A Conceptual Framework for Online Stock Trading Service Adoption

A Conceptual Framework for Online Stock Trading Service Adoption

Alireza Abroud (Multimedia University, Jalan Multimedia, Malaysia & Ministry of Science, Research and Technology, Islamic Republic of Iran), Yap Voon Choong (Multimedia University, Jalan Multimedia, Malaysia) and Saravanan Muthaiyah (Multimedia University, Jalan Multimedia, Malaysia)
DOI: 10.4018/978-1-4666-6268-1.ch024
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Abstract

Globalization and recent advancement in the deployment of Internet and related technologies, have significantly transformed all sectors of the modern economy. For instance, electronic service has enabled the application of Internet platform in stock trading, thereby empowering individuals across diverse location to engage in trading activities. As established by extant theories on technology acceptance, individuals are expected to exhibit different attitude and behaviour towards new technology. This study aims to develop a conceptual model, which can explain the antecedents of individual investors' intention to adopt online stock trading service. Specifically, this study identifies three new constructs (trust perception, investors' knowledge and economic value) by integrating theory of planed behavior (TPB) and technology acceptance model (TAM), with perspective from transaction cost theory (TCT).
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Literature Review

Extensive research works on stock market have been done in field of financial science and information systems. Scholars have identified the factors that influence the individual’s decision to adopt e-commerce platform for transaction. To this online trading service has been described as more of an information system phenomenon (Gefen et al., 2003a; Kolekofski et al., 2003). Consequently recent studies on online financial trading have employed technology adoption model as their theoretical framework. As Pavlou (2003) noted information technology adoption and usage model has found wide application in the field of electronic finance, which is an integration of technology adoption with finance concepts. Specifically, technology adoption model has been employed in studying the adoption of online financial trading. A review of relevant literatures to the study’s objectives will be presented on technology acceptance theories and models.

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