In order tounderstand the acceptance of any new Information System (IS) or InformationTechnology, Technology Acceptance Model (TAM) is widely used (Davis, 1989;Davis, Bagozzi, & Warshaw, 1989).

It is used to predict an individual’s acceptance of variouscorporate IT systems (Adams, Nelson, & Todd, 1992; Chin & Todd, 1995;Doll, Hendrickson, & Deng, 1998). TAM has been adaptedfrom the Theory of Reasoned Action (TRA) (Ajzen & Fishbein, 1980; Fishbein& Ajzen, 1975) which is a general theory that predicts humanbehaviour.  Among the IT adoption modelsreported in literature, TAM has proved to be the most popular and is adopted bynumerous researchers in different countries in different settings. Singh et al (2006) emphasized thatTAM has been one of the most influential theories in the IT literature.  Through the years TAM has proven to berobust, powerful and parsimonious model for predicting user acceptance(Venkatesh and Davis, 2000). TAM asserts that perceivedusefulness and ease of use are fundamental determinants of system adoption andusage (Bankole et al.

, 2011). TAM has four stages namely: “beliefs, attitude, intention and use”. Thetwo primary variables that form belief are namely, “perceived usefulness” (PU)and “perceived ease of use” (PEU). Beliefs drive attitude which influenceintention and led to the actual use of technology.

Many recent studies haveapplied TAM when studying acceptance of online technologies like e-commerce(Pavlou, 2003), mobile payments (Dahlberg et al., 2003) and mobile commerce(Wei et al., 2009), online shopping (Tong, 2010). TAM was not developedoriginally to empirically test the acceptance of IT systems in the healthcareindustry, however many studies have been conducted to test TAM within thecontext of health (Holden, 2010). Perceived Easeof Use and Usefulness Perceived ease of use (PEOU) isdefined as “The degree to which the prospective user expects the target systemto be free of effort”. This factor is posited as influencing the adoption of onlinepharmacies because of the higher complexity in using a small device to conduct onlinetransactions.  Perceived ease of use may contributetowards performance, and thus the lack of it can cause frustration, and impairadoption of innovations (Davis, 1989; Taylor and Todd, 2001; Venkatesh, 1999;Venkatesh and Davis, 2000).Smartphones with relatively small screen sizes andassociated miniaturized keypads can constrain viewing of all informationregarding the drugs, and also lead to typing errors during paymenttransactions; thereby adversely affect the overall online pharmacy usageexperience.

 PrevisedUsefulness (PU) refers to the degree to which a person believes that using aparticular system would enhance his or her job performance. Some researchersalso believe there is a positive correlation between perceived usefulness andthe intention to use a technology (Cheong & Park, 2005; Venkatesh et al.,2003).  This is another important factorwhere there is repeated evidence not only in the adoption of informationsystems (Venkatesh and Davis, 1996, 2000; Venkatesh and Morris, 2000) but alsoin the area of mobile commerce (Wang et al., 2006).

An information system thatdoes not help people perform their tasks are not likely to be receivedfavourably (Nysveen et al. 2005). In the advanced models of TAM, Perceivedusefulness is also known as performance expectancy (Venkatesh et al., 2003).For the purpose of tis tudy, the items of PEOU and PU have been combinedtogether to form a new latent variable (LV) Perceived Ease of Use andUsefulness (PEUU).

Thus, the researchers posit the following hypothesis

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