Motivators and Inhibitors of e-Commerce Technology Adoption: Online Stock Trading by Small Brokerage Firms in New Zealand

As electronic commerce becomes increasingly important in the global economy, it has the potential to change the dynamics of the global market and the way in which firms conduct their business. It is therefore important to understand the factors that motivate or hinder e- commerce adoption, and hence the development of the electronic market. This study investigates four full-service stock brokerage firms at various stages of adoption of online stock trading technology. The findings suggest that business strategy, perceived net benefits, strong management commitment, and external pressure are key factors motivating adoption. Conversely, poor alignment with business strategy, perceived low (or negative) net benefit (particularly low or nil return on EC investments), and low management commitment are likely to inhibit adoption. Contrary to expectations, technological and financial readiness were not found to be motivators of adoption.