This paper establishes inadequacies of the Unified Theory of Acceptance and Use of Technology (UTAUT) theory to explain social media adoption by microbusinesses. Literature review confirms the explaining power of UTAUT in variety of technology adoption by businesses. This paper uses UTAUT theory to implement social media technology in microbusinesses. Canonical action research method is adopted to introduce social media in microbusinesses. A post positivist approach is used to report the results based on a predetermined premise. It was found that the major constructs of performance and effort expectancy played insignificant role in establishing behavioural and adoption intention of social media by microbusinesses. Social influence and facilitating condition did not influence the behavioural intentions of the microbusiness owners. Individual characteristics and codification effort dominated the use behaviour. Goal of gaining customers leads to behavioural modification resulting in replacing of behavioural intention with goals as a superior method of predicting adoption behaviour within the context of microbusinesses. This paper extends the UTAUT to explain social media adoption in microbusinesses.

1. New Zealand Information Systems Doctoral Consortium – Conference held on 31st August 2012 at
University of Waikato
Debashish Mandal - University of Waikato dm110@waikato.ac.nz
Chief Supervisor: Prof. Robert J McQueen
Supervisor: Dr. Stuart Dillion and Dr. Karyn Rastrick
Title
Extending UTAUT to explain social media adoption by microbusinesses
Abstract
This paper establishes inadequacies of the Unified Theory of Acceptance and Use of Technology
(UTAUT) theory to explain social media adoption by microbusinesses. Literature review confirms the
explaining power of UTAUT in variety of technology adoption by businesses. This paper uses UTAUT
theory to implement social media technology in microbusinesses. Canonical action research method
is adopted to introduce social media in microbusinesses. A post positivist approach is used to report
the results based on a predetermined premise. It was found that the major constructs of performance
and effort expectancy played insignificant role in establishing behavioural and adoption intention of
social media by microbusinesses. Social influence and facilitating condition did not influence the
behavioural intentions of the microbusiness owners. Individual characteristics and codification effort
dominated the use behaviour. Goal of gaining customers leads to behavioural modification resulting
in replacing of behavioural intention with goals as a superior method of predicting adoption
behaviour within the context of microbusinesses. This paper extends the UTAUT to explain social
media adoption in microbusinesses.
Key words
UTAUT, social media, action research, microbusiness

2. New Zealand Information Systems Doctoral Consortium – Conference held on 31st August 2012 at
University of Waikato
Social media is being adopted by business primarily to talk with the customer rather than the old
method of talk at the customer. Applications are simple, free; web based, and depends on content,
which is generated by the user. It supports parallel multiple communications with business to
consumer, consumer to consumer, and a network of forums or groups. These groups specialises in
subjects or share common interest having a great influence on buying decisions of a buyer. Businesses
are trying to participate in this communication to gather perception of customers about products and
get ideas about new product development. Another prominent use is dissemination of information
such as daily deals, which can be broadcasted by the business to a select target group of users who
have opted to receive this information. The micro broadcasting capability to a select group has been
used recently in various campaigns prominently the Egypt revolution. The people were able to self-
organise and keep up the tempo by publishing photos of the struggle and gather world support leading
to the ultimate over throwing of the government.
The micro publishing feature has revolutionised small businesses that are able to circumvent large and
expensive media to bring attention, market and sell their products and services. Many microbusinesses
have adopted Twitter and Facebook with varying levels of success. The primary question that arises
how can microbusiness take advantage of the micro publishing feature of the social media for their
businesses? This paper aims to answer this question using UTAUT the most dominant adoption
theory that explains almost seventy per cent of variance in adoption behaviour. The literature review
identifies the gap in the literature to establish the uniqueness of this investigation. Next, research
questions are framed and following a post positivist approach suitable propositions has been
developed. The action research method is described along with the data analysis process. The results
of the investigation are presented followed by the discussion section that links back to the literature
review and propositions pointing out agreement and disagreements with the same. Finally, before
concluding, the primary limitation of single case study (rigour) and ways to circumvent the same is
detailed.
Literature review
The review identifies gap in the literature on microbusiness adoption of information systems using the
UTAUT theory. Scant investigation has been performed using the UTAUT in small business sector.
In reference to social media, limited investigation has been performed on its adoption by businesses
using the UTAUT. These investigations primarily used TAM. This research addresses the gap by
providing the knowledge on the predicting capability of UTAUT in social media adoption by
microbusinesses. For detailed analysis of UTAUT reader can refer to Dwivedi, Mustafee, Carter, &
Williams (2010); Dwivedi, Rana, Chen, & Williams (2011) and Oye, A.Iahad, & Ab.Rahim (2012).
The first two are biblometric analysis and meta-analysis the third being a complete history of
UTAUT.
Specific extensions to the UTAUT has been covered by Venkatesh, Thong, & Xu (2012) proposing
the UTAUT2 specifically from individual consumer context adding habit, hedonic motivation and
price value as new constructs. Habit in UTAUT2 is obtained from the individual characteristics theory
also called as the big five personality traits. Such extension has been performed by Devaraj, Easley, &
Crant (2008) adding individual characteristics to the UTAUT. Microbusiness owners are individuals
and their characteristics may play an important role in adoption of social media. UTAUT construct of
behavioural intention has been questioned by Venkatesh, Brown, Maruping, & Bala (2008) suggesting
behavioural expectation as an appropriate replacement for behavioural intention. The relation between
behavioural intention and use behaviour has been questioned by Sheppard, Hartwick, & Warshaw
(1988). Bagozzi (2007) opines that, “the intention-behaviour linkage is probably the most uncritically
accepted assumption” (p. 245) turning in favour of a goal oriented model.
UTAUT and technology diffusion theory has been used to understand social media adoption (Twitter)
in a business environment. Günther, Krasnova, Riehle, & Schondienst (2009) identify codification
effort and reputation as new constructs affecting behaviour in adoption of twitter for inter office
communication. Time and privacy was the overriding concern for all the participants. DiMicco et al.

3. New Zealand Information Systems Doctoral Consortium – Conference held on 31st August 2012 at
University of Waikato
(2008) find out that caring, climbing and campaigning are the biggest motivators of use of social
media for IBM employees. Barnes & Böhringer (2011) identify habit as a dominant factor for use of
micro blogging in a business communication environment. The habit construct points to individual
characteristics as incorporated in UTAUT2. Turban, Bolloju, & Liang, (2011) identify that social
networking in enterprises poses several risk in terms of legal risk, internet resources, security,
intellectual property and misuse by employees by wasting time on such networks.
Finally within microbusiness literature on technology adoption Qureshil, Kamal, & Wolcott (2009)
identify technical ability of the owner as the primary lacunae in successfully leveraging the
technology. The technical ability can be easily linked to individual characteristics and innovativeness
discussed above. Literature on microbusinesses focuses on scarce resources leading to predominance
of networking and sharing. However, such networking is necessarily offline and hence not considered
in this literature review. Time can be a scarce resource and has been considered earlier above.
Technology adoption literature on Small and medium enterprise (SME) is substantial such as Li,
Troutt, Brandyberry, & Wang (2011) identify relative advantage as the main factor in post technology
adoption. Street & Meister (2004) establish the role of information systems to compliment the
informal communication system existing internally and externally in an SME. Macredie & Mijinyawa
(2011) identify relative advantage, compatibility complexity, and self-efficacy to play a prominent
role in open source software adoption by SME’s.
The literature gap positions this research as unique providing the much-needed knowledge on
applicability of UTAUT in social media adoption by microbusinesses. Secondly, role of individual
characteristics in social media adoption by microbusiness owner would be a valuable contextual
addition to the UTAUT theory and the existing body of knowledge. Finally, converting the UTAUT to
a goal-oriented model would increase the relevance of the overall model from a practitioner
perspective.
Research Questions
The research seeks to address the following question: How is social media adopted by
microbusinesses? To address this question UTAUT has been used as the theoretical base to
understand the adoption process of social media by microbusinesses. It is expected that the key
construct performance expectancy will play a prominent role in influencing the behavioural pattern of
microbusiness owners leading to greater use of social media tool. Secondly, due to the simplicity of
social media tools effort expectancy will play a non-significant role leading to immediate use of social
media by microbusiness owners. Social influence including image will play a pivotal role such that
the microbusiness owners will enjoy a higher self-esteem in being able to use a new and in-fashion
technology for marketing. Finally facilitating condition will play the role of a moderator such as it
will be important in the initial stages of adoption as originally theorised by UTAUT. The role of age,
gender, and experience is beyond the scope of this investigation. Voluntariness is not included for
reasons as cited in UTAUT2.The reporting style of this paper follows the recommendations by
DeLuca, Gallivan, & Kock (2008).
Method
Weak constructionist approach is followed with focus on examining utility of an artefact and limited
emphasis on reality. An action research method is employed by introducing social media Facebook
business page in the microbusiness. Training on use along with awareness has been planned on two
canonical action research cycles. A third unplanned cycle was required after completion of the first
two cycles. The third cycle inserts an illustrative demonstration for the participant to exemplify the
use of Facebook business page by similar businesses. The initial cycles are driven by UTAUT to
develop and guide the adoption process. The author is aware that UTAUT is a theory from the
positivist domain and this research hopes to extend the knowledge using an interpretive strategy. This
approach is consistent with Lee, (1994) who has interpretively examined media richness theory. The
first cycle was conducted evaluated and learning captured to lead to the second cycle. Evaluation and

4. New Zealand Information Systems Doctoral Consortium – Conference held on 31st August 2012 at
University of Waikato
learning from the second cycle required a third cycle. Due to space restriction the evaluation and
learning is reported in the results. It is understood that the evaluation and learning took place in
cycles.
Data collection is done by participant observation (memos) and unstructured interviews during the
action research implementation and finally a semi-structured interview after implementation and
adoption. Participant observation is possible since the facebook business page is a public tool.
Activity of the microbusiness owner on the tool can be easily observed. The observation is recorded
as memos for analysis. Data triangulation is done by conducting interview from two similar
microbusinesses already using facebook business page. Secondary data is obtained from the facebook
business pages and business mentors. This data is collected using social media tools such as Twitter,
LinkedIn, Facebook, and Blogs. Data analysis follows the recommendations from Baskerville (1999)
and DeLuca et al., (2008). Data collection and analysis is performed simultaneously through each
stage of diagnosis, action planning, action taking, evaluating and specifying learning. A list of code is
developed from theory such as efficacy, effort, performance, time, and goals for initial data analysis.
This initial codes help in early categorisation of the data during data collection. Later data is then
open coded followed by axial and selective coding to develop core categories. The coding activity is
performed using NVivo. Triangulation data is analysed following the above process. Follow-up
interviews and observation of the page is carried out after six months for confirmation of results.
Results
Contrary to the expectation, though the microbusiness owner is aware of the usefulness of Facebook
business page but is not capable and hesitant to use the same. Facebook business pages are technically
simple to use but the microbusiness owner struggled to find suitable content to engage the customer.
Time spent to use the tool become an important criteria to use the tool. Participants felt that it was
much easier to use the radio and print media rather than the social media site. On completion of the
first two cycles, the use of the tool died down after the initial “new” euphoria. The owner did not see
any benefit in using the tool in comparison to effort required for using the same. The microbusiness
owner was not greatly influenced by social situation. Image played little role over business
consideration. The owners had a headstrong belief leading to very little addition by the facilitator in
this case the researcher himself.
Discussion
The primary construct of UTAUT performance expectancy (which includes relative advantage) has
reduced importance in a social media adoption scenario. Bagozzi (2007) argues that “a person can
recognize and even accept that PU or attitudes are favourable criteria for deciding to act, but have no
desire to act and even explicitly decide not to act in the face of these reasons” (p. 245). This seems to
be also in contradiction to Li et al. (2011) and Macredie & Mijinyawa (2011) who have identified that
relative advantage plays important role in use of new technology by SME’s. New constructs under
effort expectancy such as codification effort and time required to use the tool downplayed the
importance of the tool. This is in agreement with finding of Günther et al. (2009) who have
highlighted the problem of finding the appropriate content. At this stage, it is not possible to establish
a causal relationship between the two constructs since data was not collected to support the same.
When the owners were presented with an illustrative module of use of the tool by exact same
businesses, they decided to make effort to use the tool. The owners reviewed the illustrative module
and decided to modify their behaviour towards using the tool with one of the owners taking the lead.
The successful microbusiness owners who have been using the page innovatively to the advantage of
their business seemed to have a positive effect on participants approach towards the tool. The
illustrative module invigorated the use of the facebook business page leading to substantial use by the
participant. This suggests that individual characteristic of innovation and training seems to play the
most deterministic role in adoption of social media by microbusiness. This is consistent with the
finding of Devaraj et al. (2008) and Venkatesh et al. (2012) who have pointed out the role of

5. New Zealand Information Systems Doctoral Consortium – Conference held on 31st August 2012 at
University of Waikato
individual characteristics. This research did not find any evidence of importance of habit as a
construct advocated by Venkatesh et al. (2012) and Barnes & Böhringer (2011). Consistent with the
finding of DiMicco et al. (2008) campaigning for its products and services took precedence rather
than customer care. As the participants saw value (usefulness) with customers responding to some of
their posts they made a proactive effort to use the tool. This point out that microbusiness owners are
enterprising people highly goal oriented and willing to do the necessary to achieve their goals. The
behavioural intention construct seemed to lose importance in face of desire to achieve their goals
determining the maximum indicator of adoption. It confirms the findings and propositions of Bagozzi
(2007), Venkatesh et al. (2008) and Sheppard et al. (1988). Based on the findings Figure 1 below
summarises the extended model of social media adoption by microbusiness.
Figure 1 Extended UTAUT Model
Individual Characteristics
1. Innovativeness
2. Personality Traits
Social Media Use Goals
Effort Expectancy 1. Duration 1. Gain New Customer
1. Codification Effort 2. Frequency 2. Engage Customer
2. Time Required 3. Intensity 3. Word of Mouth Marketing
Performance Expectancy
1. Usefulness
2. Outcome Expectations Moderator
Social Influence Facilitating Conditions
1. Social Factors 1. Training & Support
Theoretical contributions
From Figure 1it is theorised that desire to achieve goals using the social media tool primarily play the
most important indicator of adoption. Microbusiness owners are capable of undergoing modification
to their behaviour to achieve their goals. Achievement of goals would be primary and the maximum
motivator leading to social media adoption. Goal achievement is based on individual characteristics
which is the second most important construct followed by effort expectancy. The two-way arrow
indicates that social media use evolves over time as the owner develops a comfort zone and gets used
to the medium and the idea of chatting with the customers. As the owner achieves the goal of gaining
new customers it provides encouragement to try out new ideas, spend more time, and understand the
usefulness of the medium. The loop continues as the owner discovers new use of the social media
tool. The developed theory will be used to implement and examine social media adoption in other
microbusinesses to validate the theory and refine the findings.
Implications for research
A fresh look is required for use of TAM and UTAUT specifically while examining technology
adoption by microbusinesses. Due to single case study, the individual characteristics could not be
examined in detail. It leaves questions unanswered such as why personality trait is relevant for social
media adoption by microbusinesses. Goal oriented models need to incorporated rather than
behavioural intentions, which have a greater capability to predict technology adoption by

6. New Zealand Information Systems Doctoral Consortium – Conference held on 31st August 2012 at
University of Waikato
microbusinesses. In the positivist sense, it is necessary to compare the efficiency of a goal-oriented
model against a behaviour-based model. Paradigmatically the balancing of reality (behaviour) versus
use of an IT artefact (goal) model would require efficient research design. There may be causal
relationship between individual characteristics and effort expectancy, which can be explained better
through an interpretive standpoint. In the usual positivist argument high effort requires a challenge-
oriented person (individual characteristics) to play a pivotal role in deciding extend of adoption. Such
a straightforward relationship could be difficult to establish since innovativeness can play spoilsport.
The nature of innovativeness is a personal trait, which can be better explored through further close
contact interpretive investigations. Overall, further investigation is necessary to establish straight
forward hypothesis for positivist oriented investigation.
Strengths and limitations
Action research employed helped the researcher to portray the adoption process at extremely close
quarters within the business. Data triangulation from similar business makes the research extremely
relevant for retail microbusinesses. The extensions and modifications made to the UTAUT are
consistent with past suggestions and modifications.
Since a single case study has been used, higher value has been put forward for relevance rather than
rigour. The theory development is based on a single case. This exploratory development was
necessary due to absence of theory in adoption of social media by microbusiness. The limitation of
this study shall be overcome by conducting further action research investigation using the developed
theory. No negative evidence was collected to falsify the theory leading to major flaw in the theory
development process. However, the limited scope of the investigation did not permit looking for
negative evidences. The case of bias against action research is substantially strong. In this case, the
author was actively involved with the practitioner over elongated period leading to going native. The
author managed the going native aspect by recognising the dual cycle of action (a) the research cycle
and (b) the problem solving cycle. In this manner, distinctly separating the two cycle’s bias was
managed to bring about a non-partial collection and analysis of data.
Implications for practice
The two main implication are (a) Patience is a virtue and social media experience cannot be done
overnight. (b) The microbusiness owner is the best judge about his business. Communication with the
customer cannot be outsourced. Practise is required to gain efficacy with social media. Regular and
continuous systematic use will lead to benefits. It is efficient to learn from established facebook users
by observing their content. Innovative trial-and-error use of the facebook business page is necessary
to understand the best possible engaging experience for the customer.
Conclusions
The paper makes out a case for extending the UTAUT to accommodate the adoption of social media
process by microbusinesses. Individual characteristics of innovativeness on use of the facebook
business page seemed to be the most dominant role for adopting social media. Codification effort and
time required for using the tool can significantly undermine use of the tool. The learning curve for
technologically less informed business owners may be higher. A goal-oriented model is simpler for
the practitioner community to understand and follow rather than behavioural intention. Further
interpretive investigation is required for developing solid hypothesis for a positivist-oriented
investigation.

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