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

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V niversity of Economics

Ho Chi Minh City

Vietnam

Institute of social studies

The Hague

Netherlands

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Vietnam - Netherlands

Project forMA Program in Development Economics

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DETERMINANTS OF

APPLICATION SOFTWARE ADOPTION:

The Case of SMEs in HCMC

By

LE THANH BINH

Academic Supervisor:

Associate. Dr. NGUYEN DINH THO

I Ho Chi Minh City, March 2011

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Declaraiion

I declare that the thesis hereby submitted for the Master degree at the Vietnam￾Netherlands Program for M.A in Development Economics is my own work and has not

been previously submitted by me at another university for any degree.

Ho Chi Minh City, March 2011

Le Thanh Binh

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Acknowledgements

In the first of all, my heartfelt thank goes to my supervisor, Associate Dr. Nguyen Dinh

Tho. During the course of my thesis research and writing, I received precious guidance,

useful comments and encouragements. My deepest thank also goes to Associate

Professor Dr. Nguyen Trong Hoai, Co- Director of Vietnam - The Netherlands

Program for M.A. in Development Economics, for his encouragements during the

course and thesis research. In addition, I wish to offer much thanks to: my kindly and

enthusiastic classmate, Mr Nguyen Ngoc Danh, who was always ready to give me his

ideas and recommendations; my friend and ex-colleague, Mr. Marc Nguyen, who

assisted me to edit English writing of my thesis.

My heartfelt gratitude also goes to my wife and my son, Trinh and Trung Quoc, who

are my love and motivation during the studying time.

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Abstract

This study mms to investigate the factors that affect the adoption of application

software by SMEs in Ho Chi Minh City. A sample of 140 firms in HCMC was

surveyed to test the model.

It was found that perceived usefulness and ease of use of application software are

potential predictors of application software adoption. It was also found that IT

knowledge has impacts on the adoption of application software. BOM Innovativeness

was not significant. It may be due to the limitation of this study. Some questionnaires

were answered by who were not from BOM and the sample was not large enough to

make sure the results are entirely credible.

The findings of this study suggest that the government and software firms should focus

on improving the IT knowledge of people who work in the office, especially people

from BOM. Software fim1s should promote the usefulness and ease of use of

application software. In addition, the laws of intellectual property and laws to protect

the software users are also recommended to the government.

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Table of Contents

DECLARATION ..................................................................................................... I

ACKNOWLEDGEMENTS .................................................................................. 11

ABSTRACT .......................................................................................................... III

TABLE OF CONTENTS .................................................................................... IV

LIST OF FIGURES ............................................................................................. VI

LIST OF TABLES .............................................................................................. VII

LIST OF EXHIBITS ........................................................................................ VIII

ABBREVIATION ............................................................................................. VIII

CHAPTER 1 - OVERVIEW .................................................................................. !

1.1 INTRODUCTION ............................................................................................... 1

1.2 THE CONTEXT OF VIETNAMESE SOFTWARE INDUSTRY .................................. 2

1.3 OBJECTIVES OF THE RESEARCH ...................................................................... 5

1.4 RESEARCH QUESTIONS ................................................................................... 5

1.5 RESEARCH METHODOLOGY AND SCOPE ......................................................... 5

CHAPTER 2- LITERATURE REVIEW ............................................................ 7

2.1 INTRODUCTION ............................................................................................... 7

2.2 DEFINITIONS ................................................................................................... 7

2.3 THEORIES AND EMPIRICAL STUDIES ............................................................... 8

2. 3.1 Innovative ness ........................................................................................ 9

2.3.2 Perceived Usefulness .............................................................................. 9

2.3.3 Perceived Ease ofUse .......................................................................... 11

2.3.4 IT Knowledge ............................................................................ ........... 11

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2.3.5 Size ofFirms ......................................................................................... 12

2. 3. 6 Competitive Intensity ............................................................................ 13

2. 3. 7 Type of Business .................... , .............................................................. 13

CHAPTER 3 - METHODOLOGY ..................................................................... 15

3.1 INTRODUCTION ............................................................................................. 15

3.2 RESEARCH PROCESS ........................................ ········· .................................... 15

3.2.1 Questionnaire Design ........................................................................... 15

3.2.2 Survey Design ....................................................................................... 16

3.3 0PERATIONALIZATION OF MEASUREMENT .................................................. 16

3. 3.1 Dependent Variable .............................................................................. 16

3.3.2 Independent Variables .......................................................................... 18

3.3.2.1 BOM Innovativeness ................................................................................ 18

3.3.2.2 BOM IT Knowledge ................................................................................. 18

3.3.2.3 BOM Perceived Usefulness ...................................................................... 19

3.3.2.4 BOM Perceived Ease of Use .................................................................... 20

3.3.3 Moderator Variables ............................................................................ 21

3.3.3.1 Competitive Intensity ................................................................................ 21

3.3.3.2 Business Size ............................................................................................ 22

3.3.3.3 Type of Business ....................................................................................... 22

3.3.4 Measurement Scale and Notation ofVariables .................................... 22

3.3.4.1 Measurement Scale ................................................................................... 22

3.3.4.2 Notation of Variables ................................................................................ 23

3.4 SURVEY DESIGN ........................................................................................... 23

CHAPTER 4- FINDINGS AND DISCUSSION ............................................... 24

4.1 INTRODUCTION ............................................................................................. 24

4.2 THE SAMPLE ........................................... ~· ..................................................... 24

4.3 DESCRIPTIVE ANALYSIS ............................................................................... 24

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4.4 RELIABILITY ANALYSIS ............................................................................... 26

4.5 REVISE MODEL ............................................................................................. 27

4.6 FACTOR ANALYSIS.·········· ............................................................................ 28

4.7 OLS REGRESSION ......................................................................................... 31

4.8 HYPOTHESIS TESTING .................................................................................. 34

4.9 DISCUSSIONS ................................................................................................ 37

CHAPTER 5-IMPLICATIONS AND CONCLUSIONS ................................ 39

5.1 INTRODUCTION ............................................................................................. 39

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5.2 MAIN RESULTS CONTRIBUTION AND IMPLICATIONS ..................................... 39

5.3 LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCHES ........................ .42

REFERENCES ................................................. · ..................................................... 43

APPENDICES ....................................................................................................... 48

APPENDIX 1: THE QUESTIONNAIRE .......................................................... .48

APPENDIX 2: NOTATION OF VARIABLES .................................................. 55

APPENDIX 3: CRONBACH'S ALPHA ............................................................ 57

APPENDIX 4: FACTOR ANALYSIS ................................................................ 60

APPENDIX 5: HETEROSKEDASTICITY TEST ............................................ 63

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