Luận văn thạc sĩ UEH determinants of application software adoption, the case of SMEs in HCMC , luận văn thạc sĩ

OVERVIEW

INTRODUCTION

Nowadays information technology plays a crucial role in economic development

The software industry is experiencing rapid growth, outpacing many other sectors, with the global market expanding from approximately US$110 billion in 1988 to around US$600 billion by 2002 This sector presents a significant opportunity for developing countries to enhance their economies and boost national competitiveness For instance, India's software industry has maintained an impressive annual growth rate of over 20% since 1996, generating revenues of US$8.7 billion in 2001 Similarly, Brazil's software sector has also demonstrated robust growth, with rates between 11% and 12%.

Schware (1992) emphasizes that developing countries should prioritize their domestic software markets, as this focus can accelerate software exports by enhancing experience and fostering innovation in software production.

The Vietnamese government recognizes the software industry's crucial role in economic development and has implemented numerous policies to support its growth, particularly in the domestic software market With around 7,000 organizations, including 6,000 state firms and nearly 260,000 limited companies, Vietnam's software market holds significant potential However, the adoption of application software remains low, with revenues reaching only 93 million USD in 2006 Despite various conferences aimed at boosting demand for domestic application software, effective solutions have yet to be realized.

The adoption of application software among SMEs in Ho Chi Minh City is influenced by various determinants Despite a domestic market growth rate of approximately 25%, the overall size and growth of this sector remain below expectations (Nguyen, 2004).

THE CONTEXT OF VIETNAMESE SOFTWARE INDUSTRY

The Vietnamese software industry has grown prosperously in recent years Before

From 2000 to 2005, the government's plan for the software industry aimed for $500 million in revenue but fell short However, in 2006 and 2007, the industry experienced significant growth, reaching nearly $500 million in revenue, with an impressive annual growth rate of up to 40% The government projected that software industry revenues would reach $600 million in 2008.

US dollars, and for 2010 would be 800 million US dollars (Tram 2009) The target for the year 2008 was reached, however, the economic recession curtailed revenue goals

In late 2008, the financial crisis and economic recession significantly impacted software firms, particularly those focused on outsourcing, which constituted a major portion of their revenue For instance, FPT Software, a leading software company in Vietnam, experienced a revenue growth of only 40%, marking a 50% decline compared to 2007.

A survey conducted by VINASA in May and June 2009 revealed a troubling outlook for the Vietnamese software industry, reminiscent of the challenges faced in 2008-2009 The results showed that 64% of software firms experienced negative growth compared to 2008, with 12% facing severe declines and financial difficulties Only 36% of firms managed to achieve stable growth, maintaining performance at levels equal to or higher than the previous year.

However, in late 2009, there were some positive signals Some software outsourcing firms got new projects It happened because Vietnam software outsourcing firms had

The adoption of application software among SMEs in Ho Chi Minh City (HCMC) is influenced by various factors, including Vietnam's competitive labor costs, which are over 30% lower than those in China and India According to the IT department of the Ministry of Post and Telematics, the Vietnamese software industry generated revenues of $880 million, achieving a remarkable growth rate of 35%, surpassing the government's targets for 2010 (Nguyen, 2010).

The Vietnamese software industry has experienced rapid growth, averaging 35-40% annually in recent years A significant portion of this growth is driven by software outsourcing, which accounts for the majority of revenue in the sector According to a survey by Vinasa, 50% of software companies in Vietnam are engaged in software outsourcing.

Statistics reveal that while 2,000 firms are registered as software companies in Vietnam, only 800 actively participate in the industry, employing approximately 45,000 individuals Most of these firms have fewer than 30 employees and a charter capital of less than 500 million Vietnam Dong According to Jefrey Haddee, Deputy Chairman of the Business Software Association, the skills of Vietnamese IT and software workers are lacking, with only one in ten candidates deemed qualified He identifies outdated teaching programs, inadequate training in soft skills, and deficiencies in foreign language proficiency as the primary challenges facing Vietnamese IT labor (Manh 2009).

To enhance the Vietnamese software industry, experts suggest that the government should prioritize the growth of IT services, which account for over 75% of global IT and telecom revenue (Hiep 2009) Deputy Minister of Post and Telematics Nguyen Minh Hong emphasizes that the domestic IT services sector has yet to reach its full potential.

One reason is because mechanism in place is not clear enough The rest is because the government does not have preferred policies for specialization of the services industry

Determinants of Application Software Adoption: The Case of SMEs in HCMC

Experts highlight significant limitations in the Vietnamese IT services industry, including issues related to quantity, investment capacity, professionalism, inadequate intellectual property protection, and a lack of legal documentation To address these challenges, it is essential for the government to establish clear assessment standards for service quality.

Some companies believe that the government should refrain from imposing quality service standards as a prerequisite Instead, they argue that assessments should be based on the service quality agreements established between service providers and their clients (Ha 2009).

To enhance the IT industry, particularly in software, the government has tasked the Minister of Post and Telematics, Le Doan Hop, with developing an action plan He has submitted this strategy to the Prime Minister for approval, emphasizing the urgency of the initiative Minister Hop identifies six key priorities that must be addressed to ensure the successful implementation of this plan (Ha 2010).

First, build up IT human resources on a large scale as well as key resources

Second, develop IT industry in order that Vietnam not only consumes but also produces IT products

Third, establish a high bandwidth infrastructure Fourth, IT should reach everyone, such as communication and internet; tools that contributes to development in modem and civilized countries

Implementing IT in the state management system can lead to significant cost savings by establishing e-government initiatives that enhance transparency from the central to local levels, reduce backlogs and bureaucratic processes, and expedite paperwork.

Sixth, establish telecom incorporation with international stature

In April 2009, the Prime Minister announced an investment of 980 billion Vietnam dong to develop the software industry and electronic content from 2009 to 2012, as outlined in Decision 50/2009/QD-TTg By the end of 2009, an additional 16.9 billion Vietnam dong was allocated to further support this initiative.

OBJECTIVES OF THE RESEARCH

The Vietnamese domestic software market holds significant potential but has not yet reached the level of advancement seen in other countries Understanding the reasons behind this stagnation is essential, especially given the substantial government investment in the software industry Furthermore, there is a lack of research on the factors influencing the adoption of application software within the Vietnamese market.

This study aims to address a significant gap in research by focusing on the Vietnamese domestic application software market, which is vital for enhancing management efficiency By exploring the factors influencing this market, the research provides valuable insights for policymakers in Vietnam, guiding them on strategies to strengthen and leverage the domestic application software sector.

RESEARCH QUESTIONS

This study tries to answer the following questions:

1 Do BOM Characteristics affect the software application adoption?

, Do Business Characteristics affect the software application adoption?

The article explores the reasons behind the stagnation of Vietnam's domestic software market, providing insights that can aid the government in reshaping SMEs' perceptions of application software adoption Additionally, it offers guidance for software firms on key areas to focus on to stimulate growth in the local software industry.

RESEARCH METHODOLOGY AND SCOPE

This study only focuses on application software in Ho Chi Minh City's market

This study focuses on applications utilized for managing business activities within small and medium enterprises (SMEs) in Ho Chi Minh City Data was gathered through structured questionnaires, and the reliability of the collected data was assessed using Cronbach's Alpha.

In this study, EF A is utilized to validate the collected data, followed by regression analysis using the OLS model to identify the key determinants influencing the adoption of application software The statistical software Eview 4.1 is employed for these analyses.

LITERATURE REVIEW

INTRODUCTION

Chapter 1 presented the overview of this study including the important role of the software industry in the economic development of developing countries and research objectives Chapter 2 is an introduction to the argument basis for this study based on the empirical studies This chapter is composed of two main sessions: (1) the definitions of terms that are used in this study, (2) the theories and empirical studies review.

DEFINITIONS

"Software engineering 1s the systematic approach to the specification, development, operation, maintenance, and retirement of software" (Schware 1989, p.l2)

System software is essential for managing hardware components, including peripherals like printers, keyboards, monitors, and storage devices It creates the necessary environment for application software to run, serving as a crucial link between the hardware and the applications (Schware 1989).

Operating system and drivers are called as system software

Application software is specifically designed to leverage computer capabilities for managing various tasks, particularly in areas like payroll, human resources, and accounting (Schware 1989) Unlike general software such as Microsoft Excel and Word, which do not fall under this category, application software is tailored for business needs Companies can either develop this software in-house or acquire it from a software development firm to enhance their operational efficiency.

THEORIES AND EMPIRICAL STUDIES

Application software encompasses various tools designed for effective business management This study focuses specifically on the factors influencing the adoption of application software (ASADOPT) within small and medium enterprises (SMEs), as it is impractical to examine all potential influences across different business types According to Government Decree No 90/2001/ND-CP, a business qualifies as an SME if its registered capital is below VND 10 billion or it employs no more than 300 individuals.

This study focuses on the following application softwares:

Purchasing Personnel and Payroll CRM

The factors that are invest1gated in this study are mainly extracted from empirical studies from Thong and Yap (1995), Nguyen and Barrett (2006), and Nguyen (2007)

Key factors influencing business technology adoption include Innovativeness, Perceived Usefulness, Perceived Ease of Use, IT Knowledge, Size of Business, Competitive Intensity, and Types of Business This article also reviews additional empirical studies that provide support for these determinants.

Personal innovativeness significantly influences the adoption of new innovations, as noted by Leonard-Barton and Deschamps (1998) Individuals with high levels of innovativeness tend to embrace risk-taking, leading to greater willingness to adopt new ideas Additionally, these innovative employees often possess advanced skills and are less swayed by managerial directives, allowing them to contribute more effectively to the innovation process.

Innovative managers play a crucial role in encouraging less innovative employees to embrace new ideas (Leonard-Barton and Deschamps 1988) In small and medium-sized enterprises (SMEs), a CEO's innovative mindset significantly impacts the adoption of innovation, as they may be more inclined to pursue untested, high-risk solutions (Thong & Yap 1995; Al-Qirim 2007) Personal innovativeness also affects how perceptions influence innovation adoption decisions (Ritu and Jayesh 1998) Typically, a CEO collaborates with the Board of Managers (BOM) to reach final decisions, recognizing that they may not possess expertise in every area, such as Human Resource software compared to their HR manager.

This study emphasizes the importance of the Board of Management (BOM) in addition to the CEO, as the innovativeness of the BOM (referred to as INNO) is crucial in determining an organization's adoption of new application software.

Hypothesis 1: Firms with BOM who are more innovative have positive effect on adopting application software

A positive attitude from the CEO towards the adoption of information technology (IT) significantly increases the likelihood of its implementation within a business This perspective highlights that attitudes towards IT implementation are closely tied to perceptions of technology, as noted by Thong and Yap (1995).

According to Nguyen and Barrett (2006) and Nguyen (2007), the technology

The Technology Acceptance Model (TAM) serves as a robust theoretical framework for understanding application software adoption, particularly among small and medium-sized enterprises (SMEs) in Ho Chi Minh City (HCMC) Central to TAM are two key constructs: perceived usefulness and perceived ease of use, which significantly influence users' attitudes towards system utilization, as evidenced by numerous empirical studies.

Nguyen and Barrett (2006) demonstrate that perceived usefulness and perceived ease of use are significant predictors of the intention to utilize IT applications Additionally, these factors can effectively forecast actual IT usage.

Nguyen and Barrett (2006) and Nguyen (2007) demonstrate that the Technology Acceptance Model (TAM) effectively explains both individual and organizational intentions to use IT applications Attitudes toward IT adoption are influenced by perceived usefulness and perceived ease of use This research focuses on application software within the IT domain, utilizing the concepts of perceived usefulness and perceived ease of use in the context of Bill of Materials (BOM) to represent a firm's implementation of application software.

Perceived usefulness (denoted as OPU) of application software is a degree to which the SME believe that application software is useful (Nguyen & Barrett 2006; Nguyen

The effectiveness of application software on business performance is often uncertain until it is implemented within a firm When business owners and managers (BOM) perceive an application as beneficial, they are more inclined to adopt it This perceived usefulness can be enhanced through positive experiences, either by directly using the application or learning from others who have successfully utilized it to improve their performance.

Hypothesis 2: Firms with the BOM who perceive the usefulness of application software have positive effect on adopting application software

Perceived ease of use (OPEU) significantly influences intentions to utilize information technology (Davis et al., 1989) In the context of small and medium enterprises (SMEs), perceived ease of use refers to the belief that application software can be employed effortlessly to manage tasks and address administrative issues (Nguyen & Barrett, 2006; Nguyen, 2007) Consequently, the less effort required by firms to execute and oversee their operations using application software, the greater their perceived ease of use When the business operations manager (BOM) finds an application easy to navigate, they are more likely to adopt it for business purposes.

Hypothesis 3: Firms with the BOM who perceive the ease of use of application software have positive effect on adopting application software

Research indicates that the usability of a system is a key factor in assessing its functionality, with the perceived ease of use significantly impacting the perceived usefulness of application software (Nguyen & Barrett, 2006) Additionally, Ritu and Jayesh (1998) found that innovativeness enhances the connection between perceived usefulness and the adoption of application software, as well as between perceived ease of use and its adoption However, this study will not explore the interactions among innovativeness, perceived usefulness, and perceived ease of use.

Thong and Yap (1995) find that lack of IT knowledge (denoted as ITKNOW) contributes to the failure of small firms to adopt IT, howe~er, CEOs understanding the

The adoption of application software among SMEs in Ho Chi Minh City is significantly influenced by the perceived ease of use and usefulness of IT Organizations often hesitate to adopt IT applications due to concerns about their complexity, despite recognizing their potential benefits Effective IT awareness among the Board of Management (BOM) can alleviate these concerns, leading to a greater belief in the usability of IT applications While IT knowledge is synonymous with IT awareness and impacts both perceived usefulness and ease of use, this study does not delve into its specific effects Notably, many CEOs remain reluctant to embrace new IT solutions, which underscores the importance of addressing these perceptions to foster adoption.

Many individuals remain unaware of the numerous benefits that information technology (IT) can offer By educating them about these advantages, it is likely that they would be more open to adopting IT solutions in their personal and professional lives.

Hypothesis 4: Firms with BOM who have IT knowledge have positive effect on adopting application software

Organizational size significantly influences the adoption of information technology (IT) and e-commerce, as noted by Hashim (2007) Additionally, Al-Qirim (2007) highlights the positive relationship between firm size and the adoption of Intranet and Electronic Data Interchange (EDI) systems Furthermore, research by Thong and Yap (1995) indicates that the size of firms affects their adoption of application software.

Small firms face more resource constraints than large firms Large firms have a large scale of operations; therefore they are more likely to use IT than small firms

Hypothesis 5: Firms with larger in size have positive effect on adopting application software

METHODOLOGY

INTRODUCTION

This chapter is to discuss the methodology that is employed to test the conceptual framework developed in Chapter 2 This chapter introduces (1) the research process,

(2) the operationalization of measurement, and (3) the design of the survey questionnaire.

RESEARCH PROCESS ããããããããã

The research process of this study was composed of two main steps illustrated in Figure 3 1

The first step was to design questionnaires for the survey This was undertaken from the literature review From the literature review, all items from the questionnaire were

The study explores the factors influencing the adoption of application software among small and medium-sized enterprises (SMEs) in Ho Chi Minh City (HCMC) A tailored questionnaire was developed to gather relevant data, ensuring that the items were specifically aligned with the context of application software usage The detailed questionnaire can be found in Appendix 1.

This research involved a primary survey, as the pilot phase was deemed unnecessary due to the use of established items from previous empirical studies that required no modifications The main survey was conducted to evaluate both the measurement and structural models effectively.

This study employed face-to-face interviews and a mail survey targeting BOM members from firms in Ho Chi Minh City The survey measures were refined using Cronbach's alpha and Exploratory Factor Analysis (EFA) Subsequently, the refined measures were analyzed through least squares regression to estimate the results.

This study estimates an OLS model for application software adoption among SMEs, with the dependent variable derived from factor analysis using a 5-item Likert scale The reliability of the scale was assessed through Cronbach's alpha and exploratory factor analysis (EFA) The model quantifies application software adoption on a scale from 1 to 5, where 5 indicates a high level of adoption.

1 means highly not adopt application software

The measurement of application software adoption focused on various management areas where software applications could enhance firm activities This variable encompasses multiple applications rather than a single one, as each firm may utilize one or several software solutions to improve their operations.

Determinants of Application Software Adoption: The Case of SMEs in HCMC applications at the same time (MRP, SCM, CRM, Personnel and Payroll, etc.)

The application known as ERP encompasses various functionalities, including MRP, SCM, CRM, Personnel and Payroll, Inventory, and Finance Management For the purposes of this discussion, we will consider that the firm utilizes all the applications integrated within ERP rather than focusing solely on ERP itself.

Similarly, some firms implemented the application for themselves That application might include one or many applications list above, such as MRP and Personnel &

Payroll In that case, we also considered that the firm uses the MRP and Personnel &

The questions listed in the following table are for different applications that the firms use Each question is for a type of application

Our firm has applied application software AAS1 efficiently and effectively in tinancial management D D D D D

Our firm has applied application software AAS2 efficiently and effectively in the improvement of our inventory control activities and purchasing activities D D D D D

Our firm has applied application software AAS3 efficiently and effectively to improve our sales activities and customer services D D D D D

Our firm has applied application software AAS4 efficiently and effectively in the D D D D D

Determinants of Application Software Adoption: The Case of SMEs in HCMC utilization and simplification ofhuman resource management

Our firm has applied application software AASS efficiently and effectively in the simplification of manufacturing resources planning D D D D D

The measurement of BOM innovativeness utilized a modified version of the Thong and Yap (1995) scale, based on Kirton's Adaption-Innovation Inventory (KAI) This assessment focused on three key items: the tendency of BOM to generate original ideas, the preference for creating new concepts over improving existing ones, and the willingness to take risks by pursuing unconventional approaches.

1 BOM usualiy has original ideas INN01 D D D D D

2 BOM would sooner create something INN02 new than improve something existing oã D D D D

3 BOM often risks doing things differently INN03 0 D D 0 D

BOM IT knowledge was measured based on the scale developed by the Thong and Yap

(1995) Their scale was measured by two items: (1) the computer experience, (2) the

Determinants of Application Software Adoption: The Case of SMEs in HCMC rating of the computer knowledge compared to other people in similar positions

However, this study used only the item 2 because this item _followed the Likert scale

I would rate my own understanding of ITKNOW computers (before my company computerized) as very good compared to oj other people in similar positions D D D D

The perceived usefulness of the application software was evaluated using a modified version of the Davis scales, as outlined by Nguyen and Barrett (2006) This assessment included five key indicators: the software's ability to facilitate easier information management, enhance the speed of data processing, reduce costs associated with obtaining statistical data, improve the effectiveness of business decision-making, and an overall consideration of the software as a valuable tool for managing business activities.

1 By using the application software, our OPU1 firm would manage information related to our business more easily D D D D D

2 By using the application software, our OPU2 firm would process and obtain information related to our business more quickly D D D D D

3 By using the application software, our OPU3 firm would obtain the statistic data related to our business more cheaply D D D D D

4 By using the application software, our OPU4 firm would find it more effective in making business decisions D D D D D

5 Overall, our firm would consider that the OPUS application software is useful for managing business activities D D D D D

3.3.2.4 BOM Perceived Ease of Use

The perceived ease of use of the application software was evaluated using a modified version of the Davis scales, as outlined by Nguyen and Barrett (2006) This assessment included four key items: (1) the belief that easy-to-learn application software would benefit the firm, (2) the ease of accessing business-related information through the software, and (3) the software's ability to enhance communication within the organization.

Determinants of Application Software Adoption: The Case of SMEs in HCMC departments in our firm, and (4) Overall, our firm prefer the application software which is easy to use

Exhibit 3.5 - Perceived ease of use

I The application software which is easy to OPEU1 learn would be good for our firm D D D D D

2 It is easy to !c.Jk up the information related OPEU2 to our business by using the a!Jplication software D D D D D

3 It is easy to use the application software to OPEU3 improve the communication between the departments in our firm D D D D D

4 Overall, our firm prefer the application OPEU4 software which is easy to use D D D D D

The competitive intensity of a business was assessed using the Thong and Yap (1995) scale, which includes two key indicators: first, the level of rivalry among firms in the industry is notably high, and second, there exists a wide array of alternative products and services in the market that, while distinct, serve similar functions to those offered by our firm.

1 The rivalry among firms in the industry in CINT1 which my company is operating is very intense D D D D D

2 There are many products/services in the CINT2 market which are different from ours but perform the same functions D D D D D

Business size was measured by number of employees, a measure used by Thong and Yap (1995)

Type of business was measured based on the types of business, included: (1) manufacturing, (2) trading, and (3) services

3.3.4 Measurement Scale and Notation of Variables

All items in the study, except for one measuring business size and three assessing the type of business, were evaluated using a five-point Likert scale, where 1 indicates the lowest level and 5 signifies the highest level.

Strongly Disagree Disagree Neutral Agree Strongly Agree

The notation of variables was presented in the exhibit 3.1 to 3.5 above and summarized in the Appendix 2.

SURVEY DESIGN

A survey was conducted involving 200 businesses and organizations in Ho Chi Minh City, encompassing three sectors: manufacturing, trading, and services Although none of the surveyed entities were software firms, they utilized application software to manage their operations The focus was on state-owned, joint stock, and privately-owned companies that had been in the market for at least two years, ensuring their stability and consistent operation.

The survey was carried out by distributing questionnaires to either the CEO or a member of the Board of Management (BOM) through email, or by collecting responses directly during meetings with these individuals.

We sent out 200 questionnaires, however, we got 140 questionnaires answered finally

The data analysis of the survey is presented in the next chapter

FINDINGS AND DISCUSSION

INTRODUCTION

This chapter begins with a descriptive analysis of the survey data, followed by a reliability analysis to evaluate the scales' consistency An explanatory factor analysis (EFA) is then conducted to confirm the predefined factors and prepare the data for subsequent OLS regression Finally, with all necessary data in place, OLS regression analysis is employed to test the hypotheses outlined in Chapter 2.

THE SAMPLE ~ã

Hair et al (1995) suggest that a minimum sample size of 100 is necessary for the effective application of maximum likelihood estimation, with a maximum of 20 free parameters to be estimated Consequently, a sample size exceeding 100 is deemed more suitable for this research.

The research focused on firms located in Ho Chi Minh City, as outlined in the survey design section of the previous chapter Data was collected from a representative sample of these businesses.

140 people who were BOM members from the firms located in Ho Chi Minh City by filling out structured questionnaires The sample size of 140 was relevant.

DESCRIPTIVE ANALYSIS

A frequency analysis was performed to examine the characteristics of businesses, focusing on the type and size of each enterprise, as detailed in Tables 4.1 and 4.2 Additionally, the analysis included an evaluation of the application software utilized by these firms, which is presented in Table 4.3.

Determinants of App lication Software Adoption: The Case of SMEs in HCMC

In a study of various business types, it was found that 44% of the firms surveyed were service-oriented, totaling 61 companies Manufacturing firms comprised 30% of the sample, while trading firms accounted for 26% Although some firms may engage in multiple sectors, this research concentrated on the primary business area that generated the highest revenue for each firm.

Type of Business Frequency Percentage (%)

As shown in Tabl equal or less than e 4.2, there were forty-eight firms with the number of employees

30 (34%) Forty-three firms had more than 30 employees but less

In the analysis of firm sizes, 31% of the companies surveyed had 100 or more employees, with 23 firms having over 300 employees Additionally, 19% of the firms employed between 1 and 10 individuals The data, illustrated in Table 4.3, highlights the software applications utilized by these firms.

In a study on the determinants of application software adoption among SMEs in Ho Chi Minh City, it was found that a significant number of firms utilize multiple software applications simultaneously Specifically, out of 140 firms surveyed, 76% (107 firms) adopted accounting software, 58% (81 firms) implemented personnel applications, and 46% (65 firms) used sales applications Additional software applications employed by these firms are detailed in Table 4.3.

RELIABILITY ANALYSIS

The scales were assessed by Cronbach's alpha In other words, Cronbach's alpha was used to assess the reliability of the scales

After running Cronbach's alpha, Cronbach's alpha of OPU, OPEU, CINT were 0.858, 0.808, 0.809, respectively INNO had Cronbach's alpha value (0.453) less than 0.70

Cronbach's alpha of Application software adoption (ASADOPT) was 0.873 as well

Research indicates that a Cronbach's alpha value between 0.8 and 1 signifies a good scale, while a value between 0.7 and 0.8 indicates an acceptable scale (Peterson 1994; Slater 1995) The variable INNO was found to be insignificant and subsequently excluded from the model Additionally, IT knowledge (ITKNOW) was limited to a single item, rendering it unusable for further analysis.

Determinants of Application Software Adoption: The Case of SMEs in HCMC be assessed by Cronbach's alpha The results of reliability analysis are shown in Table 4.4

BOM Perceived Ease of Use [OPEU] 0.808

REVISE MODEL

Because BOM Innovativeness (INNO) was removed from the model, the model was revised as the following:

Perceived usefulness Adoption of application software

Business size, Type of business

The function was also revised as the following:

ASADOPT = f(OPU, OPEU, ITKNOW, SIZE, CINT, BTYPE) Factor Analysis

In this research, factor analysis was used to assess the factors The method of factor analysis used in this research was Explanatory Factor Analysis (EF A)

Firm would process I information more quickly 299 164 -.018

Firm would obtain statistic data more 243 309 -.420 cheaply [OPU3]

Firm would make business decisions more 247 287 -.228 effectively [OPU4]

AS (application software) I is seemed to be useful I

360 i 407 -.014 for managing biz activities [OPUS] I

AS being easy to learn :;;ãfg~l 030 241 would be good [OPEU1]

Easy to look up information by using AS 257 -.157

Easy to use AS to improve communication 397 -.220

Firm prefers AS which is 096 176 easy to use [OPEU4]

A member of BOM is very good at computer 057 [ITKNOW]

Competition is very high 252 [CINT1]

Many products/services 215 1 I 129 in the market [CINT2] I

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 6 iterations

The factor analysis results indicated that four out of five items of OPU demonstrated a factor loading greater than 0.6, while one item (OPU3) had a loading of 0.419, which remains acceptable for retention Additionally, four items of OPEU showed factor loadings exceeding 0.5 Furthermore, one item from ITKNOW and two items from CINT also exhibited factor loadings greater than 0.6.

In this research, items with a factor loading below 0.5 were retained because it was a confirmatory testing rather than exploratory testing The majority of items within the identified factors demonstrated factor loadings exceeding 0.6, indicating their significance Factor loading serves as the correlation coefficient between variances and factors; thus, items with a loading below 0.5 suggest a lack of correlation and indicate that they do not belong to the same factor (Hair et al., 1998).

Another method of evaluating the suitability for factor analysis is the Kaiser-Meyer- Oklkin (KMO) and Ba11lett's test (Kaiser, 1958) The large value ofKMO (from 0.5 to

1) was the sufficient condition for factor analysis The value below 0.5 indicated that factor analysis might not be appropriate for the data In the factor analysis results, KMO of the factor OPU, OPEU, ITKNOW, CINT was 0.818 The results are shown in Table 4.6

Table 4.6 - KMO and Bartlett's Test

Kaiser-Meyer-Oikin Measure of Sampling Adequacy .818

Approx Chi-Square df Sig

To sum up, after using EF A, the following factors OPU, OPEU, ITKNOW, and CINT were confirmed to be valid

Similarly, the dependent variable (ASADOPT) was assessed by EFA Its KMO was 801 and the factor loading of its items was larger than 0.7 The results are presented in Table 4 7 and 4.8

Table 4.7- KMO and Bartlett's Test (ASADOPT)

Kaiser-Meyer-Oikin Measure of Sampling Adequacy

1 Apply AS in financial management 814

Apply AS in sales and customer services 835

App,y AS in human resource management 853

Apply AS in manufacturing resource 784 planing [ASADOPT5]

Extract1on Method: Pnnc1pal Component Analysis a 1 components extracted

The empirical model is written as follows:

ASADOPT = f(OPD, OPED, ITKNOW, SIZE, CINT, BTYPE)

OPD, OPED and ITKNOW were assessed by EFA and they could be placed directly into the model

CINT was evaluated using EF A and treated as a dummy variable, functioning as a moderating variable rather than an independent variable We calculated the median of the sum of two item values, which resulted in a median of 7.5 Consequently, we recoded values from 0 to 7 as 0 and values above 7 as 1.

Table 4.9- Frequency Analysis of sum values of two items of CINT

Frequency : Percent ! Valid Percent I Percent

BTYPE was also established as the following Dummy variables:

DBTYPE 1 i = 1: the firm is Manufacturing DBTYPE 1 i = 0: the firm is not Manufacturing DBTYPE 2 i = 1: the firm is Trading

DBTYPE 2 i = 0: the firm is not Trading

The business types with dummy variable are represented in Table 4.10

Table 4.10-Business Type with dummy variables

Type of Business DBTYPEt DBTYPE2

Business size (SIZE) was separate into the following dummy variables:

SIZE 1 = The number of employees of firm is equal or less than 30 1:

The number of employees of firm is more than 30

The number of employees of firm is more than 30 but less than or equal to 100

The number of employees of firm is equal or less than 30, or more than 100

The number of employees of firm is more than 1 00 but less than or equal to 300

The number of employees of firm is equal or less than 100 or more than 300

The dummy variables of the business size are represented in Table 4.11 below

Table 4.11- The dummy variables of the business size

The model can be written as following:

ASADOPT = ~~ + ~20PU + ~30PEU + ~4ITKNOW + ~ 5 CINT + ~ 6 DBTYPE 1 +

The analysis revealed that Competitive Intensity (CINT) did not significantly influence the adoption of application software, with a p-value greater than 0.05 Additionally, the business size dummy variables (SIZE1, SIZE2, and SIZE3) also showed no significant differences between adopters and non-adopters of application software, as indicated by their p-values exceeding 0.05.

The findings indicate that BOM IT Knowledge (ITKNOW) significantly influences the adoption of application software, with a positive impact at 0.1% (p-value < 0.001), aligning with Thong and Yap's (1995) research Additionally, the types of business, represented by DBTYPE1 (p-value = 0.0083) and DBTYPE2 (p-value < 0.05), also demonstrate a significant positive effect on application software adoption Furthermore, both BOM perceived ease of use (OPEU) and BOM perceived usefulness (OPU) were highly significant, with p-values of 0.0009 and 0.0000, respectively, confirming their positive contributions to the adoption of application software.

Dependent Variable: ASADOPT Method: Least Squares

Date: 03/11/10 Time: 07:08 Sample(adjusted): 2 140 Included observations: 103 Excluded observations: 36 after adjustin~_dpoints

Variable Coefficien Std Error t-Statistic Pro b t CINT 0.096869 0.247899 0.390759 0.6969 DBTYPE1 0.375468 0.166864 2.250138 0.0268 DBTYPE2 0.373778 0.180340 2.072632 0.0410 ITKNOW 0.414353 0.114932 3.605206 0.0005 OPEU 0.274973 0.079914 3.440850 0.0009 OPU 0.424944 0.077116 5.510423 0.0000 SIZE1 -0.067986 0.227356 -0.299030 0.7656 SIZE2 -0.160708 0.219669 -0.731593 0.4663 SIZE3 0.186812 0.256850 0.727321 0.4689 c -0.233200 0.243307 -0.958460 0.3403 R-squared 0.519888 Mean dependent 0.03285 var 1

S.E of regression 0.736525 Akaike info criterion 2.31829

8 Sum squared resid 50.44964 Schwarz criterion 2.57409

3 Durbin-Watson stat 2.107262 Prob(F-statistic) 0.00000

Table 4.12- Regression with data survey (Source: Regression results by using data survey)

The estimated results above provide the evidence that does not support for H5 (Firms with larger in size have positive effect on adopting application software) and H6

Firms with high competitive intensity positively influence the adoption of application software, indicating that the decision to utilize such software is not solely dependent on a firm's size or competitive landscape Contrary to the common belief that larger firms are more inclined to adopt application software, it is possible for a large company with a workforce primarily engaged in manual labor to forego such technology Conversely, a small firm with complex operations may find application software essential for managing its intricate tasks efficiently Additionally, in highly competitive environments, both large and small firms may opt out of using application software if their operations are straightforward and manageable with basic tools like spreadsheets On the other hand, a small firm in a less competitive market might adopt application software to enhance its competitive edge, especially if its competitors are leveraging similar technologies.

The findings support the hypotheses that firms with Business Operations Management (BOM) members who perceive the usefulness and ease of use of application software, along with possessing IT knowledge, are more inclined to adopt such software Specifically, individuals like a Human Resources Manager with strong IT expertise recognize that software applications can significantly enhance job performance and efficiency.

The adoption of application software among SMEs in Ho Chi Minh City significantly benefits Human Resources Managers by streamlining tasks, allowing them to focus on strategic planning and staff development.

The findings support the hypothesis that manufacturing and trading firms are more likely to adopt application software compared to service-oriented companies This trend is attributed to the specific needs of manufacturing and trading businesses, which require effective management of commodity purchasing and sales processes.

The results of hypothesis testing are summarized in Table 4.13

Table 4.13-Summary of Hypothesis Testing

Innovative firms that utilize Bill of Materials (BOM) exhibit a significant positive impact on the adoption of application software Additionally, organizations that recognize the perceived usefulness of support application software are more likely to embrace its adoption effectively.

H3 Firms with BOM who have perceived ease of use of Support application software have positive effect on adopting application software

H4 Firms with BOM who have IT knowledge have Support po~itive effect on adopting application software H5 Firms with larger in size have positive effect on Not Support

In the context of SMEs in Ho Chi Minh City, the adoption of application software is influenced by various determinants Notably, firms operating in highly competitive environments show no significant impact on their adoption of such software Conversely, those engaged in manufacturing or trading activities demonstrate a positive correlation with the adoption of application software, indicating that these sectors are more inclined to leverage technology for operational efficiency.

The estimated results highlight the significant influence of IT knowledge, perceived usefulness, perceived ease of use, and business types on the adoption of application software.

The perceived usefulness of application software significantly influences its adoption, with a change of 1 unit in perceived usefulness leading to a 0.425 unit change in adoption, assuming other factors remain constant When application software effectively addresses business challenges and enhances management efficiency, its perceived usefulness increases, thereby boosting adoption rates Conversely, if the software fails to resolve issues or improve efficiency, its perceived usefulness diminishes, resulting in a decline in adoption.

The perceived ease of use of application software significantly influences its adoption among BOM members, with a 1-unit increase in ease of use leading to a 0.275-unit increase in adoption, capped at a maximum change of 5 units If BOM members find the application software easy to use, their likelihood of adoption increases A user-friendly design enhances their perception of ease, further promoting software adoption; conversely, a lack of usability may hinder this perception.

DISCUSSIONS

IMPLICATIONS AND CONCLUSIONS

INTRODUCTION

This chapter discusses the mam findings of the study and suggests some policy implications and also raises some limitations of this study

5.2 Main results contribution and implications

The Vietnamese economy is experiencing rapid growth, consistently exceeding 8% annually, with the government prioritizing the software industry as a key component of its economic development strategy Numerous preferential policies, including reduced duties for software development firms and substantial budget investments like project 112, have been implemented to support this sector However, despite a significant increase in revenue, primarily driven by outsourcing, the domestic application software market is underperforming, growing at only 25%, which is below expectations The low adoption rate of application software among firms highlights the ongoing challenge of effectively leveraging the domestic market, a question that remains largely unanswered This study aims to provide insights into the factors contributing to the slower-than-expected growth of Vietnam's domestic application software market.

The overall IT knowledge among our population remains limited, with many individuals lacking basic computer skills A significant number can only perform simple tasks such as gaming, chatting, checking webmail, or editing basic documents Without sufficient guidance, they struggle to utilize even simple application software, highlighting a widespread deficiency in computer proficiency.

Small and medium-sized enterprises (SMEs) in Ho Chi Minh City exhibit a slow adoption of application software, often opting for simpler tools with limited functionalities However, as their IT knowledge improves, they become more inclined to explore applications that enhance their work efficiency and ease.

- When people are lacking in IT knowledge, they does not know the utilities (Ritu

Many individuals remain unaware of the true benefits of application software, as highlighted by Jayesh (1998) and Nguyen & Barrett (2006) The perception of usefulness is often influenced by personal experience and observation In Ho Chi Minh City, numerous software development companies and groups exist, yet many lack a thorough understanding of business processes and necessary skills This gap leads to the creation of software that fails to align with the specific needs of businesses, ultimately resulting in negative perceptions among firms that have encountered such issues Additionally, firms that learn about the failures of others in implementing application software may also develop a pessimistic view of its usefulness.

Individuals with limited IT knowledge tend to prefer applications that are simple and have fewer functions, as they often perceive complex software as difficult to use (Ritu & Jayesh, 1998; Nguyen & BatTett, 2006) Furthermore, firsthand experience and observations significantly influence their perception of ease of use; encountering complicated and user-unfriendly software can lead to a negative shift in how they view the usability of such applications.

From the findings above, several implications are recommended:

Software development firms aiming to sell, develop, and deploy application software should conduct surveys to assess the IT knowledge of their employees, particularly the BOM members If the survey reveals a lack of IT proficiency, these firms should implement a gradual training approach, starting with fundamental concepts to enhance their team's skills effectively.

The adoption of application software among SMEs in Ho Chi Minh City is influenced by various factors, including the need for user-friendly interfaces that facilitate client adaptation and self-improvement in IT knowledge To enhance this process, software development firms should prioritize training programs for their clients' employees, equipping them with essential IT skills to maximize software utilization.

IT knowledge is enhanced, the software development firms should upgrade the application software to a higher level one

Software development firms must emphasize the utility and user-friendliness of their application software to attract potential clients, prioritizing client needs over existing offerings Understanding clients' business processes is essential before implementing software solutions, as this knowledge enables firms to help clients standardize their operations effectively Furthermore, customizing existing application software to align with these standardized processes is crucial for delivering tailored solutions that meet client requirements.

To successfully implement e-government, it is essential for the government to first streamline administrative processes and adopt user-friendly application software with simplified functions Concurrently, training programs should be established to ensure that personnel not only master basic software usage but also leverage it as an effective management tool As the IT knowledge of management improves, the government can gradually upgrade application software to align with the evolving technological proficiency of its users.

- Government should have policies to prevent software development firms from providing application software with poor quality in terms of usefulness and ease of use

Many software development firms prioritize low pricing over quality, leading to applications that lack usefulness and ease of use As a result, businesses often abandon these applications after a short period of use.

Some firms employing accounting software, for example, have two accountants and after employing accounting software needed four accountants because two accountants

Determinants of Application Software Adoption: The Case of SMEs in HCMC do input data into the software and two do the things that the software cannot solve.

LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCHES

Due to limitations of time, I could only survey 140 firms: some of them did not include enough information and some were answered by who were not from the BOM

The data collected in this study was insufficient to provide a comprehensive understanding of the impacts of IT knowledge, perceived usefulness, and perceived ease of use on the adoption of application software in Ho Chi Minh City Furthermore, the research did not explore the relationships between IT knowledge and perceived usefulness or ease of use, nor did it investigate the connection between perceived usefulness and perceived ease of use Additionally, the study overlooked the potential effects of asymmetric information on perceived usefulness and perceived ease of use.

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THE QUESTIONNAIRE

Date/Ngay month/thang year/nam 2009

I am Le Thanh Binh, a student in the Vietnam - Netherlands Master of Art Programme, conducting research on the adoption of application software by businesses in Ho Chi Minh City I kindly ask for a moment of your time to answer the following questions, emphasizing that there are no right or wrong answers; every response is valuable to my study Thank you for your participation!

Xin chào Anh/Chị, tôi là Lê Thành Bình, học viên cao học tại Hà Lan Hiện tại, tôi đang tiến hành nghiên cứu về sự lựa chọn phần mềm trong các công ty/doanh nghiệp tại TP HCM Tôi rất mong Anh/Chị dành chút thời gian để trả lời cho tôi một số câu hỏi sau đây Xin lưu ý rằng ý kiến của Anh/Chị không có đúng hay sai; tất cả ý kiến đều có giá trị cho nghiên cứu của tôi Tôi rất mong nhận được sự hợp tác chân thành từ Anh/Chị.

Company Name/ Ten cong ty: Address I Dia chi:

Telephone I S6 di~n tho~i: lnnovativeness I Slf sang t(IO

1 BOM usually has original ideas

BGD thuimg c6 y tuang khai xuang

2 BOM would sooner create something new than improve something existing

BGD thich tf;w nhfing cai mai h011 cai tiin nhfing gi dang ton tgi

3 BOM often risks doing things differently

BGD thuimg idy rid ro ai lam vi?c theo mr)t each khac

Perceived usefulness I I>U'Q'C nh~n thrrc Ia hii'u dl].ng

1 By using application software, our firm would manage information related to our business more easily

Vai phdn mim t'mg d~:mg, cong ty chung toi quem ly thong tin doanh nghi?p dl dang hem

2 By using application software, our firm would process and obtain information related to our business more quickly

V&i phdn mim t'mg d~mg, cong ty chung toi xu ly va agt aU(IC thong tin doanh nghi?p nhanh han

3 By using application software, our firm would obtain the statistic data related to our business more cheaply

V ai phdn mJm tmg d1,mg, cong ty chung toi CO dU(J'C thong tin th6ng ke lien quan din doanh nghi?p re h071 I

4 By using application software, our firm would find it more effective in making business decisions

V&i phdn mJm U11g d1;1ng, cong ty chung toi c6 thi dua ra quyit djnh hi¢u qua han D D D D D

5 Overall, our firm would consider that application software is useful for managing business activities

N6i chung, cong ty chung toi xem phdn mJm U11g d?tng Ia hiru dl;lng cho vi¢c quan ly cac hor;~t dong doanh nghi¢p D D D D D

Perceived ease of use I DD'Q'C nh~n thrrc Ia d~ sfr dl}.ng

1 Application software which is easy to learn would be good for our firm

Phdn mJm tmg d1;1ng di h9c se t6t cho doanh nghi¢p chung toi D D D D D

2 It is easy to look up the information related to our business by using application software

Thcjt di dang tim kiim thong tin lien quan din doanh nghi¢p bi:mg phdn mim tmg d1,mg D D D D D

• 3 It is easy to use application software to improve the communication between the departments in our firm

Thcjt di dang sit d1;1ng phdn mJm img d1;1ng di cai tiin vi¢c trao dJi thong tin giu cac b{J phcjn trong doanh nghi¢p D D D D D

4 Overall, our firm prefer application software which is easy to use

N6i chung, cong ty chung t6i thich phdn mJm tmg d1;1ng D D D D D

Determinants of Application Software Adoption: The Case of SMEs in HCMC di sir dl:fng h(Jn

IT Knowledge I Ki~n thrrc cong ugh~ thong tin

I would rate my own understanding of computers (before my company computerized) as very good compared to other people in similar positions

T6i tv acmh gia muc a(J hidu biit vJ may tinh cua t6i (tru&c khi c6ng ty t6i tin h9c h6a) Ia rdt t6t so v&i nhfmg nguai khac trong vf tri tu(Jng au(Jng

Competitive Intensity I CU'img dq c~nh tranh

1 The rivalry among firms in the industry in which my company is operating is very intense

Sv C(lnh tranh trong cac doanh nghi¢p cimg nganh cua c6ng ty chung t6i rdt miinh li?t

2 There are many products/services in the market which are different from ours but perform the same functions

C6 nhiJu san phdm va djch Vl:f trong cimg thi truirng khac vfrf SCtn phdm VG djch Vl:f CUQ chung toi nhung thl!C hi¢n cimg chuc nang

Number of employees: s6 lu(111g nhan vien

Type of Business I Lo~i doanh nghi~p

You can circle more than one

Bc;m co thi ch(Jn nhidu han mr}t

Sa hi'ru nha nubc

Adoption of application software I Sv Iva chQn phAn m~m rrng dt,mg

Does your firm use application software? YES/NO D

Cong ty br;m co su dl;lng phbn mJm ung dl;lng khong? COIKHONG

Our firm has applied application software efficiently and effectively in financial management D D D D D

C6ng ty chung t6i dii cip dt,mg phan mem tmg d1,mg hi¢u qua va co kit qua trong vi¢c quan l;! tai chinh

Our firm has applied application software efficiently and effectively in the improvement of our inventory control activities and purchasing activities

C6ng ty chung t6i dii cip d11ng phdn mJm ung d11ng hi¢u qua va co kit qua vao vi¢c cai tiin ccic ho(}t d(Jng mua hang va quan l;! kho D D D D D

Our firm has applied application software efficiently and effectively to improve our sales activities and customer services

C6ng ty chung t6i dii cip d11ng phdn mJm tmg d11ng hi¢u qua va co kit qua di cai tiin ccic ho(}t d(jng kinh doanh va dfch

Our firm has applied application software efficiently and effectively in the utilization a11d simplification of human resource management

Công ty chúng tôi cung cấp dịch vụ phát triển phần mềm với hiệu quả cao và có kết quả trong việc tối ưu hóa và đơn giản hóa quản lý nguồn nhân lực.

Our firm has applied application software efficiently and effectively in the simplification of manufacturing resources planning

Công ty chúng tôi chuyên cung cấp giải pháp ứng dụng hiệu quả và có kết quả trong việc dân gian hóa việc hoạch định nguồn lực sản xuất.

Software Applications I Cac phin m~m lfng dt,mg

For each computer applications in use in your company, please put a tick against the application (This is a survey to know how many firms use each software application)

D6i vbi mJi ung d!,tng may tinh dang Slf dz;ng trong cong ty, vui long aanh ddu vao 1Ing dz;ng a6 Đây là khảo sát để tìm hiểu về số lượng công ty Slf dz;ng tirng phdn m~m ung dz;ng.

Application I U ng d1}ng In-use I Dang sir d1}ng

Inventory control I Quim ly kho D

- - Sales I Quim ly kinh doanh D

Personnel and Payroll I Nhan SlJ va tien Iuong D

CRM I Quim ly quan h~ khach hang D

SCM I Quc'm ly chu6i cung cap D

MRP I Ho~ch djnh ngu6n )lJc san xuat D

Others (please specify) I Khac (vui long ghi ro)

' Determinants of Application Software Adoption: The Case of SMEs in HCMC

NOTATION OF VARIABLES

1 BOM usually has original ideas INNOl

2 BOM would sooner create something new than improve INN02 something existing

3 BOM often risks doing things differently INN03

1 By using application software, our firm would manage OPUl information related to our business more easily

2 By using application software, our firm would process and OPU2 obtain information related to our business more quickly

3 By using application software, our firm would obtain the OPU3 statistic data related to our business more cheaply

4 By using application software, our firm would find it more OPU4 effective in making business decisions

5 Overall, our firm would consider that application software OPUS is useful for managing business activities

• Perceived ease of use OPEU

1 Application software which is easy to learn would be good OPEU1 for our firm

2 It is easy to look up the information related to our business OPEU2 by using application software

3 It is easy to use application software to improve the OPEU3 communication between the departments in our firm

4 Overall, our firm prefer application software which is easy OPEU4 to use

I would rate my own understanding of computers (before my ITKNOW company computerized) as very good compared to other people in similar positions

1 The rivalry among firms in the industry in which my CINTI company is operating is very intense

2 There are many products/services in the market which are ã CINT2 different from ours but perform the same functions

Our firm has applied application software efficiently and AASI effectively in financial management

Our firm has effectively utilized application software, including AAS2, to enhance inventory control and purchasing processes Additionally, we have successfully implemented AAS3 to boost our sales activities and improve customer service AAS4 has played a crucial role in streamlining human resource management, while AAS5 has simplified our manufacturing resource planning, leading to greater operational efficiency.

CRONBACH'S ALPHA

• Cronbach's Alpha of AAS factor

Cronbach's Alpha Based on Standardized 1 Items N of Items

Variance if Item Deleted Item Deleted I

Appiy AS in financial I I management [AAS1] 13.83 15.485 i

Apply AS in sales and customer services [AAS3] 13.84: 15.426

Apply AS in human : resource management 13.95 14.564

Apply AS in manufacturing resource 14.03 i 14.822 planing [AAS5] i :

• Cronbach's Alpha of Innovativeness factor

Cronbach's Alpha Based on Cronbach's i i' Standardized , Alpha Items ; N of Items

Cronbach's Alpha if Item Deleted 847 853 841

BOM has origi nal ideas [INN01]

BOM would cr eat something ne w [INN02] ks [INN03]

Scale Scale Mean if Variance if Item Deleted Item Deleted

Cronbach 's Alpha of Perceived Usefulness factor

Cronbach's Alpha Based on Standardized ' Items 828

Firm would ma nage ore easily information m [OPU1]

Firm would pr ocess information m ore quickly [OPU2]

Firm would ob tain more statistic data cheaply [OPU 3]

Firm would ma ke business decis ions more effectively (OP U4]

AS (applicatio is seemed to b n software) e useful biz for managing activities [OPU 5]

Scale Corrected Scale Mean if Variance if Item-Total Item Deleted i Item Deleted Correlation

Cronbach's Alpha if Item Deleted 289

Cronbach's Alpha if Item Deleted 770

• Cronbach's Alpha of Perceived Ease ofUse factor

Cronbach's Alpha Based on Standardized Items N of Items

Scale Mean if Variance if ! Item-Total Item Deleted I Item Deleted i Correlation

AS being easy to learn

Easy to use AS to I ! improve communication 11.75 i 7.013 I

Firm prefers AS which is

• Cronbach's Alpha of Competitive Intensity factor

Cronbach's Alpha Based ' on Standardized Items N of Items

Scale Corrected Scale Mean if Variance if i Item-Total Item Deleted : Item Deleted I I Correlation

Cronbach's Alpha if Item Deleted 751 745

Cronbach's Alpha if Item Deleted

(a) a The value IS negat1ve due to a negat1ve average covanance among 1tems Th1s v1olates reliability model assumptions You may want to check item codings

FACTOR ANALYSIS

• Factor analysis of Adoption of Application Software factor (Dependent factor)

Component ããã-ãã - ~n.it@IE:i@!l't~!~s - - ;_ _Extraction Sums of S(!uared Loadings I

Extractron Method: Pnncrpal Component Analysrs

Apply AS in sales and customer services [AAS3] 835

Apply AS in human resource management 853 [AAS4]

Apply AS in manufacturing resource 784 planing [AAS5]

Extractron Method: Prrncrpal Component Analysis a 1 components ~xtracted

• Factor analysis of independent factors

KMO and Bar1:1ett's Test

Firm would manage i information more easily 884 i 112 ' [OPU1]

Firm would obtain ' statistic data more 419 243: i cheaply [OPU3] I

Firm would make ! I business decisions more 655 247! I effectively [OPU4] !

AS (application software) is seemed to be useful I

AS being easy to learn

Easy to look up information by using AS 105 799' [OPEU2]

Easy to use AS to I I improve communication 263: 563 [OPEU3]

Fim• prefers AS which is

A member of BOM is I I I very good at computer 057 i 187

Extraction Method: Pnnc1pal Component Analysis

Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 6 iterations

1 values l Extraction Sums of S~!._~_l.,oadings i Rotation Sums of Sguar~Load_!_r1~_

Total i Variance 1 Cumulative % 1 Total I Variance i Cumulative % Total I Variance I Cumulative %

Extract1on Method: Pnnc1pal Component Analysis

HETEROSKEDASTICITY TEST

F-statistic 1.465173 Probability 0.086139 Obs*R-squared 55.24219 Probability 0.140914

Dependent Variable: RESID"2 Method: Least Squares Date: 04/02/10 Time: 15:02

, Variable Coefficient Std Error t-Statistic Pro b c 0.186862 0.735589 0.254030 0.8004

CINT 0.424713 1.002619 0.423603 0.6734 CINT*DBTYPE1 -1.320573 0.701837 -1.881594 0.0650 CINT*DBTYPE2 0.289535 0.666914 0.434142 0.6658 CINT*ITKNOW -0.689046 0.823499 -0.836729 0.4062 CINT*OPEU -0.212865 0.435150 -0.489178 0.6266 CINT*OPU -0.453140 0.477587 -0.948811 0.3467 CINT*SIZE1 -0.796483 1.123535 -0.708908 0.4813 CINT*SIZE2 -0.046529 1.075971 -0.043244 0.9657 CINT*SIZE3 -0.382309 1.148450 -0.332891 0.7404 DBTYPE1 1.026955 0.554746 1.851215 0.0693

DB TYPE 1 *DBTYPE2 -0.533199 0.735529 -0.724920 0.4715 DBTYPE1*1TKNOW -0.109505 0.398436 -0.274836 0.7844 DBTYPE1*0PEU 0.321087 0.261101 1.229745 0.2238 DBTYPE1*0PU 0.158296 0.220662 0.717369 0.4761 DBTYPE1*SIZE1 0.036310 0.646598 0.056155 0.9554 j DBTYPE1*SIZE2 -0.593641 0.490640 -1.209931 0.2313

DBTYPE2*0PEU -0.426130 0.254442 -1.674764 0.0995 DBTYPE2*0PU 0.155155 0.230159 0.674119 0.5030 DBTYPE2*SIZE 1 1.353349 0.915306 1.478575 0 ~448

DBTYPE2*SIZE2 1.446942 0.938666 1.541488 0.1287 DBTYPE2*SIZE3 1.557673 1.005033 1.549872 0.1267 ITKNOW 0.110262 0.658018 0.167567 0.8675 ITKNOW"2 0.195025 0.195493 0.997606 0.3227 ITKNOW*OPEU 0.060786 0.183650 0.330989 0.7419 ITKNOW*OPU -0.033448 0.173432 -0.192861 0.8478 ITKNOW*SIZE1 0.479597 0.502364 0.954680 0.3438 ITKNOW*SIZE2 0.221317 0.453395 0.488133 0.6273 ITKNOW*SIZE3 0.125691 0.576705 0.217946 0.8282

Tiêu đề	Determinants of Application Software Adoption: The Case of SMEs in HCMC
Tác giả	Le Thanh Binh
Người hướng dẫn	Associate. Dr. Nguyen Dinh Tho
Trường học	University of Economics Ho Chi Minh City
Chuyên ngành	Development Economics
Thể loại	Master Thesis
Năm xuất bản	2011
Thành phố	Ho Chi Minh City

Định dạng
Số trang	73
Dung lượng	2,14 MB