevance not only in the economy in general but also in the service industry in particular. There is a general tendency of service organizations towards

an increasing usage of digital technology. Reasons for this shift are increasing efficiency, cost-effectiveness and quality. (Froehle et al., 2004)

1.2.1.2. Customer contact in the service industry

As pointed out by David and Dorn (2013), services “rely heavily on dexterity, flexible interpersonal communication, and direct physical proximity”. Davis (1999) claimed that “relations with clients or customers tend to be closer, more personal, and more intense […] Competent medical care, legal representation, and financial advice are crucial to most people. Clients want to deal with particular specialists whom they know and trust”.

The concept of customer contact has been considered an important aspect of service operation management for decades (Chase, 1978). Soteriou et al. (1998) emphasize the essential importance of customer contact for the service industry. Furthermore, they linked customer contact with service quality. Aiming at high customer satisfaction and quality, service organizations need to take the importance of service encounters into consideration. In contrary to the manufacturing industry, the service delivery requires the linkage of the service organization and the customers. The close cooperation between the service provider and the client is defined as a mayor feature of services.

1.2.2. Problem

Throughout the aforementioned context of the service industry, two essential features became obvious. To begin with, the use of digital technology is of importance in order to improve the efficiency of organizations. At the same time, the customer contact plays a significant role in the service.

The customer’s role in the business is affected by the use of digital technology. This requires that the customers accept the digital technology as part of the service. The technology user acceptance on the part of the customer, the so-called “temporary employee” (Fitzsimmons et al., 2006), is essential.

So, the use of digital technology in the service industry, where the customers and their user acceptance is of crucial importance, is problematic. On the one hand the service provider strives to increase the corporate economic efficiency by using digital technology. On the other hand the customer appreciate personal contact. These two interests are in conflict with each other.

1.3. Research question

Thus, the following research question evolves:

To what extent is the development of a model possible, which provides guidance for the use of digital technology in the service industry?

In order to answer the mayor research question, the following sub questions are composed:

(1) What are the reasons that the use of digital technology creates conflicts in the service industry?

(2) What are components of the guidance model?

(3) To what extent is it possible to empirically test the guidance model?

The practical relevance of this research is based on the topicality and importance of digital technology. The efficient and proper use of digital technology plays a significant role for service organizations. This thesis improves the understanding of technology acceptance on the part of the customer, which is helpful and necessary for service organizations. The results of this study provides deeper insights to service organizations, especially to Professional Service Firms (PSFs).

Additionally, this research is of academic relevance. By researching the information systems literature, particularly technology acceptance, this thesis contributes to the understanding of technology acceptance theories. Different technology acceptance models are explained and discussed. Moreover, a guidance model is developed to approach the conflict between digital technology and personal customer contact, which will be discussed in the next chapters. This model does not only take into consideration related literature, but it is tested and validated in the field. This is enriching for the information systems literature, which is expanded by the proposed guidance model.

1.4. Thesis design

The service industry contains a wide range of different services (Fitzsimmons et al., 2006). In order to examine services, which are heavily affected by this conflict, the scope of this thesis is narrowed down to the so-called professional service firms (PSF).

This kind of enterprise includes all services, “which require direct contact of provider and consumer and which appear mainly intangible prior to, during and after the contact” (Kaiser et al., 2011). According to Kaiser et al. (2011) PSF “have made it their business to work on unstructured problems for their clients”. Knowledge claims a crucial importance in this context, since the expert knowledge, the experience, and the problem-solving competence is required rather than machines (Alvesson, 1994).

In order to answer the first sub question a literature review is conducted, which considers relevant related literature. This provides the theoretical background of this thesis. After that, in order to answer the second sub question, a guidance model is developed. Subsequently, it is tested in the field for the purpose of answering the third sub question. Semi-structured interviews as well as a survey questionnaire are performed. Then, the results of the testing are presented and discussed.

This thesis follows the line of reasoning, which is depicted in figure 1.

Figure 1. Line of reasoning of this thesis.

2. Theoretical background

In order to answer the first sub question, which is “What are the reasons that the use of digital

technology creates conflicts in the service industry?”, a literature review was conducted to gather

information about the developments in this area. Related literature was reviewed and evaluated. The scope of the literature review is in conformity with the problem statement. Due to a conflict between the interests of the service provider and the customer the user acceptance on the part of the customer is put in question. The investigation of technology acceptance is given high attention in the information systems (IS) literature. Thus, the IS literature will be researched to identify determinants of the acceptance and use of technology.

Over the last decades various different technology acceptance models concerning the adoption of technology were developed. First of all, the literature was researched for available technology acceptance models and their applications and extensions. After that, the findings were structured,

which lead to the following categories: Technology Acceptance Model (TAM), IS Success Model, Task Technology Fit Model, and Unified Theory of Acceptance and Use of Technology (UTAUT). The majority of applications and extensions found in literature could be assigned to those categories. This showed the relevance of those concepts, which is why this thesis focused on them.

2.1. Technology acceptance models

Regardless of differences, the technology acceptance models share a basic concept (Venkatesh et al., 2003). Venkatesh et al. (2003) presented this basic concept as shown in figure 2.

Figure 2. Basic concept for technology acceptance models.

Accordingly, the individual reactions to the use of information technology influence the actual use of information technology twofold: directly and via the intentions to use information technology. The actual use of information technology has an impact on the individual reactions to the use of digital technology in return. This basic concept underlies the individual acceptance of information technology.

2.1.1. TAM

2.1.1.1. Definition

Davis (1989) introduced the Technology Acceptance Model, in short TAM. This information system theory aims at predicting user acceptance of computers. As the author considers valid measurements scales rare he presented new scales for two variables, that are, Perceived Usefulness and Perceived Ease of Use. Davis identified these variables as decisive determinants for user acceptance, which will be explained in more detail in this section.

Regarding the theoretical foundations the model is based on the Theory of Reasoned Action (TRA) and the Theory of Planned Behavior (TPB). The TAM model is an influential extension of these two essential theories in the literature.

As depicted in figure 3, the variables Perceived Usefulness (PU) and Perceived Ease of Use (PEU) are important for the user acceptance. These variables are defined as follows:

• Perceived Usefulness. “The degree to which a person believes that using a particular system would enhance his or her job performance.” Following the definition of the term

useful, which is “capable of being used advantageously”, a positive use-performance

relationship should be achieved. (Davis, 1989)

• Perceived Ease of Use. “The degree to which a person believes that using a particular system would be free of effort.” In this context, Davis referred to the definition of ease, which means “freedom from difficulty or great effort”. Accordingly, the perceived ease of use of information systems decides on the use (Davis, 1989)

Figure 3. TAM model.

2.1.1.2. Applications

The TAM has been applied in various research contributions, inter alia:

• Höltl and Trommer (2013) applied TAM for user acceptance of driver assistance systems. A European-wide study in the form of a questionnaire was conducted, resulting in 5,087 responses. Relevant effects between acceptance factors and the influencing variables were revealed.

• Szajna (1996) empirically tested TAM and introduced an objective measure of technology acceptance. The results showed that TAM can be considered valuable to predict intentions to use an IS. 61 fall graduate business students served as a sample.

• Adams et al. (1992) replicated prior work of Davies (1989) about PU, PEU, and usage of information technology. Two studies were conducted with 118 survey responses from the first and 73 responses from the second study. The results confirmed the importance of the three model components.

2.1.1.3. Extensions

• Cheung et al. (2013) extended TAM for eLearning for the prediction of user acceptance of collaborative technologies. A survey among students with 136 responses was conducted. The results showed that the determinants of TAM are the most significant factors, which affect the technology adoption.

• Gu et al. (2009) investigated the determinants of behavioral intention to mobile banking. Their research model is based on the extended TAM and the trust-based TAM (Gefen et al., 2003). With the help of a structural equation modeling the proposed model is tested, which revealed a strong support for its validity.

• Alsajjan and Dennis (2009) examined consumers’ acceptance of Internet banking and proposed a revised TAM. This is to measure consumers’ acceptance of Internet banking. From a questionnaire among university students the data of 618 respondents was gathered. The importance of attitude became obvious.

• Liu (2009) extended the TAM to explore educational wikis. On the basis of the social cognitive theory and the TPB new variables were added, namely self-efficacy, online posting anxiety, and perceived behavioral control. Qualitative and quantitative researches (online interview and online survey) were conducted. The results revealed a relevant direct and indirect impact on wiki usage in the classroom.

• After having compared the TAM, the Expectation-Confirmation Model (ECM) and the Cognitive Model (COG), Liao et al. (2009) synthesized the constructs of the three models to the Technology Continuance Theory (TCT). The constructs attitude and satisfaction are combined. A survey was carried out to test the three models (TAM, ECM, COG) and their hypotheses. TCT was found to provide an improved applicability and explanatory power. • Venkatesh and Bala (2008) came to TAM3, drawn from the numerous research contributions

were carried out to test the model, collecting data from four organizations. The results contribute to the management of IT implementation for organizations.

• Gallego et al. (2008) introduced a User Acceptance Model of OSS (open source software), which is a TAM model with regard to the individual attitude toward OSS adoption. A survey was performed, producing 347 valid responses. The results revealed that OSS can serve as a solution for information management for organizations.

• Hansen (2006) developed a model examining consumers’ repeat online buying groceries. A web-based survey was conducted collecting data from 198 consumers. The results showed that consumers’ attitude towards online grocery buying is influenced by the model components to some extent.

• Wu (2006) introduced a revised TAM for End User Computing Acceptance, adopting TAM and Task Technology Fit Model (TTF). The empirical testing involved 27 interviews and 100 questionnaires. The model contributes to the understanding of end user computing acceptance. • Wu and Wang (2005) examined the determinants of user mobile commerce acceptance by

introducing a revised TAM. They integrated Innovation Diffusion Theory, perceived risk, and cost into the TAM. A survey among mobile commerce consumers was conducted for the empirical testing. Wu and Wang found that except for perceived ease of use, all variables influenced users’ behavioral intention with compatibility as the most significant variable. • Van der Heijden (2004) examined user acceptance of hedonic information systems. Since TAM

was developed for workplace settings, he expanded the model by perceived enjoyment. A survey was carried out to test the revised model. It was found that perceived enjoyment and PEU were more influential than PU.

• Karahanna and Limayem (2000) researched the e-mail and v-mail usage by expanding the TAM. This is for the purpose of incorporating antecedents of PU and PEU. They tested the model for the e-mail and v-mail usage in the same organization by the means of a questionnaire. This showed that the antecedents of e-mail and v-mail usage differ significantly.

• Igbaria et al. (1996) proposed a Motivational Model of Microcomputer Usage by referring to TAM, TRA, and Deci’s (1975) distinction between extrinsic and intrinsic motivation. They stated that PU, perceived enjoyment, and social pressure would support the usage of microcomputers by professionals and managers. These three motivational factors were determined. Regarding their results PU should be considered the most influential motivator. • Numerous other studies researched TAM in different contexts (e.g. Chang et al., 2009; Ahuja,

2005; Keen et al., 2004; Agarwal et al., 2000; Hubona et al., 1997; Hartwick et al., 1994; Davis et al., 1989).

2.1.2. IS Success Model

2.1.2.1. Definition

In 1992, DeLone and McLean (1992) introduced their Information System Success Model. This information systems theory measures the success of information systems.

The theory is based on Ives and Olson (1984) as well as on Zmud (1979). Zmud (1979) identified three categories of Management Information Systems (MIS) success, namely user performance, MIS usage, and user satisfaction. Ives and Olson (1984) reviewed studies of user involvement adopting two classes of MIS outcome variables, namely system quality and system acceptance. DeLone and McLean (1992) distanced themselves from these studies by differentiating between dependent and independent variables. They claimed that Ives and Olson as well as Zmud researched independent variables, while DeLone and McLean focused on the measurement of the dependent variable MIS success.

DeLone and McLean identified and explained six critical dimensions of success and their relationships with each other as presented in figure 3. This enables the evaluation of the success of information systems. According to DeLone and McLean (1992) these dimensions are the following: (1) System quality (“measures of the information processing system itself”), (2) Information quality (“measures of information system output”), (3) Information use (“recipient consumption of the output of an information system”), (4) User satisfaction (“recipient response to the use of the output of an information system”), (5) Individual impact (“effect of information on the behavior of the recipient”), (6) Organizational impact (“effect of information on organizational performance”).

Figure 4. IS Success Model.

In 2003, DeLone and McLean updated the model because of research, which had been conducted in the meantime. Aside from an identified shortage of empirical studies, the model is widely used and supported (DeLone and McLean, 2003). Compared to the first version, the dimension service quality is added. Moreover, the dimension “net benefits” includes the dimensions individual and organizational impact.

Figure 5. IS Success Model.

2.1.2.2. Applications

The IS Success Model has been applied in various other research contributions, inter alia:

• Hasselberg et al. (2014) applied the IS Success Model to the image-based medical expert teleconsultation. In this context, the model was used as a framework. In general, positive results were the outcome.

• Edlund (2012) applied the IS Success Model to the role of system administrators. The affect of system administrators on IS success in an implemented IS was investigated. A single case study was conducted by collecting data through three interviews and a questionnaire, which produced 42 responses. The results indicated a system administrator’s affect on the IS quality dimensions of the IS Success Model.

• Wang (2008) applied the IS Success Model to validate the updated version of the model (2003) by assessing e-commerce systems success. The data was collected by a questionnaire with 240

responses. Structural equation modeling techniques were used. The results showed the affect of Perceived value and User satisfaction on the intention to reuse. Information quality, System quality, and Service quality affect Perceived value and User satisfaction.

2.1.2.3. Extensions

• Keramati and Salehi (2012) conducted a website success comparison in the context of e-recruitment. They extended the updated IS Success Model. A survey in the form of an online questionnaire was conducted, producing 383 responses. The results showed the effectiveness of ANP as a tool.

• Bernroider (2008) investigated the role of IT governance for the success of ERP projects. A model was developed on the basis of the IS Success Model. The research was based on a survey, randomly distributed and resulted in a sample of one thousand firms.

2.1.3. Task Technology Fit

2.1.3.1. Definition

Goodhue and Thompson (Goodhue, 1995) introduced the Task Technology Fit Model (TTF), which is a user evaluation construct. The degree to which system characteristics and user task needs match is in the focus of this model. The model declared that the higher the task technology fit, the better the performance. The assertion was made that “for an information technology to have a positive impact on individual performance, the technology: (1) must be utilized and (2) must be a good fit with the tasks it supports”. The core features are described as follows:

• Technologies. This refers to the tools, which individuals use in order to carry out their tasks.

• Tasks. This refers to the actions, which individuals carry out in order to turn input into output.

• Individuals. Individuals carry out tasks with the help of

• Task Technology Fit. This is defined as the “degree to which a technology assists an individual in performing his or her portfolio of tasks” (Goodhue, 1995).

Figure 6. Task Technology Fit Model.

The model was updated (Goodhue et al., 1995) as depicted in figure 6. Utilization is added to the model, which is defined as the “behavior of employing the technology in completing tasks” (Goodhue et al., 1995).

Figure 7. Updated TTF Model.

2.1.3.2. Applications

The TTF has been applied in various research contributions, inter alia:

• D’Ambra et al. (2010) applied the TTF to the structuring and evaluation of the adoption of e-books by academics. The model was tested using an online survey. The findings revealed a positive impact of TTF on individuals’ use and performance as well as impact of e-book use on the individual performance.

• McGill and Klobas (2009) investigated the learning success of learning management systems. They took the TTF as a framework in order to examine the impact of task technology fit on the performance of learning management systems. The results confirmed the importance of task technology fit.

2.1.3.3. Extensions

The TTF was extended in various research contributions, inter alia:

• Lu and Yang (2014) extended the TTF to social-technology fit by investigating the influence of task, social, and technology characteristics on users’ intentions in the usage of social networking sites. The TTF and the social capital theory are integrated. The constructs of intention to use and social characteristics were added to the TTF. An online questionnaire was performed, gathering data from 315 users. A dominant influence of the social-technology fit over the TTF was indicated.

• Yu and Yu (2010) combined the TTF with the TPB in order to model the factors, which affect individuals’ utilization of online learning systems. This Online Learning System Utilization Model is meant to predict the usage of those systems by understanding the behavior and perceptions of the learners. Data from 870 students was gathered in a survey questionnaire. The model has the potential to facilitate eLearning learner performance and to enhance the understanding of learner performance in online learning environments.

• Lin and Huang (2006) examined factors, which have an impact on the use of knowledge management systems. They integrated TTF and social cognitive theory in order to identify the key factors for the use of knowledge management systems. A survey with 162 responses identified the importance of task interdependence, perceived task technology fit, knowledge management systems self-efficacy, and personal outcome expectations and their impact on knowledge management systems usage.

• Maruping and Agarwal (2004) researched the management of team interpersonal processes through technology. They developed a theoretical model on the basis of TTF and media synchronicity theory. They considered a temporal dimension in the model and found that the team’s development stage decides on the communication needs.

• In 1999 Dishaw and Strong (1999) proposed an integrated TAM/TTF model, extending the TAM with TTF constructs. Combining the two models was found to surpass their individual significance. Data was collected using questionnaires.

2.1.4. UTAUT

2.1.4.1. Definition

Venkatesh, Morris, Davis and Davis (2003) developed the Unified Theory of Acceptance and User

of Technology (UTAUT) through a review of prior models, which are: TRA, TAM, Motivational

Model, TPB, Model of Computer Utilization, Innovation of Diffusion Theory, Social Cognitive Theory, and a combined TPB/TAM model. UTAUT is created for the explanation of usage behavior as shown in figure 8. The model was originally developed for organizational settings explaining employee technology acceptance and use.

Figure 8. UTAUT model.

There are four key constructs, which are defined by Venkatesh et al. (2003) as presented in

table 1 (performance expectancy, effort expectancy, social influence, facilitating conditions). Also,

there are four moderating variables (gender, age, experience, voluntariness of use). These moderating variables can increase or decrease the impact of the four key constructs on the behavioral intention and behavior.

Construct Definition

Performance expectancy “The degree to which an individual believes that using the system will help him or her to attain gains in job performance.” (Venkatesh et al., 2003) Effort expectancy “The degree of ease associated with the use of a system.” (Venkatesh et al.,

2003)

Social influence “The degree to which an individual perceives that important others believe he or she should use the new system.”

Facilitating conditions “The degree to which an individual believes that an organizational and technical infrastructure exists to support the use of the system.” (Venkatesh et al., 2003)

Table 1. Key constructs of UTAUT.

2.1.4.2. Application

The UTAUT model has been applied in various other research contributions, inter alia:

•

Magsamen-Conrad et al. (2015) applied UTAUT to predict multigenerational tablet adoption practices. The survey with 899 respondents aged 19-99 revealed generational differences in the UTAUT determinants.

•

Liu et al. (2014) applied UTAUT to investigate what factors determine therapists’ acceptance of new technologies for rehabilitation. A self-administrated paper-based survey was conducted. Performance expectancy was found the most significant factor, while effort expectancy and social influence were found unimportant.

• Lallmahomed et al. (2013) applied UTAUT to “examine the relationship between the predictors of use and the different conceptualizations of system use in a hedonic volitional setting (Facebook)”. A cross-sectional survey of 449 students revealed the high influence of behavioral intention on the system use.

•

Lin et al. (2013) applied UTAUT to investigate the podcasting acceptance on campus by considering the differing perspectives of teachers and students. The results of the survey approach showed that students consider effort expectancy more important than teachers, while for facilitating conditions the exact opposite is the case.

•

Gruzd et al. (2012) applied UTAUT to examine the role of social media in research practices of faculty. For this purpose, 51 semi-structured interviews were held. Factors, which influence the intention and use of social media by scholars, were examined. UTAUT was found a useful tool in this context. An expansion of the model for this particular context was discussed.

• Im et al. (2010) applied UTAUT to conduct an international comparison of technology adoption. A survey was conducted collecting data from students and full-time employees in Korea and the United States. The results showed the usefulness of the UTAUT in this context.

2.1.4.3. Extension

The UTAUT model has been extended in various other research contributions, inter alia:

• Venkatesh et al. (2012) extended UTAUT to UTAUT2 by adding hedonic motivation, price value and habit as constructs to the model. It serves the purpose of studying the acceptance and use of technology in a consumer context. An online survey was performed to test the model. In comparison to UTAUT the variance explained in behavioral intention and technology use could be enhanced.

• Qingfei et al. (2007) proposed a revised UTAUT model for mobile commerce user acceptance in China by considering (1) characteristics of mobile commerce, (2) inclusion of IS user satisfaction theory, and (3) inclusion of the characteristics of Chinese culture.

2.2. Selection of a model

Various different influential technology acceptance models were discussed in the previous section of this thesis. This thesis is concerned about the acceptance of digital technology on the part of the customers of PSFs. So the question of which model can be applied in that case arises.

Regarding the findings, UTAUT is a highly spread model of technology acceptance and use. The model is a significant concept, which integrated eight major and prominent theories. Moreover, it was tested in real world contexts by numerous research contributions. Since its introduction it has been applied in various contexts and for different purposes (e.g. Magsamen-Conrad et al.,

2015; Liu et al., 2014; Lallmahomed et al., 2013; Lin et al., 2013; Gruzd et al., 2012; Im et al., 2010). The model is present in recent literature. Numerous research contributions proved its validity and explanatory power. UTAUT has been applied to research contributions in various settings (Venkatesh et al., 2012).

UTAUT has been extended for various purposes (e.g. Venkatesh et al., 2012; Quinfei et al., 2007). Venkatesh (one of the authors of UTAUT) himself participated in the development of a popular extension, namely UTAUT2 (Venkatesh et al., 2012). It is tailored to acceptance and use of technology in a consumer context. Other extensions are specifically tailored to their subject of research.

Considering the explanatory power of UTAUT in various different settings, this model is applied in this thesis. The selection of one of the extensions was not an option due to their special alignment on their subjects of research.

2.3. Referring the selected model to the service industry

Regarding digital technology as an option to increase the efficiency of a service, the technology acceptance on the part of the customers is put in question in PSF. Taking into account the determinants of the UTAUT model, there are potential conflicts with regard to digital technologies as shown in table 2.

Determinant Definition according to

Venkatesh et al. (2003)

Conflicts Performance

expectancy

“The degree to which a person believes that using the system will help him or her to attain gains in job performance.”

In case of unstructured problems, the customer cannot clearly define his or her issue. Then he or she cannot be sure if the performance of digital technology is optimized. The customer cannot be sure if there would be a more efficient solution for his or her issue.

Effort expectancy

“The degree of ease associated with the use of a system.”

In case of unstructured problems, the customer cannot clearly define his or her issue. Then it can take him or her relatively high effort to optimize the service use. Revisions of decisions might be necessary, which requires additional effort.

Facilitating conditions

“The degree to which an individual believes that an organizational and technical infrastructure exists to support the use of the system.”

In case of unstructured problems, the customer cannot clearly define his or her issue. If the customer needs support, he or she cannot be sure about whom to approach. Different infrastructures might be in place. Since the customer cannot clearly define his or her issue, he or she might struggle with finding appropriate support.

Table 2. Determinants and respective conflicts.

By identifying the conflicts, this thesis answered the first sub question about the reasons for conflicts in the service industry, created by digital technology. PSF have to deal with customer problems, which the customers themselves perceive to be unstructured. The customers are not able to clearly define their problems. This is the reason why the customers might reject the usage of digital technology in the first place. As described in table 2, the customers are unlikely to perceive the technology as easy to use, useful, and facilitated as long as the problems seem unstructured to them.

2.4. Guidance model

In order to answer the second sub question, which is “What are components of the guidance

model?”, a guidance model is developed to solve the conflicts (see table 2).

The model takes into consideration that the customers reject digital technology for unstructured problems. From the perspective of the PSF the customer problems might be less unstructured. Different customer problems could be approached by similar or even the same solutions to some extent. Unified solutions might be possible for common customer problems.

As shown in figure 10, this thesis provides guidance for the digital technology usage for PSF. It is meant to indicate an efficient and reasonable way to consider the importance of the customer and the digital technologies for the economic efficiency. In this way, the available resources can be used more efficiently.

2.4.1. Unified vs. customized solutions

Three resources are involved in the problem solution, which are service provider, service customer, and technology as shown in figure 10. The model distinguishes between unified and customized solutions, for which the available resources (service customer, service provider, digital technology) are used differently.

Figure 9. Guidance model for PSFs on digital technology usage.

The resources are depicted as rectangles. Direct connections between the resources are shown as arrows.

The resources are used as follows for unified and customized solutions: • Unified solutions.

The customer problem fits in a particular scheme, recognized by the PSFs. Then, unified solutions can be provided, since individual consultancy is not necessary. If the customer is explained the structure of his or her problem, he or she is likely to perceive technology as easy to use, useful, and facilitated for the problem solution. The service customer can use the digital technology for the solution without being in direct contact with the service provider. Therefore, there is a direct connection between the resources service customer and the digital technology. There is no direct connection between the resources service customer and service provider. Both use digital technology.

• Customized solutions.

The customer problem is unique, requiring individual treatment. Then, customized solutions should be provided, since individual consultancy is necessary. The customers are unlikely to accept technology for the problem solution. They are unlikely to perceive the technology as easy to use, useful, and enjoyable. A customer-tailored service should be delivered, covering the special requirements and demands. Digital technologies can be used as assistant systems. Therefore, the three resources are directly connected with each other.

2.4.2. Summary

The guidance model considers three resources, which are, service provider, service customer, and digital technology. It distinguishes between unified and customized solutions, for which the

Thus, unified solutions are standardized. They are offered for problems or parts of problems, which can be categorized in certain unified schemes. As soon as the customer sees clearly the structure of his or her problem, he or she is more likely to accept digital technology for the problem solution.

This works in favor of the UTAUT determinants performance expectancy, effort expectancy, and facilitating conditions.

This leads to the first proposition:

P#1: Digital technology is likely to be accepted by the customers for unified

solutions.

Thus unique problems are missing a clearly definable structure. They cannot be categorized in unified schemes. They require individual solutions in conformity with the individual conditions. Thus, the customer perceives his or her problem as unstructured. As shown in table X, he or she is unlikely to accept digital technology in that case. Perceived lack of structure has a negative impact on the UTAUT determinants performance expectancy, effort expectancy, and facilitating conditions as explained in table X.

This leads to the second proposition:

P#2: Digital technology is unlikely to be accepted by the customers for

customized solutions.

However, digital technology can be used as assistant system as long as the service provider is involved to individually structure the problem.

This leads to the third proposition:

P#3: Digital technology can be used as assistant systems for customized

available resources are used differently. The guidance model lead to different propositions as described above, which were as follows:

P#1 Digital technology is likely to be accepted by the customers for unified solutions. P#2 Digital technology is unlikely to be accepted by the customers for customized

solutions.

P#3 Digital technology can be used as assistant systems for customized solutions. By developing this guidance model, the second research question is answered. Now, this thesis moves on with the third research question in the next section.

3. Results

3.1. Testing in the field

In order to answer the third sub question, which is “To what extent is it possible to empirically test

the guidance model?”, the guidance model was tested in the field. Considering the related literature,

the conduction of a survey questionnaire can be seen as a common method to a model. Thus, this thesis used this method. In order to optimize the questionnaire, expert interviews were carried out in advance.

Regarding nowadays economy, the importance of small and medium sized enterprises (hereinafter SMEs) is an influential aspect. Hence, this thesis focused on SMEs for the empirical testing.

3.1.1. Term definition

The present thesis uses the definition of SMEs by the European Commission (2005), which entered into force on January 1, 2005. Accordingly, SMEs are assigned to the categories micro, small and

medium-sized enterprise. As depicted in table 3, these categories require certain thresholds for the

criteria staff headcount, annual turnover and annual balance sheet. On the contrary to the compulsory thresholds for staff headcount, the compliance with only one of the other two criterions is necessary to fit the definitions.

Table 3. Thresholds for SMEs.

3.1.1.1. Role of SMEs in the economy

SME can be considered important for the national economy of a country (Alvarez, 2004), having significantly high potential to contribute to the regional and national growth (Taylor et al., 2004). As Guenter Verheugen (European Commission, 2005), member of the European Commission, who

is responsible for Enterprise and Industry, points out, “Micro, small and medium-sized enterprises (SMEs) are the engine of the European economy. They are an essential source of jobs, create entrepreneurial spirit and innovation in the EU and are thus crucial for fostering competitiveness and employment”. Insofar, in the time of economic globalization and concomitant international competition as well as “knowledge economy” (Taylor et al., 2004), their corporate development is a matter of interest to the government, giving rise to support measures to some extent (Southern, 2000).

In general, SMEs have to face a restriction of resources (European Commission, 2005), which might inhibit innovation and new technologies. The European Commission (2014) evaluated the issue of gaining customers as the most pressing, which SMEs in the EU have to face.

3.1.2. SMEs in Germany

Focusing on Germany for the empirical testing was deemed an interesting option for several reasons.

First of all, Germany holds a leading economical position in Europe (Handelsblatt, 2015). Furthermore, the structure of Germany’s national economy relies heavily on SMEs, which makes it an interesting research subject. The so-called Mittelstand, meaning small and medium-sized businesses, plays a crucial role. In total, SMEs account for more than 99 percent of all German enterprises, generating 36 percent of all turnover (Bundesministerium fuer Wirtschaft und Energie, 2014).

3.2. Research design

In order to answer the third sub question, which is “To what extent is it possible to empirically test

the guidance model?”, the guidance model was tested in the field. This thesis aims at providing a

solution for the conflicts, which are presented in table 2. Thus, exploratory research was conducted, which strived at improving the understanding of the phenomenon. For this purpose, qualitative research was deemed to be appropriate for the present research in order to gain deeper insight into the subject. Concerning qualitative research, Robson (2005) points out that the “central aim or purpose of research is understanding”. Hence, qualitative research puts the focus on meanings, which is in line with the research purpose of the present thesis.

Both, interviews and a survey questionnaire were conducted in the research process. Taking into consideration other research contributions on technology acceptance, the conduction of a survey is a common method (e.g. Magsamen-Conrad et al., 2015; Lin et al., 2014; Lallmahomed et al., 2013; Lin et al., 2013; Cheung et al., 2013; Im et al., 2010; Venkatesh et al., 2012; Gallego et al., 2008; Hansen et al., 2006; Wu et al., 2005; Van der Heijden, 2004). The same applies to online surveys, which is also used frequently as a research method (e.g. Lu et al., 2014; Venkatesh et al., 2012; Keramati et al., 2012; D’Ambra et al., 2010; Liu, 2009; Thong et al., 2006). Moreover, several research contributions in this area performed interviews (e.g. Gruzd et al., 2012; Edlund, 2012; Liu, 2009; Wu, 2006).

3.2.1. Semi-structured interviews

Several experts on this area employed at organizations of various sizes were interviewed. The interviews were analyzed in accordance with thematic analysis. The relevant parts of the coded transcripts can be found attached to this thesis as Appendix C.

3.2.1.1. Interview sample

In literature, the sample size of a study is controversially discussed. For this thesis, recent guidelines were selected. Regarding recent guidelines for thematic analysis, Braun and Clarke (2013) used a categorization by the project size and the type of data collection. In this research, interviews were conducted in the context of a small project with an appropriate sample size.

The participants consist of experts from small and medium sized PSFs working on the management level. Therefore, they could provide inside knowledge as well as a proper overview over the corporate situation. The interviewees attached importance to anonymity. Hence, neither their names nor the names of their organization are mentioned.

3.2.1.2. Interview questions

Without exception, all semi-structured interviews were conducted on the basis of a set of questions. The interview protocol with those questions can be found in Appendix A. This was to ensure the comparability of the results. Nevertheless, the questions were aligned to the individual situation of each interview in terms of slight changes in content and order.

3.2.1.3. Interview conduction

Since semi-structured interviews and face-to-face interviews in particular provide the possibility of situational modification, if required, (Robson, 2011), this method is chosen to profit from interesting responses. This method allows the profound investigation of motives and meanings behind statements. In the course of the interviews, different types of questions were used. However, mainly open-ended questions were posed for reasons of receiving unexpected or unanticipated responses, which supports the core purpose of this stage. Probes served the purpose of expanding on interesting answers.

In addition, the conduction of the interviews took place in the work places of the interviewees. In this way, a well-known and therefore comfortable environment was provided to the interviewees. It was an appropriate setting for the conversation.

The research in the field puts a great effort in remaining consistent. To achieve consistency, all interviews were conducted according to a preconceived structure. Preceding the actual interview questions, a brief explanation was provided to the interviewees. The interviews themselves followed an identical interview protocol. With the interviewees’ permission the interviews were recorded and transcribed. In this way, they could be analyzed afterwards by using thematic analysis. Due to the research topic, the interviews were held in German. The relevant parts were translated into English and attached to this thesis as Appendix C.

3.2.1.4. Interview analysis

The interviews were analyzed using thematic analysis, which works as follows:

“Thematic analyses move beyond counting explicit words or phrases and focus on identifying and describing both implicit and explicit ideas within the data, that is, themes. Codes are then typically developed to represent the identified themes and applied or linked to raw data as summary markers for later analysis.” (Guest et al., 2011)

The transcripts include only relevant parts of the conducted interviews. The explicit permission of the interviewees to publish and to translate those parts into English was obtained. The original statements can be found in the Appendix. The quotations, which were used in the text (translated into English due to readability), were numbered. This was to ensure the statements could be found in the original version.

3.2.2. Survey questionnaire

Furthermore, a survey in the form of an online questionnaire was created and distributed among German SMEs in the service industry. The survey served the purpose of providing a deeper insight.

Referring to Robson (2011), conducting a survey can be considered a “relatively simple and straightforward approach to the study of attitudes, values, beliefs and motives”, which supports the purpose of the present paper. The anonymity of this method is of advantage insofar as the respondents feel encouraged to give frank answers, also when sensitive information are asked for. (Robson, 2011)

3.2.2.1. Survey sample

This thesis conducts a qualitative survey in the context of a small project, which means a sample size of 15 until 50 surveys according to Braun and Clarke (2013).

Thus, the sample includes 33 German small and medium sized PSFs, delivering management consultancy services to their clients. Several organizational sizes are represented in such a way, that all staff headcount thresholds as defined in table 3 are covered multiple times. For greater comparability, the sample is geographically restricted to Germany. The population list can be found in Appendix E.

The respondents attached importance to anonymity. Hence, neither their names nor the names of their organization are mentioned. Sufficient personal data aside from that is provided.

3.2.2.2. Survey questions

In general, open-ended questions were used, which stemmed from the same reasons as the interview questions, namely generating unanticipated responses in the overall exploratory sense of this research.

3.2.2.3. Survey conduction

The participating organizations were carefully selected, based on certain criteria. First of all, all sizes in the range of SMEs, as defined in table 3, should be represented multiple times. Another decisive criterion was the business segment, in which the organizations operate. Exclusively PSF were allowed to participate in the survey. Last but not least, the organization headquarter had to be located in Germany.

Before distributing the survey, the draft questionnaire was pre-tested informally through various stages. The first stage used the researcher’s colleagues, family and friends to receive feedback on wording. Subsequently, experts from the group of interest, namely manager of small and medium sized PSFs, were asked for comments. They helped to improve the questionnaire, before a formal pre-test was conducted, involving one representative of each category (micro, small and medium-sized enterprise). After the elimination of all arisen problems, the final online survey was distributed.

3.2.2.4. Survey analysis

The questionnaire was designed in such a way that qualitative research could be conducted. The coded transcripts in conformity with thematic analysis as explained above can be found in

Appendix F.

The transcripts include only relevant parts of the conducted interviews. The explicit permission of the respondents to publish and to translate those parts into English was obtained. The original statements can be found in the Appendix. The quotations, which were used in the text (translated into English due to readability), were numbered. This was to ensure the statements could be found in the original version.

3.3. P#1: Digital technology is likely to be accepted by the customers for unified

solutions

Now, this thesis investigates if the propositions aforementioned hold true. This section presents the arguments for the first proposition (P#1), which is “Digital technology is likely to be accepted by

the customers for unified solutions.”. This research investigated whether this proposition is fulfilled.

The proposed guidance model assumes that particular schemes for customer problems are possible. Such standardized schemes enable the structuring of customer problems, thereby increasing the technology acceptance on the part of the customers. Then, unified solutions are possible, performed by digital technology without the direct connection between service provider and customers.

3.3.1. Identification of unified schemes

According to the respondents, their customers usually perceive their problems as unstructured and special. Facing their problems, the customers are unable to gain a clear overview over their problems. They miss a clearly definable structure. Their situation seems unique and special to them, as if it cannot be covered by unified solutions. They need clarifying information on the issue to provide clarification about possible next steps towards the problem solution.

• Quotation #1 [p. 45]:

“Our customers are aware of a problem, but they don’t know how to cope with it. A lot of them try to find answers online by searching the Internet, but give up because they don’t know the keywords to search for. They simply don’t know the important key terms. It takes too long and too much effort to gain an overview.” [Respondent 2]

On the contrary to the customers, the service providers are able to identify particular standardized or rather unified schemes. As emphasized by the respondents, often the customer problems are less unstructured than the customers perceive them to be. There are unified schemes, which cover customer problems to some extent.

• Quotation #2 [p. 45]:

“For me, normal cases mean cases, which fit into certain schemes. In my profession, one has a certain repertoire of standard solutions, which apply to certain cases. Not all customer issues are special cases.” [Respondent 2]

In order to define unified schemes, the service providers identify frequently encountered problems. These common problems can be classified according to certain criteria.

• Quotation #3 [p. 45]:

“Because we have certain criteria, with which problems can be categorized. Then we can classify the problems.” [Respondent 2]

Then, the service providers can identify unified schemes to solve these common customer problems. In that case, standardized solutions apply.

• Quotation #4 [p. 45]:

3.3.2. Solutions to unified schemes

According to the respondents, in contrary to individual cases, standardized problems require identical steps for the problem solution, which apply in any case for all customers with those particular problems. Thus, the options for solving those customer problems are limited. This allows structuring the problem solution. The standardized solutions can be offered to the customers by means of digital technology.

The standardized structures allow the usage of digital technology for the problem solution. The information and data, which the customers need to solve their problems, can be provided digitally. There is no personal contact between the service provider and the customers.

The service provider structures the unified solutions in advance and provides the structured information and data to the customers. The customers identify their problems in the structured problem solution. Therefore, they recognize a structure. Consequently, they are likely to accept the digital technology for the problem solution in this context. They are provided with the information and data, which they need for the problem solution.

• Quotation #5 [p. 52]:

“Firstly, we provide information about this topic on our website. Secondly, we offer relevant documents to our customers on our website. For instance, a Patient Decree is available for download.” [Respondent 4]

• Quotation #6 [p. 41]:

“Consequently, we published information concerning this problem on our website.”

[Respondent 1]

• Quotation #7 [p. 41]:

“We’ve started to offer certain information on our website for common topics. We structured and systematized these topics on the basis of question, which we are asked again and again.” [Respondent 1]

• Quotation #8 [p. 49]:

“We publish respective information on our website and send eNewsletters to customers, who are concerned.” [Respondent 3]

• Quotation #9 [p. 49]:

“We publish respective information on our website for these groups of customers. And also, there is the opportunity to make information available on other means such as eNewsletter.” [Respondent 3]

Thus the service providers can identify unified solution schemes for common customer problems.

This leads to the following conclusion:

C#1: Service providers can identify unified schemes for common customer

Speaking in terms of the UTAUT technology acceptance determinants, the technology acceptance on the part of the customers is expected for the following reasons:

Determinant Definition according to Venkatesh et al. (2003)

Technology acceptance

Performance expectancy

“The degree to which a person believes that using the system will help him or her to attain gains in job performance.”

The customers are provided with a structure for their problems and the problem solutions. Thus, the problem is structured. A structured solution is offered. The customers are ensured that these are efficient solutions for their problems. Thus, the customers perceive the digital solutions as useful. Effort

expectancy

“The degree of ease associated with the use of a system.”

The possible options are limited and standardized. Thus, there is a clear structure, which is why the customers perceive the digital solutions as easy to use.

Facilitating conditions

“The degree to which an individual believes that an organizational and technical infrastructure exists to support the use of the system.”

The respondent organizations strive to provide support to the use of the system. All necessary information is provided to the customers. In addition, the service provider provides the contact details in case of further questions. Thus, the customers perceive the digital solutions as facilitated by appropriate support.

Table 4. Unified solutions and technology acceptance.

3.3.3. Examples for unified solutions

Examples for possible unified solutions were found, which are presented in table 5. Different criteria were used, leading to unified solutions.

Criteria Unified scheme Unified solution

Wealth Quotation #10 [p. 41]:

“We found out that multiple customers had the same problems. For instance, the recent changes of the inheritance taxes. There was a new judicial decision, which was of interest to a particular group of customers, namely the wealthier customers. So we defined wealthier customers as the particular

target group of this problem.”

[Respondent 1]

• Information on the corporate website about the issue [Respondent 1]

• Quotation #11 [p. 41]:

eNewsletter: “eNewsletter can be sent

to a selection of recipients”

[Respondent 1]

Thus the service providers are aware of the importance of technology acceptance on the part of the customers.

This leads to the following conclusion:

C#2: Service providers take the technology acceptance on the part of the