The adoption of B2B marketplace platforms by South African organisations: a technological organisational environmental perspective.

Abstract

Advances in digital technology have driven the development of online marketplaces and other platform-based businesses. There are examples of platforms that are highly successful with some becoming the most valuable businesses in the global economy. However, successful platforms are the exception and many have failed to scale and benefit from the network effects that facilitate their growth. The success of platform businesses depends largely on whether they are accepted and used. Attracting users to the platform is therefore essential. The purpose of this research was to explain the factors that influence the adoption of platforms by South African organisations. More specifically, the study focused on the adoption of business-to-business (B2B) marketplace platforms, which is a key type of platform that connects buyers within an organisation to organisations selling goods and services. The growth in B2B marketplaces is expected to increase substantially to account for 30% of online B2B sales by 2024. A model, underpinned by the Technology-Organisation-Environment (TOE) framework and extended by Institutional Theory (INT) was used to underpin the study. The TOE framework strives to explain the effects of technology-related and intra-organisational factors on the Information Systems (IS) innovation adoption process, whereas INT seeks to explain the effects of the inter-organisational factors on the adoption process. Taken together, nine factors were examined for their influence on the adoption of B2B marketplaces: (1) technological factors (security concerns, complexity, compatibility and cost); (2) organisational factors (top management support and perceived benefit); and (3) environmental factors (competitive pressure, trust and trading partner readiness). To examine their effects, this research utilised a relational, quantitative research approach. Data were collected from 87 South African organisations using a structured online questionnaire. The reliability and validity of the data were examined using Principal Component Analysis and assessing the computed Cronbach’s Alphas. The hypotheses were tested using logistical regression techniques. Results showed six of the study’s nine hypotheses were supported. The most important factors are competitive pressure, top management support and perceived organisational benefits. The least important are technology security, compatibility and cost. Thus, B2B marketplace adoption appears more strongly influenced by organisational and environmental considerations than by technical considerations, although some technology factors are potentially significant. This study deals with a gap in IS adoption literature by studying the B2B marketplace artefact specifically in the South African context. In addition, using the strengths of both the TOE framework and INT further deepens the understanding of the adoption phenomenon in the IS discipline.