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SMARTPHONES’ UTILIZATION IN
MANAGERIAL PRACTICES OF SMEs
IN SARAJEVO CANTON AREA
Supervisor: Assoc. Prof. Dr. Erkan Ilgun
Student: Hanefija Selek
ABSTRACT
• Main objective of this study is to identify factors that influence adoption ofsmartphones by managers in small and medium sized enterprises (SMEs) ofSarajevo Canton area. On the basis of literature review, six independent and onedependent variable have been identified, and specific measuring items weredeveloped accordingly. Structured survey was prepared on the basis of mentionedmeasuring items to measure related variables, and it was used as main instrument inthis study. Survey has been sent in online form to managers working in SMEs ofSarajevo Canton area via e-mail and social networks. Out of 200 managers whoreceived the survey, 148 respondents completed it which gives response rate of74%. Responses were analyzed using descriptive statistics in excel, but mainmethodology was regression analysis using SPSS.
ABSTRACT (cont.)
• The findings indicated that there is a significant positive relationship between PerceivedUsefulness (PU), Product Price (PP) and Social Influence (SI) on Purchase Behavior (PB).On the other hand, there is no relationship between Perceived Ease of Use (PEoU), BrandName (BN), Dependency (D) and PB. The most significant positive relationship wasbetween SI and PB, but still there is significant effect of PU and PP. Limitation of this studyis not very high Adjusted R Square since model used in this study explains 52,3 % ofvariance in PB considering mentioned independent variables. Also, research is completed inone canton of the country and limited to managers of SMEs. It is suggested for futureresearch to test more different independent variables and do the research in all cantons ofFederation of Bosnia and Herzegovina, entity Republic Srpska and District Brčko. Also, it issuggested to focus on other target groups beside managers.
• Key words: Smartphone, Adoption, Utilization, Managers.
INTRODUCTION
Purpose
• Lack of domestic literature regarding smartphones utilization by citizens of
Bosnia and Herzegovina;
• Main purpose of this work is to find out what is it that influences managers
of SMEs in Sarajevo Canton Area to buy a smartphone, and how strong
those influencing factors are.
INTRODUCTION
Importance and contribution
• It is impossible to imagine people‘s daily lives without smartphones;
• Smart version of mobile phones has positive trend line in all its aspects: number ofsmartphones' producers, number of smartphones' consumers, and number of optionsprovided, functionality, capabilities etc.;
• All serious literature written is mainly related to U.S., China and other developed countries, while there is no research conducted in transition countries such are Bosnia & Herzegovina.
• There is no literature that exactly explains the level of their managerial smartphones adoption, especially when it comes to region of Bosnia and Herzegovina.
INTRODUCTION
The Objectives of Study
• The primary objective of this study is to identify the factors that influence managersof SMEs in Sarajevo Canton Area while buying a smartphone. In other words, mainobjective is to test relationship between Purchase Behavior as dependent variable,and six independent variables as follows: Perceived Usefulness (PU), Perceived Easeof Use (PEoU), Brand Name (BN), Product Price (PP), Social Influence (SI) andDependency (D).
• The secondary objective of this study is to descriptively present difference amongopinions regarding smartphones of managers of different age groups, genders andeducation levels.
INTRODUCTION
The Used Methodology
• Based on seven variables, measuring items and survey questions were
created. Target population was comprised of managers working in SMEs of
Sarajevo Canton Area. Response rate of 74% was good enough to generalize
data in the level of Sarajevo Canton area.
• Once the results were collected, regression analysis via SPSS has been used
to determine the relationships among variables. In the same time, for
purpose of conducting descriptive analysis, Excel has been used.
THEORETIC BACKGROUND AND
LITERATURE REVIEW
Defining smartphones
• Smartphones are distinguished from earlier mobile phone generations by their
sophisticated features that support Internet access, video/audio streaming, text
messaging, e-mail, Global Positioning System (GPS) navigation, Personal Information
Management (PIM), and business productivity applications (Chang et al., 2009).
THEORETIC BACKGROUND AND
LITERATURE REVIEW
Defining smartphones
• According to Dong-Hee Shin (2012), a smart device is an electronic device that is
cordless, mobile, always connected and is capable of voice and video communication,
internet browsing, geo-location and that can operate to some extent autonomously.
Smartphones are now more than just a mobile telephone and they are indeed not only
a cultural artifact, but an extension of their users’ social status. He mentioned iPhone
as example (Dong-Hee Shin, 2012).
THEORETIC BACKGROUND AND
LITERATURE REVIEW
Defining smartphones
• Norazah Mohd Suki (2013) defined smartphones as a combination of personal device
assistants and mobile phones that use advanced operating systems and permit users to
install new applications, be constantly connected to the internet, and provide
multifarious functionalities of both. In addition, he stated that smartphones are
increasingly entwined in people’s everyday activities as it makes their lives easier access
the internet 24 hours a day, seven days a week, and 365 days a year.
THEORETIC BACKGROUND AND
LITERATURE REVIEW
THEORETIC BACKGROUND AND
LITERATURE REVIEW
THEORETIC BACKGROUND AND
LITERATURE REVIEW
• Wei and Lo (2006) were writing about virtual mobility
that will provide faster and more personalized social
interaction.
• As the market has been developing, number of
smartphones’ producers was increasing over time.
Accordingly, there are many different smartphone
producers nowadays such are: Samsung, Apple,
Microsoft, Nokia, Sony, LG, HTC, Motorola,
Huawei, Lenovo, Xiaomi, Acer, Asus, Oppo,
BlackBerry, Alcatel, ZTE etc. (Gsmarena, 2015).
THEORETIC BACKGROUND AND
LITERATURE REVIEW• When speaking about adoption and utilization of any kind of technology, it is impossible to not mention Davis
(1989) and his Technology Acceptance Model (TAM). The whole TAM is about relationship between Perceived
Usefulness and Perceived Ease of Use in one side, and User Acceptance of Information Technology on another
side. Two variables from this model were tested in this study in terms of their influence of Purchase Behavior.
THEORETIC BACKGROUND AND
LITERATURE REVIEW• Norazah Mohd Suki (2013) examined structural relationships of product features, brand name, product price and
social influence with demand for Smartphones among Malaysian students. Results indicated that brand name and social influence have an effect on the increasing demand for Smartphones among Malaysian students. Brand name was more influential factor compared to social influence.
• Ding Hooi Ting, Suet Fong Lim, Tanusina Siuly Patanmacia, Ca Gie Low and Gay Chuan Ker (2011) researched dependancy on smartphone and the impact on purchase behavior. More accurately said, he investigated the effect of convenience, social needs and social influences on university students' dependancy towards smartphones and the impact on purchase behavior. His results indicated that university students’ dependency on smartphones is influenced by convenience, social needs and social influences and dependency is positively related with future purchase behaviour.
• In the end of literature review section, the one can conclude that smartphones have both, pros and cons for the society, but still they are important and inseparable part of our daily both, private and business lifes. On the basis of several important influencing factors mentioned in this section, as a main result of this literature review, model presented in Figure 1 has been prepared.
MODEL DEVELOPMENT
HYPOTHESIS
• H1: Smartphones’ Perceived usefulness positively influence Purchase behavior of Managers in SMEs of Sarajevo
Canton area.
• H2: Smartphones’ Perceived Ease of Use positively influence Purchase behavior of Managers in SMEs of Sarajevo
Canton area.
• H3: Smartphones’ Brand Name positively influence Purchase behavior of Managers in SMEs of Sarajevo Canton
area.
• H4: Smartphones’ Product Price positively influence Purchase behavior of Managers in SMEs of Sarajevo Canton
area.
• H5: Social influence positively affects Purchase behavior of Managers in SMEs of Sarajevo Canton area
• H6: Dependancy on Smartphones positively affects Purchase behavior of Managers in SMEs of Sarajevo Canton area.
HYPOTHESIS
RESEARCH METHODOLOGY
• Structured survey prepared for this research has been prepared on the basis of seven variables. It is divided into
eight sections:
1. Demographics,
2. Perceived Usefulness,
3. Perceived Ease of Use,
4. Brand Name,
5. Product Price,
6. Social Influence,
7. Dependency and
8. Purchase Behavior.
RESEARCH METHODOLOGY
• These mentioned eight sections could be grouped into three broader parts. First part
of survey includes demographical questions that are prepared with aim to learn more
about characteristics of respondents. This enables comparative analysis of the results
per different groups of respondents (for ex. respondents of males vs. females).
• Second part of the survey are questions measuring six independent variables:
Demographics, Perceived Usefulness, Perceived Ease of Use, Brand Name, Product
Price, Social Influence and Dependency.
• Third part of the survey are questions measuring dependent variable, Purchase
Behavior.
RESEARCH METHODOLOGY
• Part 1 - Demographics
RESEARCH METHODOLOGY
• Part 2 & 3 - Measuring Variables
SURVEY QUESTIONS
NO CONSTRUCTMEASURING
ITEMNO SURVEY QUESTION
ADAPTED
FROM
1Perceived
Usefulness (PU)
Perceived
Usefulness1 I perceive smartphone's services as useful Davis (1989);
Dong-Hee
Shin (2012)Functionality 2I perceive smartphone's services as practical and
functional
2Perceived Ease of
Use (PEoU)
Eease and
clarity3
In my opinion, smartphones provide feeling that
interface design and information delivery are both, clear
and easy to understandDavis (1989);
Dong-Hee
Shin (2012)Ease of
handling4
I perceive smartphones as devices easy to handle when I
encounter problems
3 Brand name
Recognition 5I prefer to buy an internationally well known &
recognized smartphoneNorazah
Mohd Suki
(2013)
Security &
Trust6
I prefer to buy a brand of smartphone which is secure
and trustworthy
Name 7When buying a smartphone, brand name is a decisive
factor for me
SURVEY QUESTIONSNO CONSTRUCT
MEASURING
ITEMNO SURVEY QUESTION ADAPTED FROM
4 Product price
High price 8 I am willing to buy a smartphone regardless of its high price
Norazah Mohd
Suki (2013)
Discounts 9 I will only buy a smartphone during a discount period
Expense 10 I think that using smartphone is luxuary for me
Price main driver 11 Price is my main consideration when deciding whether to buy a smartphone
5 Social influence
Using
smartphones by
family and
friends
12 Almost all of my friends and family members are smartphone users
Norazah Mohd
Suki (2013)Family and
friends'
perception
13My friends and family members are of opinion that we should all use
smartphones
Surrounding 14 People in my surrounding have encouraged me to use smartphone
Friends'
preferences15
It is important that my friends like and favor the brand of smartphone I’m
usingDing Hooi Ting
Suet Fong Lim
Tanusina Siuly
Patanmacia Ca Gie
Low Gay Chuan
Ker (2011)
Family and
friends' pressure16 The pressure from friends and family is the reason for me to buy smartphone
Supporting
socialization17 I would buy a smartphone if it enables me fit in with my social group better
SURVEY QUESTIONSNO CONSTRUCT MEASURING ITEM NO SURVEY QUESTION ADAPTED FROM
6 Dependancy
Usage intensity 18 Usage of smartphone is high in my daily life, Ding Hooi Ting
Suet Fong Lim
Tanusina Siuly
Patanmacia Ca
Gie Low Gay
Chuan Ker
(2011)
Feeling of
insecurity19 I would feel insecure if my smartphone is not with me
Using for job 20 I always use smartphone when dealing with my job
Reliance 21 I cannot do anything regarding my job without the smartphone
Total dependance 22 I’m totally depending on my smartphone
7Purchase
behavior
Satisfaction 23 In general, I’m satisfied with my smartphone experience Ding Hooi Ting
Suet Fong Lim
Tanusina Siuly
Patanmacia Ca
Gie Low Gay
Chuan Ker
(2011)
Experience 24Overall, my positive experience outweighs my negative experience with
smartphone
Future usage 25 I intend to continue and increase usage of smartphone in the future
Improved
purchase26
I intend to have a better purchase of smartphone in the future from my
experience
Intention to use 27I intend to continue using smartphone even though if there is new mobile
phone in the market
Norazah Mohd
Suki (2013)
E-commerce 28 I intend to use smartphone purpose of e-commerce
Details 29 I will learn more details about smartphones
Recommending 30 I intend to recommend and suggest others to use smartphone
ONLINE SURVEY
ONLINE SURVEY
METHODOLOGY
Methodology
• As this study represents quantitative research, main methodology after
collecting data through survey as an instrument will be quantitative statistical
analysis using both descriptive data in Excel and regression analysis in SPSS.
• Response rate was good, and survey results were collected in quite short
period of time. This means that response rate of 74 % was satisfactory
enough to generalize data in the level of Sarajevo Canton area.
METHODOLOGY
Sample
• Target sample for this study was consisted of managers employed in SMEs
of Sarajevo Canton area. Out of two hundreds emailed potential
respondents, 148 of them replied to survey which leads to response rate of
74%.
METHODOLOGY
Reliability and Validity
• The main evidence that survey questions used for purpose
of this research were valid is fact that no one among
respondents complained about the survey questions, and
that all survey questions are based on the previously done
research.
• When it comes to reliability of the survey, reliability test
has been performed after collecting the data. Results of
reliability test indicated that survey is completely reliable
instrument for this study due to fact that Cronbach’s
Alpha value was 0,834 which is higher than 0, 7.
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
DESCRIPTIVE RESULTS
RESULTS OF REGRESSION
RESULTS OF REGRESSION
RESULTS OF REGRESSION
RESULTS OF REGRESSION
RESULTS OF REGRESSION
RESULTS OF REGRESSION
RESULTS OF REGRESSION
CONCLUSION
• The primary objective of this study was to identify the factors that influence managers of SMEs in Sarajevo Canton
Area while buying a smartphone. In other words, main objective is to test relationship between Purchase Behavior
as dependent variable, and six independent variables as follows: Perceived Usefulness (PU), Perceived Ease of Use
(PEoU), Brand Name (BN), Product Price (PP), Social Influence (SI) and Dependency (D).
• The secondary objective of this study is to descriptively present difference among opinions regarding smartphones
of managers of different age groups, genders and education levels.
• Based on seven variables, measuring items and survey questions were created. Target population was comprised of
managers working in SMEs of Sarajevo Canton Area. Response rate of 74% was good enough to generalize data in
the level of Sarajevo Canton area.
• Once the results were collected, reliability test of survey as an instrument has been completed. Chonrbach Alpha
value was greated than 0.7 which indicated that the reliability of survey is satisfactory.
CONCLUSION (CONT.)
• Results indicated that PU, PP and SI are having influence on PB while PEoU, BN and D do not affect
PB. Results of descriptive statistics indicated that there are differences in opinions of males and
females, opinions of young vs. old respondents and highly educated vs. those respondents with lower
education level.
• Main limitation of this research is fact that it was focused on one canton, and it is suggested to
conduct the same research in other cantons, entity Republic Srpska and District Brčko. Also,
conducting comparative analysis of results per cantons, entities or other regions of B&H could be
good proposal for future research. Also, it is suggested to add more factors that could influence
purchase behavior, and to focus on other target groups, not only managers.
THANK YOU FOR YOUR ATTENTION
• Assoc. Prof. Dr. Erkan Ilgun
• Hanefija Selek