Smartphones’ Utilization in Managerial Practices of Smes

SMARTPHONES’ UTILIZATION IN

MANAGERIAL PRACTICES OF SMEs

IN SARAJEVO CANTON AREA

Supervisor: Assoc. Prof. Dr. Erkan Ilgun

Student: Hanefija Selek

ABSTRACT

• Main objective of this study is to identify factors that influence adoption ofsmartphones by managers in small and medium sized enterprises (SMEs) ofSarajevo Canton area. On the basis of literature review, six independent and onedependent variable have been identified, and specific measuring items weredeveloped accordingly. Structured survey was prepared on the basis of mentionedmeasuring items to measure related variables, and it was used as main instrument inthis study. Survey has been sent in online form to managers working in SMEs ofSarajevo Canton area via e-mail and social networks. Out of 200 managers whoreceived the survey, 148 respondents completed it which gives response rate of74%. Responses were analyzed using descriptive statistics in excel, but mainmethodology was regression analysis using SPSS.

ABSTRACT (cont.)

• The findings indicated that there is a significant positive relationship between PerceivedUsefulness (PU), Product Price (PP) and Social Influence (SI) on Purchase Behavior (PB).On the other hand, there is no relationship between Perceived Ease of Use (PEoU), BrandName (BN), Dependency (D) and PB. The most significant positive relationship wasbetween SI and PB, but still there is significant effect of PU and PP. Limitation of this studyis not very high Adjusted R Square since model used in this study explains 52,3 % ofvariance in PB considering mentioned independent variables. Also, research is completed inone canton of the country and limited to managers of SMEs. It is suggested for futureresearch to test more different independent variables and do the research in all cantons ofFederation of Bosnia and Herzegovina, entity Republic Srpska and District Brčko. Also, it issuggested to focus on other target groups beside managers.

• Key words: Smartphone, Adoption, Utilization, Managers.

INTRODUCTION

Purpose

• Lack of domestic literature regarding smartphones utilization by citizens of

Bosnia and Herzegovina;

• Main purpose of this work is to find out what is it that influences managers

of SMEs in Sarajevo Canton Area to buy a smartphone, and how strong

those influencing factors are.

INTRODUCTION

Importance and contribution

• It is impossible to imagine people‘s daily lives without smartphones;

• Smart version of mobile phones has positive trend line in all its aspects: number ofsmartphones' producers, number of smartphones' consumers, and number of optionsprovided, functionality, capabilities etc.;

• All serious literature written is mainly related to U.S., China and other developed countries, while there is no research conducted in transition countries such are Bosnia & Herzegovina.

• There is no literature that exactly explains the level of their managerial smartphones adoption, especially when it comes to region of Bosnia and Herzegovina.

INTRODUCTION

The Objectives of Study

• The primary objective of this study is to identify the factors that influence managersof SMEs in Sarajevo Canton Area while buying a smartphone. In other words, mainobjective is to test relationship between Purchase Behavior as dependent variable,and six independent variables as follows: Perceived Usefulness (PU), Perceived Easeof Use (PEoU), Brand Name (BN), Product Price (PP), Social Influence (SI) andDependency (D).

• The secondary objective of this study is to descriptively present difference amongopinions regarding smartphones of managers of different age groups, genders andeducation levels.

INTRODUCTION

The Used Methodology

• Based on seven variables, measuring items and survey questions were

created. Target population was comprised of managers working in SMEs of

Sarajevo Canton Area. Response rate of 74% was good enough to generalize

data in the level of Sarajevo Canton area.

• Once the results were collected, regression analysis via SPSS has been used

to determine the relationships among variables. In the same time, for

purpose of conducting descriptive analysis, Excel has been used.

THEORETIC BACKGROUND AND

LITERATURE REVIEW

Defining smartphones

• Smartphones are distinguished from earlier mobile phone generations by their

sophisticated features that support Internet access, video/audio streaming, text

messaging, e-mail, Global Positioning System (GPS) navigation, Personal Information

Management (PIM), and business productivity applications (Chang et al., 2009).


LITERATURE REVIEW


• According to Dong-Hee Shin (2012), a smart device is an electronic device that is

cordless, mobile, always connected and is capable of voice and video communication,

internet browsing, geo-location and that can operate to some extent autonomously.

Smartphones are now more than just a mobile telephone and they are indeed not only

a cultural artifact, but an extension of their users’ social status. He mentioned iPhone

as example (Dong-Hee Shin, 2012).


LITERATURE REVIEW


• Norazah Mohd Suki (2013) defined smartphones as a combination of personal device

assistants and mobile phones that use advanced operating systems and permit users to

install new applications, be constantly connected to the internet, and provide

multifarious functionalities of both. In addition, he stated that smartphones are

increasingly entwined in people’s everyday activities as it makes their lives easier access

the internet 24 hours a day, seven days a week, and 365 days a year.


LITERATURE REVIEW


LITERATURE REVIEW

• Wei and Lo (2006) were writing about virtual mobility

that will provide faster and more personalized social

interaction.

• As the market has been developing, number of

smartphones’ producers was increasing over time.

Accordingly, there are many different smartphone

producers nowadays such are: Samsung, Apple,

Microsoft, Nokia, Sony, LG, HTC, Motorola,

Huawei, Lenovo, Xiaomi, Acer, Asus, Oppo,

BlackBerry, Alcatel, ZTE etc. (Gsmarena, 2015).


LITERATURE REVIEW• When speaking about adoption and utilization of any kind of technology, it is impossible to not mention Davis

(1989) and his Technology Acceptance Model (TAM). The whole TAM is about relationship between Perceived

Usefulness and Perceived Ease of Use in one side, and User Acceptance of Information Technology on another

side. Two variables from this model were tested in this study in terms of their influence of Purchase Behavior.


LITERATURE REVIEW• Norazah Mohd Suki (2013) examined structural relationships of product features, brand name, product price and

social influence with demand for Smartphones among Malaysian students. Results indicated that brand name and social influence have an effect on the increasing demand for Smartphones among Malaysian students. Brand name was more influential factor compared to social influence.

• Ding Hooi Ting, Suet Fong Lim, Tanusina Siuly Patanmacia, Ca Gie Low and Gay Chuan Ker (2011) researched dependancy on smartphone and the impact on purchase behavior. More accurately said, he investigated the effect of convenience, social needs and social influences on university students' dependancy towards smartphones and the impact on purchase behavior. His results indicated that university students’ dependency on smartphones is influenced by convenience, social needs and social influences and dependency is positively related with future purchase behaviour.

• In the end of literature review section, the one can conclude that smartphones have both, pros and cons for the society, but still they are important and inseparable part of our daily both, private and business lifes. On the basis of several important influencing factors mentioned in this section, as a main result of this literature review, model presented in Figure 1 has been prepared.

MODEL DEVELOPMENT

HYPOTHESIS

• H1: Smartphones’ Perceived usefulness positively influence Purchase behavior of Managers in SMEs of Sarajevo

Canton area.

• H2: Smartphones’ Perceived Ease of Use positively influence Purchase behavior of Managers in SMEs of Sarajevo

Canton area.

• H3: Smartphones’ Brand Name positively influence Purchase behavior of Managers in SMEs of Sarajevo Canton

area.

• H4: Smartphones’ Product Price positively influence Purchase behavior of Managers in SMEs of Sarajevo Canton

area.

• H5: Social influence positively affects Purchase behavior of Managers in SMEs of Sarajevo Canton area

• H6: Dependancy on Smartphones positively affects Purchase behavior of Managers in SMEs of Sarajevo Canton area.

HYPOTHESIS

RESEARCH METHODOLOGY

• Structured survey prepared for this research has been prepared on the basis of seven variables. It is divided into

eight sections:

1. Demographics,

2. Perceived Usefulness,

3. Perceived Ease of Use,

4. Brand Name,

5. Product Price,

6. Social Influence,

7. Dependency and

8. Purchase Behavior.


• These mentioned eight sections could be grouped into three broader parts. First part

of survey includes demographical questions that are prepared with aim to learn more

about characteristics of respondents. This enables comparative analysis of the results

per different groups of respondents (for ex. respondents of males vs. females).

• Second part of the survey are questions measuring six independent variables:

Demographics, Perceived Usefulness, Perceived Ease of Use, Brand Name, Product

Price, Social Influence and Dependency.

• Third part of the survey are questions measuring dependent variable, Purchase

Behavior.


• Part 1 - Demographics


• Part 2 & 3 - Measuring Variables

SURVEY QUESTIONS

NO CONSTRUCTMEASURING

ITEMNO SURVEY QUESTION

ADAPTED

FROM

1Perceived

Usefulness (PU)

Perceived

Usefulness1 I perceive smartphone's services as useful Davis (1989);

Dong-Hee

Shin (2012)Functionality 2I perceive smartphone's services as practical and

functional

2Perceived Ease of

Use (PEoU)

Eease and

clarity3

In my opinion, smartphones provide feeling that

interface design and information delivery are both, clear

and easy to understandDavis (1989);

Dong-Hee

Shin (2012)Ease of

handling4

I perceive smartphones as devices easy to handle when I

encounter problems

3 Brand name

Recognition 5I prefer to buy an internationally well known &

recognized smartphoneNorazah

Mohd Suki

(2013)

Security &

Trust6

I prefer to buy a brand of smartphone which is secure

and trustworthy

Name 7When buying a smartphone, brand name is a decisive

factor for me

SURVEY QUESTIONSNO CONSTRUCT

MEASURING

ITEMNO SURVEY QUESTION ADAPTED FROM

4 Product price

High price 8 I am willing to buy a smartphone regardless of its high price

Norazah Mohd

Suki (2013)

Discounts 9 I will only buy a smartphone during a discount period

Expense 10 I think that using smartphone is luxuary for me

Price main driver 11 Price is my main consideration when deciding whether to buy a smartphone

5 Social influence

Using

smartphones by

family and

friends

12 Almost all of my friends and family members are smartphone users

Norazah Mohd

Suki (2013)Family and

friends'

perception

13My friends and family members are of opinion that we should all use

smartphones

Surrounding 14 People in my surrounding have encouraged me to use smartphone

Friends'

preferences15

It is important that my friends like and favor the brand of smartphone I’m

usingDing Hooi Ting

Suet Fong Lim

Tanusina Siuly

Patanmacia Ca Gie

Low Gay Chuan

Ker (2011)

Family and

friends' pressure16 The pressure from friends and family is the reason for me to buy smartphone

Supporting

socialization17 I would buy a smartphone if it enables me fit in with my social group better

SURVEY QUESTIONSNO CONSTRUCT MEASURING ITEM NO SURVEY QUESTION ADAPTED FROM

6 Dependancy

Usage intensity 18 Usage of smartphone is high in my daily life, Ding Hooi Ting

Suet Fong Lim

Tanusina Siuly

Patanmacia Ca

Gie Low Gay

Chuan Ker

(2011)

Feeling of

insecurity19 I would feel insecure if my smartphone is not with me

Using for job 20 I always use smartphone when dealing with my job

Reliance 21 I cannot do anything regarding my job without the smartphone

Total dependance 22 I’m totally depending on my smartphone

7Purchase

behavior

Satisfaction 23 In general, I’m satisfied with my smartphone experience Ding Hooi Ting

Suet Fong Lim

Tanusina Siuly

Patanmacia Ca

Gie Low Gay

Chuan Ker

(2011)

Experience 24Overall, my positive experience outweighs my negative experience with

smartphone

Future usage 25 I intend to continue and increase usage of smartphone in the future

Improved

purchase26

I intend to have a better purchase of smartphone in the future from my

experience

Intention to use 27I intend to continue using smartphone even though if there is new mobile

phone in the market

Norazah Mohd

Suki (2013)

E-commerce 28 I intend to use smartphone purpose of e-commerce

Details 29 I will learn more details about smartphones

Recommending 30 I intend to recommend and suggest others to use smartphone

ONLINE SURVEY

METHODOLOGY

Methodology

• As this study represents quantitative research, main methodology after

collecting data through survey as an instrument will be quantitative statistical

analysis using both descriptive data in Excel and regression analysis in SPSS.

• Response rate was good, and survey results were collected in quite short

period of time. This means that response rate of 74 % was satisfactory

enough to generalize data in the level of Sarajevo Canton area.

METHODOLOGY

Sample

• Target sample for this study was consisted of managers employed in SMEs

of Sarajevo Canton area. Out of two hundreds emailed potential

respondents, 148 of them replied to survey which leads to response rate of

74%.

METHODOLOGY

Reliability and Validity

• The main evidence that survey questions used for purpose

of this research were valid is fact that no one among

respondents complained about the survey questions, and

that all survey questions are based on the previously done

research.

• When it comes to reliability of the survey, reliability test

has been performed after collecting the data. Results of

reliability test indicated that survey is completely reliable

instrument for this study due to fact that Cronbach’s

Alpha value was 0,834 which is higher than 0, 7.

DESCRIPTIVE RESULTS

RESULTS OF REGRESSION

CONCLUSION

• The primary objective of this study was to identify the factors that influence managers of SMEs in Sarajevo Canton

Area while buying a smartphone. In other words, main objective is to test relationship between Purchase Behavior

as dependent variable, and six independent variables as follows: Perceived Usefulness (PU), Perceived Ease of Use

(PEoU), Brand Name (BN), Product Price (PP), Social Influence (SI) and Dependency (D).

• The secondary objective of this study is to descriptively present difference among opinions regarding smartphones

of managers of different age groups, genders and education levels.

• Based on seven variables, measuring items and survey questions were created. Target population was comprised of

managers working in SMEs of Sarajevo Canton Area. Response rate of 74% was good enough to generalize data in

the level of Sarajevo Canton area.

• Once the results were collected, reliability test of survey as an instrument has been completed. Chonrbach Alpha

value was greated than 0.7 which indicated that the reliability of survey is satisfactory.

CONCLUSION (CONT.)

• Results indicated that PU, PP and SI are having influence on PB while PEoU, BN and D do not affect

PB. Results of descriptive statistics indicated that there are differences in opinions of males and

females, opinions of young vs. old respondents and highly educated vs. those respondents with lower

education level.

• Main limitation of this research is fact that it was focused on one canton, and it is suggested to

conduct the same research in other cantons, entity Republic Srpska and District Brčko. Also,

conducting comparative analysis of results per cantons, entities or other regions of B&H could be

good proposal for future research. Also, it is suggested to add more factors that could influence

purchase behavior, and to focus on other target groups, not only managers.

THANK YOU FOR YOUR ATTENTION

• Assoc. Prof. Dr. Erkan Ilgun

• Hanefija Selek

Smartphones’ Utilization in Managerial Practices of Smes

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