RJOAS January 2025
by Narindra A.A.N. Mayun, Yadnyana I Ketut, Rasmini Ni Ketut, Erawati Ni Made Adi (Doctoral Study Program of Accounting, Faculty of Economics and Business, University of Udayana & Study Program of Accounting, Faculty of Economics and Business, University of Warmadewa, Indonesia)
This research delves into the perceptions of information system usage through a systematic review approach. It posits the Theory of Diffusion of Innovation as a potential complement to the Technology Acceptance Model (TAM) in influencing technology adoption across various sectors. The study investigates whether the combined application of TAM and the Theory of Diffusion of Innovation can provide a more comprehensive understanding of users' perceptions of information systems, particularly within Village Credit Institutions (LPDs) in Bali. A critical review of five studies by Venkatesh reveals that while TAM primarily focuses on individual perceptions of ease of use and usefulness, a systematic literature review was conducted to explore the broader perspective offered by the Theory of Diffusion of Innovation. Sixteen previous studies related to this theory were analyzed, indicating that TDI provides a more comprehensive view of how innovations spread among information system users within a social context.
Village Credit Institutions (LPDs) in Bali serve as unique microfinance institutions playing a vital role in the rural economy. As a manifestation of local wisdom, LPDs have existed since ancient times and have evolved with the changing times. Beyond their financial functions, LPDs serve as platforms to uphold the values of mutual cooperation and social balance within Bali's community. However, with the rapid advancement of information and communication technology, LPDs face the challenge of adapting and leveraging technology to remain relevant and competitive. This challenge is further compounded by increasing demands for transparency and accountability from the public. The implementation of information technology in LPDs is expected to enhance operational efficiency, data accuracy, and service quality for members. Moreover, it can strengthen transparency and accountability, thereby increasing public trust.
To understand the factors influencing the acceptance of information technology in Bali's LPDs, this study employs the Technology Acceptance Model (TAM) as a theoretical framework. TAM, one of the most influential models in explaining and predicting technology acceptance, focuses on two primary constructs: perceived usefulness and perceived ease of use. While TAM has proven effective in explaining technology acceptance, it has limitations, including its tendency to overlook contextual and social factors that can influence technology adoption. Additionally, TAM may not fully account for complex technology usage behaviors.
This study seeks to explore the role of the Theory of Diffusion of Innovation in providing a more comprehensive understanding of the factors influencing the acceptance of information systems in LPDs, particularly from contextual and social perspectives. The Theory of Diffusion of Innovation will help explain how new technological innovations, such as information systems, spread and are adopted within a social system, specifically in the context of Bali's Village Credit Institutions. LPDs in Bali possess unique characteristics, being deeply rooted in local culture and wisdom. Values such as mutual cooperation, consensus, and work-life balance underpin the management of LPDs. Therefore, the implementation of information technology in LPDs must consider the existing cultural and social context.
To address these challenges, this study adopts an integrative approach by examining the potential of the Theory of Diffusion of Innovation to complement the limitations of the Technology Acceptance Model identified by Venkatesh in assessing the perceptions of information system usage. The Theory of Diffusion of Innovation will help explain how new technological innovations spread and are adopted within a social system like LPDs. Meanwhile, TAM will focus on individual factors influencing technology acceptance, namely perceived usefulness and perceived ease of use. By integrating these two theories, this study aims to provide a more comprehensive understanding of the factors influencing the acceptance of information systems in LPDs. Furthermore, this study can identify barriers hindering the adoption of information technology in LPDs and formulate effective strategies to overcome these challenges.
Since its introduction by Davis, the Technology Acceptance Model (TAM) has become a dominant model in the study of technology acceptance. Venkatesh, as a central figure in the development of TAM, has made significant contributions to enriching this model. However, his research has also revealed several limitations of TAM, such as a lack of attention to social and organizational contexts, and its inability to explain complex technology usage behaviors. A thorough analysis of Venkatesh's work suggests that while TAM has provided a strong foundation, the model still requires refinement to comprehensively explain the phenomenon of technology acceptance. This research will further examine Venkatesh's work as a benchmark to identify research gaps that can open up opportunities for the development of better technology acceptance models.
Venkatesh has made significant contributions to the development and refinement of the Technology Acceptance Model (TAM). His research consistently expands the scope of TAM by incorporating new variables such as habit, subjective norms, control, intrinsic motivation, and emotions. However, these studies have also identified several limitations of TAM, including a lack of attention to contextual factors such as organizational culture and external environment. Additionally, the complexity of the models developed by Venkatesh, such as UTAUT and TAM3, can pose challenges in practical application. Nevertheless, Venkatesh's work has laid the foundation for subsequent research in the field of technology acceptance. Future research should focus on simplifying models, improving the measurement of psychological variables, and gaining a deeper understanding of the role of contextual factors in influencing technology acceptance.
The Theory of Diffusion of Innovation (TDI) is one of the most influential communication theories in sociology, psychology, and management. Developed by Everett M. Rogers, an American sociologist, and first published in his book "Diffusion of Innovations" in 1962, the theory of diffusion of innovation has been used to explain various phenomena, such as the adoption of new technologies like computers and the internet, and the spread of new ideas, such as social norms and values. The theory of diffusion of innovation is important because it has influenced various fields, helping us understand how new ideas and technologies are adopted by society and has been used to develop effective strategies to promote the adoption of innovations.
The use of information systems (IS) has become integral to modern organizations. A deep understanding of the factors influencing the adoption and use of information systems is crucial, especially in the context of microfinance institutions such as Village Credit Institutions (LPDs) in Bali. Although the Technology Acceptance Model (TAM) and the Theory of Diffusion of Innovation (TDI) have been the most relevant frameworks for understanding users' perceptions of information systems, based on a critical review of Venkatesh's research on TAM and several studies on TDI as discussed in this research, there remain gaps in the literature regarding the generalizability of findings and the identification of common patterns of information system adoption. This research aims to fill this gap by conducting a critical review of several studies conducted by Venkatesh related to TAM and a systematic literature review (SLR) using the PRISMA framework to identify research gaps, particularly the application of TDI to information system users. Through the SLR approach, this research will systematically identify, evaluate, and synthesize relevant literature related to TDI and its application in various contexts, including its applicability to microfinance institutions, specifically focusing on Village Credit Institutions in Bali. The PRISMA framework will enable researchers to identify previous research related to the Theory of Diffusion of Innovation, key variables, commonly used research methods, and diverse application contexts.
The SLR conducted using the PRISMA framework on the Publish or Perish database from 2015 to 2024 indicates a significant research interest in the application of the Theory of Diffusion of Innovation (TDI) in various contexts, particularly accounting. However, further analysis shows that research specifically applying TDI in an accounting context is still relatively limited. Out of the initial 200 articles, only 16 articles on TDI met the criteria as peer-reviewed research relevant to accounting using keywords related to TDI and the specific topic of this research, which is the use of information systems in financial institutions. This indicates the potential for further research to explore the application of TDI in more depth in an accounting context, particularly regarding contextual variables and practical implications.
Research on technology acceptance has become a major focus in recent decades, along with the rapid development of information technology. One of the most dominant models in explaining the phenomenon of technology acceptance is the Technology Acceptance Model (TAM). Venkatesh and his colleagues have made significant contributions to the development and testing of the TAM model through a series of comprehensive studies. Through an analysis of Venkatesh's five main studies, we can see how the TAM model has evolved and developed over time. These studies have identified key factors that influence technology acceptance, as well as providing valuable insights for academics, practitioners, and policy makers.
The results of a review of five studies by Venkatesh, which represent the evolution of the TAM research, demonstrate that TAM has undergone continuous development with the addition of new concepts such as perceived control, intrinsic motivation, hedonic motivation, self-efficacy, and the role of social context. This indicates Venkatesh's efforts to make the TAM model more comprehensive and capable of explaining more complex technology acceptance phenomena. TAM is often integrated with other models such as the Unified Theory of Acceptance and Use of Technology (UTAUT), the Information System Continuance Model (ISCM), and other psychological theories. The data sources for Venkatesh's research are primarily primary data obtained from longitudinal studies. Venkatesh's primary objective in using longitudinal studies in TAM research is to gain a deeper and more comprehensive understanding of the process of technology acceptance and use.
Venkatesh's primary contribution to the field of TAM lies in his innovative use of longitudinal studies, enabling a more comprehensive understanding of the dynamics of technology acceptance. Venkatesh's research has enriched the TAM literature by providing strong empirical evidence of the importance of longitudinal research in revealing the complexities of the technology adoption process. Based on the findings of Venkatesh's research, researchers have identified a research gap: the lack of focus on the social context in the application of TAM to information system acceptance. Venkatesh's findings tend to measure information system acceptance from an individual perspective. Therefore, this research attempts to explore the possibility of using the Diffusion of Innovation Theory (DIT) to help understand users' perceptions of information systems from a social perspective.
The aim of this exploration is to enrich the understanding of the factors that influence technology acceptance in social contexts such as perceptions of information technology use in organizations, companies, banks, and the like.
The theory of innovation diffusion (TDI), introduced by Everett Rogers, offers a different perspective in understanding how technological innovations spread among individuals and groups. This theory emphasizes social factors, psychological factors, and the characteristics of the innovation itself in influencing the level of adoption. The graph above provides an interesting picture of researchers' preferences in choosing a theoretical basis for research related to technology acceptance, especially in the context of the Theory of Diffusion of Innovations (TDI). It is clear that TAM (Technology Acceptance Model) and TDI dominate the researchers' choices, while UTAUT (Unified Theory of Acceptance and Use of Technology) and TPB (Theory of Planned Behavior) have a lower frequency of use. The dominance of TAM shows that researchers are still very interested in understanding individual factors that influence a person's decision to accept or reject a technology. The concepts of ease of use and perceived usefulness, which are at the heart of TAM, remain relevant and are the main references in many studies. Several previous studies on the application of the Diffusion of Innovation Theory in the adoption of information technology have employed robust methodologies, such as longitudinal studies and valid quantitative data analysis.
Longitudinal studies with repeated surveys are invaluable research methods for gaining a deep understanding of changes in behavior and technology adoption. Their strengths lie in their ability to track changes over time, identify cause-and-effect relationships, and study the process of change in a step-by-step manner. However, this method also presents several challenges, including high costs, potential respondent dropout, and complex data analysis. In the context of the previous studies referenced in this research, longitudinal studies are highly relevant as they enable researchers to understand how individuals and organizations adapt to rapid technological changes and identify factors influencing successful technology adoption. Nonetheless, it is essential to consider the limitations of this method and select a research design that best suits the research objectives.
A review of 16 research articles on the adoption and diffusion of technology innovations reveals significant contributions to understanding the factors influencing the acceptance of new technologies in various contexts. Several studies have successfully identified key factors such as technology characteristics, user perceptions, and organizational support that influence adoption success. However, there are some limitations that need to be considered. The frequent narrow focus of studies and a lack of consideration for broader contexts limit the generalizability of findings. Additionally, some studies have placed less emphasis on the practical implications of the research findings, making it difficult to directly apply these findings in practice. Methodological limitations such as small sample sizes and a lack of data validation also hinder the drawing of strong conclusions. Overall, this review highlights the need for further research that comprehensively considers various factors influencing the adoption of technological innovations, as well as providing more concrete recommendations for enhancing technology implementation in various sectors.
Based on a review of previous research, both the Diffusion of Innovation Theory and the Technology Acceptance Model (TAM) have significant potential for examining user perceptions of new information technology adoption in Bali's Village Unit Cooperatives (LPDs). TAM, with its specific focus on perceived ease of use and perceived usefulness of a technology, can be employed to predict the level of acceptance of new information technology among LPD users. TAM helps identify the psychological factors influencing users' decisions to accept or reject technology. Meanwhile, the Diffusion of Innovation Theory is highly relevant as it allows researchers to understand how new technological innovations (e.g., cloud-based accounting information systems) spread and are adopted by LPDs with diverse cultures and characteristics. This theory can help identify factors influencing adoption decisions, such as innovation characteristics, communication, and social systems. A combination of TAM and the Diffusion of Innovation Theory will provide a more comprehensive understanding of the technology adoption process in LPDs. By integrating these two theories, researchers can analyze not only the factors influencing the initial decision to adopt technology but also the factors affecting the continued use of technology.
This systematic literature review highlights the importance of integrating the Technology Acceptance Model (TAM) and the Theory of Diffusion of Innovation (TDI) in understanding technology acceptance, particularly when applied to financial institutions such as LPDs in Bali. TAM, with its focus on individual perception, provides a strong foundation for understanding the psychological factors that influence individual decisions to adopt technology. On the other hand, TDI offers a broader perspective on how innovation spreads in a social system, encompassing social, cultural, and organizational factors. The integration of these two models allows us to gain a more holistic understanding of the factors that influence the acceptance of new information systems in LPDs, so that we can design more effective strategies to encourage technology adoption. Previous studies have often focused on only one model, resulting in a partial understanding. Integration of TAM and TDI can overcome these limitations by taking into account both individual and social factors. The integration between TAM and TDI becomes very urgent in the context of implementing information systems in LPD Bali. LPD as a financial institution that has strong roots in Balinese society, operates in a complex and dynamic environment. On the one hand, there is pressure to adopt modern technology to improve efficiency and competitiveness. On the other hand, LPD must also consider the unique social and cultural context, where local traditions and values have a significant influence on individual behavior. TAM, with its focus on individual perceptions of technology, provides a useful framework for understanding the psychological factors that influence the acceptance of information systems. Meanwhile, TDI helps us understand how technological innovation spreads in a social system, including social, cultural, and organizational factors. By combining these two theories, we can gain a more comprehensive understanding of the factors that influence the success of information system implementation in Bali LPD. In addition, this integration allows us to design more effective strategies in overcoming challenges such as resistance to change, resource constraints, and the need to maintain cultural relevance. Thus, the integration of TAM and TDI is not only important to improve the operational efficiency of LPDs, but also to ensure that the implementation of information technology is in line with the values and interests of the Balinese community.
Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-01/article_06.pdf