Consumer Behavior in the Adoption of Peer-to-Peer Technologies: An Empirical Examination of Information Cascades and Network Externalities.

Abstract

The choice of technology adoption plays a critical role in attracting and maintaining customers. The TAM or TPB related model has dominated in the IS context for explaining an individual user’s adoption. However, consumers demand different perspectives in the EC environment to elucidate adoption of EC technologies. In this paper, we develop a conceptual framework for demonstrating adoption of EC technologies. In developing the theoretical model, we draw on the theory of network externalities and information cascading and then synthesize them to conceptualize the salient aspect of EC technology adoption. Specifically, we build upon the framework presented by Li (forthcoming) and postulate testable hypotheses for the effects of information cascades and network externalities in consumer adoption of peer-to-peer technologies. The evidence from our test indicates that information cascades play an important role in the user adoption decision.

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