Extending the Role of Diffusion of Innovation Theory (DOI) in Achieving the Strategic Goal of the Firm With the Moderating Effect of Cost Leadership

Abstract

The information system literature has long emphasized the importance of employee acceptance of information technology for achieving strategic goal of the firm and organizational performance. Consequently, this study investigates the determinants of acceptance of information technology with the extension of diffusion of innovation theory (DOI) in organizational context. Results showed that compatibility, innovativeness, trust in technology, perceived gap in IT capabilities, employee self-efficacy, and perceived cost advantage explained R^2 79.4%% variance in achieving strategic goal of the firm. The effect size analysis showed that perceived gap in IT capabilities had substantial effect size. Similarly, substantial predictive relevance was found Q^2 58.1%, 15.7% when predicting firm strategic goals and organizational performance respectively.