Reexamining Relative Advantage and Perceived Usefulness

Abstract

Relative advantage and perceived usefulness are often used interchangeably in the literature. In this paper, the authors argue that this limits the understanding of the adoption of ICTs, especially when there are multiple alternatives. To address this issue, the authors reexamine relative advantage in relation to perceived usefulness, providing a re-specification of relative advantage and empirically testing a model that explores the roles of these constructs in explaining and predicting the adoption of a new technology in the presence of an existing one. The results demonstrate that perceived usefulness and relative advantage are related but distinct constructs. In particular, relative advantage fully mediates the effect of perceived usefulness of existing technology on the intention to use a new technology, and partially mediates the effect of perceived usefulness of the new technology on the intention to use it. The findings have important theoretical implications that help investigators better apply these constructs in research, as well as practical implications for ICT promotion strategy.