The Era of the Virtual Office by Adeel Qurashi

Executive Summary

Introduction

The Era of the

Virtual Office By Adeel Qurashi MSc Dissertation l Aberdeen Business School

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Executive Summary

Introduction

Executive Summary In the past decade, smartphones have experienced a tremendous growth. Smartphones are gaining their momentum with an expected growth rate of 30% every year up until 2012. As a result smartphones are changing the way people communicate and conduct businesses. The concept of the virtual office is one the rise, which will dramatically change the perception of work. Work will no longer be someplace you go, but something you do. The research examined the effects of these developments on the generations that are part of the contemporary workforce, the Baby Boomers, Gen X and Gen Y. 425 individuals participated in an online questionnaire which employed the UTAUT construct as a foundation. Research revealed that although individuals from the three generations significantly differ from each other according to the â&#x20AC;&#x2DC;generational theoryâ&#x20AC;&#x2122;, owners of smartphone from each generation did not. In general, individuals from the three generations had similar usage of smartphones, attitudes towards work and social aspects. The research concludes that there is much scope for research in the field of smartphones and offers recommendations for further research and practical application. MSc Dissertation l Aberdeen Business School

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Acknowledgements

Introduction

Acknowledgements This dissertation could not have been completed without the help of many others. The author would like to express his deepest appreciation to all those that have supported in the completion of this dissertation. Dr. Neil G. Connon

Dissertation Supervisor

Over the past months, Dr. Connon has extensively supported the author in all stages of the dissertation. His open and friendly approach enabled the author to approach the dissertation in comfort. Dr. Connonâ&#x20AC;&#x2122;s experience and knowledge was very inspiring and it was great to work with him. The author cannot express the amount of appreciation he has for the support that was provided by Dr. Connon.

Ms. Sophie Anderson

RGU Alumni Office

Ms Andersonâ&#x20AC;&#x2122;s assistance in disseminating the primary research was extremely helpful. The author would like to thank Ms. Anderson for providing excellent and timely support.

Participants The contribution of the participants of the primary research was invaluable to the research. The author is very thankful to all people that contributed. Special thanks to people that were so kind to invite their friends and family to partake in the research.

Friends & Family The author would not have been able to be at this stage without his dearest friends. Especially Stephany Elfezy, Gregor Flipse and Betty Koomen, thank you for your unconditional support over the past six years. Finally yet importantly, my family for their on-going support, specially my Mom and Dad, for continuously supporting me and my endeavours; this is for you.

MSc Dissertation l Aberdeen Business School

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List of Contents

Introduction

List of Contents EXECUTIVE SUMMARY ................................................................................... II ACKNOWLEDGEMENTS ................................................................................ III LIST OF CONTENTS ...................................................................................... IV LIST OF FIGURES ........................................................................................ VIII LIST OF TABLES ............................................................................................ XI LIST OF APPENDICES ................................................................................... XII GLOSSARY ................................................................................................. XIII

INTRODUCTION ................................................................................... 1 I.

PROLOGUE ............................................................................................ 2

II.

THE RESEARCH ...................................................................................... 4 1.1 RESEARCH AIM ........................................................................................................... 4 1.2 RESEARCH OBJECTIVES................................................................................................ 4

III. OVERVIEW............................................................................................. 5 1.3 1.4 1.5 1.6 1.7 1.8

SECTION 1 – INTRODUCTION..........................................................................................5 SECTION 2 – LITERATURE REVIEW ..................................................................................5 SECTION 3 - METHODOLOGY .........................................................................................5 SECTION 4 – FINDINGS................................................................................................. 6 SECTION 5 – ANALYSIS & DISCUSSION ........................................................................... 6 SECTION 6 – CONCLUSION & RECOMMENDATIONS ......................................................... 6

RATIONALE .......................................................................................... 7 IV. RATIONALE FOR THE STUDY ................................................................. 8 V.

SIGNIFICANCE OF THE STUDY ................................................................ 9

VI. LIMITATIONS OF THE STUDY ................................................................10

LITERATURE REVIEW ......................................................................... 11 1

INTRODUCTION .................................................................................... 12

THE RISE OF SMARTPHONES ................................................................ 13 2.1 2.2 2.3 2.4 2.5

DEFINING SMARTPHONES ........................................................................................... 14 ORIGIN ..................................................................................................................... 18 DEVELOPMENT .......................................................................................................... 21 CONSUMER VS. BUSINESS ...........................................................................................24 CHAPTER SUMMARY.................................................................................................. 26

THE VIRTUAL OFFICE ............................................................................ 27 3.1

UNDERSTANDING THE VIRTUAL OFFICE ........................................................................28

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List of Contents

Introduction

3.2 VIRTUAL ORGANISATIONS........................................................................................... 31 3.3 KEY CONCEPTS .......................................................................................................... 33 3.3.1 3.3.2 3.3.3 3.3.4

Telecommuting ..........................................................................................................33 Tethering ................................................................................................................... 35 Hot desking ................................................................................................................ 37 Fully mobile ............................................................................................................... 39

3.4 KNOWLEDGE WORKERS ..............................................................................................40 3.4.1 3.4.2

Defining Knowledge Workers .................................................................................... 41 Managing Gold-Collar Employees .............................................................................. 43

3.5 CHAPTER SUMMARY.................................................................................................. 46

SMARTPHONES IN THE WORKPLACE ....................................................47 4.1 WORKPLACE DEVELOPMENT ...................................................................................... 48 4.2 OPPORTUNITIES AND THREATS ....................................................................................50 4.2.1 4.2.2

Opportunities ............................................................................................................ 50 Threats ...................................................................................................................... 51

4.3 CHAPTER SUMMARY...................................................................................................52

MULTIGENERATIONAL WORKFORCE .................................................... 53 5.1 GENERATIONS ...........................................................................................................54 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5

Veterans .................................................................................................................... 55 Baby Boomers ........................................................................................................... 55 Generation X ............................................................................................................. 56 Generation Y ............................................................................................................. 56 Generation Z ..............................................................................................................57

5.2 KEY DIFFERENCES ......................................................................................................58 5.3 TECHNOLOGY ACCEPTANCE ....................................................................................... 60 5.3.1

Smartphones ............................................................................................................. 60

5.4 CHAPTER SUMMARY................................................................................................... 63

TECHNOLOGY ACCEPTANCE THEORIES ............................................... 64 6.1 6.2 6.3 6.4

THEORY OF REASONED ACTION ...................................................................................65 TECHNOLOGY ACCEPTANCE MODEL ........................................................................... 66 UNIFIED THEORY OF ACCEPTANCE & USE OF TECHNOLOGY ............................................ 67 CHAPTER SUMMARY................................................................................................... 70

SUMMARY OF REVIEWED LITERATURE ................................................. 71

METHODOLOGY ................................................................................ 72 8

RESEARCH OVERVIEW .......................................................................... 73 8.1 RESEARCH TITLE ........................................................................................................ 74 8.2 RESEARCH AIM .......................................................................................................... 74 8.3 RESEARCH OBJECTIVES............................................................................................... 75

THE RESEARCH .................................................................................... 76 9.1 9.2 9.3 9.4

RESEARCH PHILOSOPHY ............................................................................................. 76 RESEARCH APPROACH ................................................................................................ 78 RESEARCH DESIGN ..................................................................................................... 79 RESEARCH STRATEGY .................................................................................................82

10 SECONDARY RESEARCH ...................................................................... 83 10.1 ADVANTAGE OF SECONDARY RESEARCH ....................................................................... 83 MSc Dissertation l Aberdeen Business School

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List of Contents

Introduction

10.2 DISADVANTAGES OF SECONDARY DATA ....................................................................... 84 10.3 APPLICATION OF SECONDARY RESEARCH..................................................................... 84

PRIMARY RESEARCH ........................................................................... 86 11.1 11.2 11.3 11.4

ADVANTAGE OF PRIMARY DATA ................................................................................... 87 DISADVANTAGES OF PRIMARY DATA............................................................................. 87 QUALITATIVE VS. QUANTITATIVE .................................................................................88 RATIONALE FOR SELECTED METHOD ........................................................................... 90

SURVEY ............................................................................................... 92 12.1 ONLINE QUESTIONNAIRE ............................................................................................ 93 12.1.1 12.1.2 12.1.3

Advantages of Online Questionnaire ......................................................................... 93 Disadvantages of Online Questionnaire ..................................................................... 93 Service Provider......................................................................................................... 94

12.2 DESIGN.................................................................................................................... 96 12.2.1 12.2.2 12.2.3 12.2.4 12.2.5

Demographics ........................................................................................................... 98 Academic vs. Professional ......................................................................................... 98 Smartphones ............................................................................................................. 98 UTAUT Questions ...................................................................................................... 99 Feedback & Closure ................................................................................................... 99

12.3 PILOT ..................................................................................................................... 100 12.4 SAMPLING & DISTRIBUTION ...................................................................................... 101 12.4.1 12.4.2 12.4.3

Online Social Network ..............................................................................................101 RGU Alumni ............................................................................................................. 104 Response rate .......................................................................................................... 104

12.5 DATA ANALYSIS ...................................................................................................... 108

ETHICAL CONSIDERATIONS ................................................................ 109 13.1 13.2 13.3 13.4

VOLUNTARY PARTICIPATION...................................................................................... 110 INFORMED CONSENT ................................................................................................ 110 ANONYMITY & CONFIDENTIALITY .............................................................................. 111 AUTHENTICITY OF DATA ........................................................................................... 112

FINDINGS ......................................................................................... 113 14 OVERVIEW.......................................................................................... 114 15

DEMOGRAPHICS ................................................................................. 115 15.1 15.2 15.3 15.4 15.5

GENDER ................................................................................................................. 115 AGE ....................................................................................................................... 115 REGION OF ORIGIN ................................................................................................... 116 EDUCATION............................................................................................................. 117 POSITION ................................................................................................................ 117

16 SEGMENTATION ................................................................................. 118 16.1 GENERATION Z ........................................................................................................ 118 16.2 STUDENTS .............................................................................................................. 119 16.3 PROFESSIONALS ...................................................................................................... 120

SMARTPHONES .................................................................................. 123

18 UTAUT ................................................................................................ 125 18.1 USE BEHAVIOUR ...................................................................................................... 125

MSc Dissertation l Aberdeen Business School

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List of Contents 18.2 18.3 18.4 18.5 18.6 18.7 18.8

Introduction

SOCIAL INFLUENCE .................................................................................................. 128 FACILITATING CONDITIONS ....................................................................................... 130 EFFORT EXPECTANCY ............................................................................................... 132 EXPERIENCE ............................................................................................................ 133 PERFORMANCE EXPECTANCY .................................................................................... 135 VOLUNTARINESS OF USE ........................................................................................... 137 BEHAVIOURAL INTENTION ......................................................................................... 138

ANALYSIS & DISCUSSION ................................................................ 140 19 OVERVIEW.......................................................................................... 141 20 SMARTPHONES .................................................................................. 142 20.1 ADOPTION OF SMARTPHONES ................................................................................... 142 20.2 EXPERIENCE WITH SMARTPHONES .............................................................................. 146 20.3 USAGE OF SMARTPHONES ........................................................................................ 148

SOCIAL ............................................................................................... 152 21.1 SMARTPHONES IN THE SOCIETY ................................................................................. 152 21.2 ACCESS TO RESOURCES ............................................................................................ 155 21.3 SMARTPHONES: A NEED OR A WANT ........................................................................... 159

WORKPLACE ...................................................................................... 164 22.1 ORGANISATIONAL INVOLVEMENT .............................................................................. 164 22.2 SMARTPHONE AS A WORK TOOL ................................................................................ 167 22.3 MENTALITY TOWARDS SMARTPHONES........................................................................ 169

SUMMARY .......................................................................................... 172

CONCLUSION ................................................................................... 175 24 CONCLUSION ..................................................................................... 176 25

FINAL THOUGHTS............................................................................... 179

RECOMMENDATIONS ...................................................................... 180 26 RECOMMENDATIONS ......................................................................... 181 26.1 FURTHER RESEARCH................................................................................................. 181 26.1.1 26.1.2

Cultural Differences ..................................................................................................181 Gender Differences ...................................................................................................181

26.2 PRACTICAL .............................................................................................................. 182 26.2.1 26.2.2 26.2.3

Universities should lead ........................................................................................... 182 Policies and Practises ................................................................................................183 Security and Operations ...........................................................................................183

RESOURCES ..................................................................................... 184 REFERENCES.................................................................................................................... 185 BIBLIOGRAPHY ................................................................................................................. 213

APPENDIX......................................................................................... 218 MSc Dissertation l Aberdeen Business School

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List of Figures

Introduction

List of Figures Figure 1 – Overview: Literature Review................................................................................ 12 Figure 2 – Smartphone Operating Systems ......................................................................... 16 Figure 3 – Smartphone Specifications .................................................................................. 17 Figure 4 – Smartphones sales: Historical Figures ................................................................. 21 Figure 5 – Major players in smartphone business .................................................................22 Figure 6 – Levels of virtualness ............................................................................................28 Figure 7 – Virtual Organisation variables.............................................................................. 31 Figure 8 – Virtual Organisation Framework ......................................................................... 32 Figure 9 – Virtual Office: Key Concepts................................................................................ 33 Figure 10 – Mobility / Virtualness Grid.................................................................................. 39 Figure 11 – Evolution of Workers .........................................................................................40 Figure 12 – Accenture’s Mobile solution.............................................................................. 48 Figure 13 – Generational Differences ...................................................................................59 Figure 14 – Smartphone adoption among generations ........................................................ 61 Figure 15 – Baby boomers attitude towards PDA’s and mobiles ......................................... 62 Figure 16 – Theory of Reasoned Action................................................................................65 Figure 17 – Technology Acceptance Model ......................................................................... 66 Figure 18 –Unified Theory of Acceptance & Use of Technology .......................................... 68 Figure 19 – Research philosophies ....................................................................................... 76 Figure 20 – Research Orientation with Epistemological philosophy..................................... 77 Figure 21 – Research Approach ............................................................................................ 78 Figure 24 – Types of Research ............................................................................................. 79 Figure 25 – Applied research approaches ............................................................................. 81 Figure 26 – Sources of primary data ................................................................................... 86 Figure 27 – Qualitative vs. Quantitative methods ............................................................... 89 Figure 28 – Proposed Primary Research method ................................................................ 90 Figure 29 – Types of questionnaires.................................................................................... 92 Figure 30 – Questionnaire service providers.........................................................................95 Figure 31 – Structure of the questionnaire ........................................................................... 97 Figure 32 – Facebook event ............................................................................................... 102 Figure 33 – Link-backs Social Networks ............................................................................. 103 Figure 34 – Extract from questionnaire .............................................................................. 105

MSc Dissertation l Aberdeen Business School

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List of Figures

Introduction

Figure 35 – Facebook Event: RSVP..................................................................................... 106 Figure 34 – Gender information ......................................................................................... 115 Figure 35 – Generations ..................................................................................................... 116 Figure 36 – Region of Origin .............................................................................................. 116 Figure 37 – Education ......................................................................................................... 117 Figure 38 – Position ........................................................................................................... 117 Figure 39 – Student: Course ............................................................................................... 119 Figure 40 – Student: Preferred Industry ............................................................................. 119 Figure 41 – Professionals: Industry..................................................................................... 120 Figure 42 – Professionals: position..................................................................................... 121 Figure 43 – Professionals: Income ...................................................................................... 122 Figure 44 – Professionals: Size organisation ...................................................................... 122 Figure 45 – Possession of a Smartphone ............................................................................ 123 Figure 46 – Intention of buying a smartphone ................................................................... 123 Figure 47 – Motivation to purchase a smartphone ............................................................. 124 Figure 48 – Reason for not intending to purchase a smartphone ....................................... 124 Figure 49 – User of smartphones (in years) ........................................................................ 125 Figure 50 – Activities on a smartphone .............................................................................. 126 Figure 51 – When smartphones are used............................................................................ 127 Figure 52 – Social influence ............................................................................................... 128 Figure 53 – Facilitating Conditions ..................................................................................... 130 Figure 54 – Effort Expectancy ............................................................................................ 132 Figure 55 – Experience ....................................................................................................... 133 Figure 56 – Performance expectancy ................................................................................. 135 Figure 57 – Voluntariness of use ......................................................................................... 137 Figure 58 – Behavioural Intention ...................................................................................... 138 Figure 59 – Owner of a Smartphone .................................................................................. 142 Figure 60 – Occupation ...................................................................................................... 143 Figure 61 – Intention to purchase a Smartphone ............................................................... 143 Figure 62 – Motive for not purchasing a smartphone ......................................................... 144 Figure 63 – Motive for purchasing a smartphone ............................................................... 145 Figure 64 – Adoption of smartphones per generation ........................................................ 146 Figure 65 – Adoption of smartphones per generation (including totals)............................. 147 Figure 66 – Activities on a smartphone .............................................................................. 148 Figure 67 – Preference of smartphone usage location ....................................................... 151 MSc Dissertation l Aberdeen Business School

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List of Figures

Introduction

Figure 68 – Trendiness of Smartphones............................................................................. 152 Figure 69 – Purchasing Hi-Tech equipment ....................................................................... 153 Figure 70 – Smartphones are a Hype.................................................................................. 154 Figure 71 – Interactivity with Social Network ..................................................................... 154 Figure 72 – Usage support from Provider ........................................................................... 155 Figure 73 – Operating cost of Smartphones ....................................................................... 156 Figure 74 – Position of Respondents .................................................................................. 156 Figure 75 – Guidance from family and friends .................................................................... 157 Figure 76 – Support from suppliers .................................................................................... 158 Figure 77 – Smartphones are essential ............................................................................... 159 Figure 78 – Intention of use ................................................................................................ 160 Figure 79 – Multitasking on Smartphones .......................................................................... 161 Figure 80 – The benefits of a smartphone .......................................................................... 162 Figure 81 – Smartphones: a burden?.................................................................................. 163 Figure 82 – Organisation provided a smartphone .............................................................. 164 Figure 83 – Organisations do not support use .................................................................... 165 Figure 84 – Organisations encourage use .......................................................................... 166 Figure 85 – Smartphone: an efficient and organised work tool .......................................... 167 Figure 86 – Cannot complete work without a smartphone ................................................ 168 Figure 87 – Data inaccessible without a smartphone ......................................................... 168 Figure 88 – Decline of workplace etiquette ........................................................................ 169 Figure 89 – Smartphone only at work ................................................................................ 170 Figure 90 – Smartphone outside of work ........................................................................... 171

MSc Dissertation l Aberdeen Business School

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List of Tables

Introduction

List of Tables Table 1 – Social Influence data ........................................................................................... 129 Table 2 – Facilitating conditions data................................................................................. 131 Table 3 – Effort Expectancy data ....................................................................................... 132 Table 4 – Experience data .................................................................................................. 134 Table 5 – Performance Expectancy data ............................................................................ 136 Table 6 – Voluntariness of use data ................................................................................... 137 Table 7 – Behavioural Intention.......................................................................................... 139 Table 8 – Major Product launches ...................................................................................... 146

MSc Dissertation l Aberdeen Business School

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List of Appendices

Introduction

List of Appendices Appendix 1- Questionnaire Preview ................................................................................... 219 Appendix 2- Students: Preferred Industry.......................................................................... 219 Appendix 3- Professionals: Industry ................................................................................... 219

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Glossary

Introduction

Glossary IS

– Information System

– Operating System

PDA

– Personal Data Assistant

PIM

– Personal Information Management

SERP

– School Ethics Review Panel

TAM

– Technology Acceptance Model

TRA

– Theory of Reasoned Action

UTAUT

– Unified Theory of Acceptance and Use of Technology

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Chapter 0 l Glossary

Introduction

The Era of the

Virtual Office

MSc Dissertation l Aberdeen Business School

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Chapter I l Prologue

Introduction

I. Prologue While in the train travelling to a business meeting, an executive grabs his smartphone to read the latest business news, which happens to have a significant impact on the presentation he is scheduled to deliver to management that afternoon. An immediate call to his colleague allows him to discuss the implications of his recently acquired knowledge to the presentation. Upon review, the executive makes the required changes on his smartphone and sends an updated version of the presentation by e-mail to colleagues in advance, accompanied by a request in which a meeting is scheduled to discuss the alterations before he disembarks the train. Upon arrival at the office, the team assembled in the meeting room is prompt to discuss the effects and present a solid case to the management team. A decade ago a story like this would have been considered a fairy-tale; a vision of the future at its best. At present, due to technological developments this is no longer a vision, but reality. The increased adoption of internet, mobile phones and other technologies has allowed the world to become a smaller place (Wiberg

MSc Dissertation l Aberdeen Business School

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Chapter I l Prologue

Introduction

and Ljungberg, 2001). This trend of increased connectivity is referred to as the global village (Preece, 1994; McLuhan, 1962). Internet has played a key role in connecting people around the globe; allowing consumers and businesses to access a wide range of resources regardless of their location. Over 1.8 billion users around the world are connected to the internet using it to communicate with each other (Internet World Statistics, 2010). One of the limitations was the fact that internet was accessible primarily from a desktop computer, forcing its users to become immobile. This limitation was reduced by the development of laptop computers, permitting computer users to become mobile. The trend of being mobile and connected has continued to prosper, leading to the development of smartphones. Smartphones play a key role in this dissertation. Research into the rise of smartphones as one of the most popular handheld devices will be conducted. The findings will be analysed in the light of how Baby Boomers, generation X and generation Y are adopting the smartphones and its effect on workplace developments.

MSc Dissertation l Aberdeen Business School

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Chapter II l The Research

Introduction

II. The Research 1.1 Research Aim The aim of this study is to identify the effects of smartphones on Baby Boomers, Generation X and Generation Y in the changing work environment. 1.2 Research Objectives  To appraise the literature addressing the rapid growth of smartphones and the underlying causes for this increased adoption.  To comprehend how the work environment has developed over time and its effect on the employees.  To develop an understanding of contemporary generations and their approach towards work and social life.  To critically analyse the adoption by Baby Boomers, Generation X and Generation Y of smartphones in general and in the workplace.  To examine and discuss whether a significant technology gap is existent among Baby Boomers, Generation X and Generation Y in the context of smartphones.  To provide realistic conclusions based on the findings and recommend areas for further research.

MSc Dissertation l Aberdeen Business School

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Chapter III l Overview

Introduction

III. Overview 1.3 Section 1 â&#x20AC;&#x201C; Introduction The first section introduces the dissertation by setting the scene and introducing the key themes and topics. It furthermore highlights the aims and objectives of the research and provides a rationale for the research. 1.4 Section 2 â&#x20AC;&#x201C; Literature Review The second section is divided among five sub headings discussing the key aspects of the research. The review is initiated by examining the development of smartphones. The review then continues by discussing how the workplace has changed over time and the move towards virtualness. Smartphones are then discussed in the context of workplace. Next heading studies the multigenerational workforce and finally the technology acceptance models are discussed in relation to smartphones. 1.5 Section 3 - Methodology The third section critically evaluates the research approach adopted by the author to conduct primary research. It discusses in detail the methods that will be applied to collect relevant data and how the MSc Dissertation l Aberdeen Business School

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Chapter III l Overview

Introduction

collected data will be analysed. The sections will furthermore highlight research limitations and ethical considerations that were taken into account by the author. 1.6 Section 4 – Findings In fourth section, the findings of the primary research are presented. They are organised in four segments to provide overview. 1.7 Section 5 – Analysis & Discussion The fifth section of the report analyses the findings in the light of the existing literature and the aims and objectives of the research. Correlations are drawn to translate raw data in useful figures. Finally the findings are discussed in a relevant context. 1.8 Section 6 – Conclusion & Recommendations The sixth section summarises the report and draws conclusion based on the primary and the secondary research. The section furthermore describes the author’s recommendations based on the findings.

MSc Dissertation l Aberdeen Business School

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Chapter III l Overview

Rationale

The Era of the

Virtual Office

MSc Dissertation l Aberdeen Business School

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Chapter IV l Rationale for the Study

Rationale

IV. Rationale for the Study Mobile devices, in particular smartphones have been growing rapidly in the past decade and will continue to grow at an expected rate of 30% each year up until 2012 (Sacco, 2007). Roughly 172 million units were sold in 2009 alone worldwide and it is expected that smartphone sales will continue to grow to form 46% of overall mobile sales by 2013 (Gartner, 2010). A smartphone in present times consists of advanced hardware and software that allows it to be used for a vast variety of purposes. The use of smartphones for social and business purposes is being embraced; however, its effects on society are yet to be determined. As the number of smartphones dramatically increases and technology development has shortened lead times, it is once again for visionaries to develop fairy tales for the future. Nevertheless, for now it is more important to understand how smartphones are affecting the world today.

MSc Dissertation l Aberdeen Business School

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Chapter V l Significance of the Study

Rationale

V. Significance of the Study Research will examine the effects of smartphones on Baby Boomers, Generation X and Generation Y. Currently there is limited research available on how smartphones have been adopted by these three generations. Smartphones are having a momentum in business and social life, therefore examining how these devices are affecting the three key generations in the workforce can uncover their positive and negative effects. Upon completion, the research will contribute to the understanding of smartphone adoption among the three generations, it will also discuss various aspects of smartphone usage and its influences on business and society. A wide range of information will be introduced and developed that may be useful to academicians interested in the field and professionals that may wish to understand how smartphones are affecting businesses.

MSc Dissertation l Aberdeen Business School

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Chapter VI l Limitations of the Study

Rationale

VI. Limitations of the Study In order to focus the scope of the research, some limitations had to be drawn by the author, other limitations derived naturally. A limitation of the study concerns the extendibility of the findings. The majority of sources utilised for secondary research were written in western countries, additionally most of the individuals that took part in the primary research were from European background. A similar study in a non-western setting may not produce similar results. In addition, a wide range of published and unpublished research was encountered

discussing

aspects

smartphones

and

virtual

organisations. In order to limit the scope of the research, some areas were not discussed or elaborated extensively within the research, including security and operational hazards and technical issues. Finally, primary research was conducted using online questionnaires, using a combination of convenience sampling and simple random sampling. Although this method allows the convenient collection of data to understand trends and explore phenomena, it can exclude a large proportion of the population, which may have reduced the extendibility of the results.

MSc Dissertation l Aberdeen Business School

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Chapter VI l Limitations of the Study

Literature Review

The Era of the

Virtual Office

MSc Dissertation l Aberdeen Business School

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Chapter 1 l Introduction

Literature Review

1 Introduction Literature review is an essential part of the dissertation. It is the process of gathering and evaluating data to provide evidence to fulfil certain aims (Hart, 1998; Machi and McEvoy, 2008). A wide range of sources were consulted in order to write this section to ensure that the dissertation has a well-established foundation. The section will discuss the findings derived from extensive secondary research. Each of the five chapters within this section correspond to key areas within this research [Figure 1]. Defining Smartphones

The Rise of smartphones

Development in Smartphones Consumer Vs Business

Literature Review

Virtual Organisation

The Virtual Office

Key Concepts Knowledge Workers Workplace Development

Smartphones in the Workplace

Case Studies Opportunities and Treats Generations

Multigenerational Workforce

Technology Acceptance Theories

Key Differences Technology Acceptance Theory of Reasoned Action Technology Acceptance Model Unified Theory

Figure developed by author

Figure 1 â&#x20AC;&#x201C; Overview: Literature Review

MSc Dissertation l Aberdeen Business School

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Chapter 2 l The Rise of Smartphones

Literature Review

2 The Rise of Smartphones The value of the global smartphone market is expected to be worth $150 billion by 2014; up from $39 billion in 2007 (MarketsandMarkets, 2010; Telecom Redux, 2008). This year smartphone sales are expected to grow by 36%; accounting for 27% of the total number of handset sales and generating 64% of the mobile phone markets (Sandstrom, 2009). These figures portray a highly lucrative segment within the mobile industry. As a result, it is not surprising that the segment is becoming highly competitive, offering consumers and businesses more value for money, variety in products and innovative technology (Grant, 2010; Maisto, 2009). This chapter will discuss what elements a particular hardware requires to be identified as a smartphone. The chapter will furthermore discuss the origin of smartphones and what developments took places for smartphones to become as popular as they are today. Finally, the chapter will analyse the use of smartphones in present times.

MSc Dissertation l Aberdeen Business School

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Chapter 2 l The Rise of Smartphones

Literature Review

2.1 Defining Smartphones The definition of smartphones has been changing since the word was first used. In 1958, when the Russian scientist Leonid Kupriyanovich first developed a pocket version of a mobile phone, all phones were considered ‘smart’ phones (The Independent, 2009; Vochin, 2009). This is related to the perception of what is considered to be ‘smart’. Moore’s law describes how technology doubles every two year, which in the case of smartphones would indicate that two years after development a smartphone may not be considered ‘smart’ (Brock, 2006). In order to establish a definition of smartphones for the purpose of this research, the author will use recent publications to draw up a definition. Soto (2010) describes a smartphone as a mobile phone offering advanced capabilities, similar to PC’s. Rittinghouse and Ransome (2009) provide a similar definition, however categorise between two types, stating that a smartphone could be identified as a phone that runs a complete operating system or a phone with advanced features; including e-mail, internet and calendar. Jaylon (2010) also states smartphones are ought to perform many activities; like local data transfer between computers and phones, remote data transfer, PIM, LAN-connectivity, ability to install applications, other voice and data

MSc Dissertation l Aberdeen Business School

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Chapter 2 l The Rise of Smartphones

Literature Review

functions and all the features mentioned earlier. Investments et al (2010) state that the definition of smartphones has changed over time, but it generally refers to phones with more advanced features and higher price tags. Jaylon (2010) furthermore notes that many of the new mobile phones offer PDA like functionalities; however are not considered smartphones; which makes it difficult to draw up a single accepted definition of smartphones. The most important software on a smartphone is its operating system [OS] (Coustan and Strickland, 2010). The operating system enables smartphones to perform the activities that are expected of them, hence allow restrictions to be created to separate smartphones from mobile phones. Contemporary smartphone should use one of the OS described in Figure 2 in order to qualify as a smartphone (Buchanan, 2008; Dignan, 2008; German and Cha, 2010; McCracken, 2008)

MSc Dissertation l Aberdeen Business School

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Chapter 2 l The Rise of Smartphones

Literature Review

Operating system

Developed by

Windows Mobile

Microsoft

Blackberry OS

Research in Motion

MeeGo

Nokia and Intel

Android

Google & partners

iOS

Apple

WebOS

Palm

Symbian

Nokia Figure developed by author utilising Coustan and Strickland, 2010; Dignan, 2008; Siegler, 2010; Yarow, 2010; Culimore, 2010

Figure 2 â&#x20AC;&#x201C; Smartphone Operating Systems

Hardware ability is also considered a key factor in deciding whether a mobile phone can be identified as a smartphone. According to the definition of Cassavoy (2010), a smartphone should possess a QWERTY keyboard which does not necessarily have to be a physical keyboard; it could also be made available through touch screens. Furthermore, it is more common for smartphones to possess larger high-resolution screens than basic mobile phones; however, it is difficult to draw up specifications that would be specific to smartphones (Litchfield, 2010).

MSc Dissertation l Aberdeen Business School

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Literature Review

Large high resolution screens

Support 3G networks

Allow installation of applications

Support QWERTY keyboard

Remote Data transfer

Able to conduct complex tasks Advanced PIM & Calander options

(also possible through software support)

Camera, GPS, Gyroscope, Wi-Fi, Bluetooth

Additional

Use smartphone OS

Hardware

Software

Chapter 2 l The Rise of Smartphones

Large data capacity

Figure developed by author

Figure 3 â&#x20AC;&#x201C; Smartphone Specifications

In Figure 3 the author has outlined some of the key features a mobile phone should possess in order to qualify as a smartphone; based on the sources consulted earlier. This will provide a basic understanding of the concept of a smartphone throughout the research. Unfortunately, it proved to be practically impossible to draw up a single concise definition of a smartphone.

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Chapter 2 l The Rise of Smartphones

Literature Review

2.2 Origin Smartphones have undergone many developments to become the devices we know them as today. In order to understand the functionality and features of a smartphone, one must familiarise itself with its predecessors. A smartphone is a hybrid device inspired by the mobile phone and the Personal Digital Assistant [PDA]. It was Apple computers who coined the term PDA in 1992, referring to a small, hand-held electronic device that would allow common clerical tasks including note-taking, maintaining a contact list and keeping a diary (Daniels, 1994a). PDA’s in theory were supposed to be small enough to fit in one hand, lacking ‘real’ keyboards (Daniels, 1994a). The issue with the keyboards was resolved by integrating a stylus as an input device. PDA’s could be grouped between two categories, namely: Palm Handhelds produced by Palm Inc. and Pocket PC’s produced by Microsoft, this categorisation was based on their operating systems and manufacturers (Livingston, 2004). According to Daniels (1994a) a PDA was only useful if it possessed three key features, namely:

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 Software able to convert input crawl into identifiable text, commonly referred as handwriting recognition  The ability to transfer data between the device and a computer  Good communications ability in order to access e-mail and others. Livingston (2004) stated that once PDA’s are connected to the internet they comprise of the same set of features as a smartphone, with the exception of voice. It must be noted that smartphones at the time of writing were not as advanced as they are presently produced. According to Livingston (2004) PDA’s have the following features: messaging, browsing, extensibility, PIM functionality and miscellaneous. With extensibility, Livingston (2004) is referring to the ability to download and install software, whereas with miscellaneous he is referring to calendars, calculators and games. The other device that was essential to the development of smartphones was the mobile phone. Its primary purpose was to enable its users to telecommunicate by removing location barriers. This device has been used in far greater numbers than PDA’s and is therefore more recognised, this could also be linked to the fact that PDA’s were being primarily used by businesses, whereas mobile phones were being used by businesses and consumers (O’Brien, 2008). The word mobile is MSc Dissertation l Aberdeen Business School

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derived from the Latin word mōbilis, which is defined as movable, loose, quick and flexible (Latin Dictionary, 2008). Motorola unlocked mobility back in 1983 when they launched the DynaTAC 8000X, the world’s first mobile phone (Edwards, 2009). The $3.995,- worth of device weighted nearly 1 kilogram and had a height of roughly 25 centimetres, stretching the definition of portability (Figueroa, 2010). At present the smallest phone, the Modu weighs only 40 grams and has a height of 7.2 cm (Hanlon, 2010; Zedge, 2010). After years of development, both of the devices (PDA’s and mobile phones) became small and intelligent enough to be merged into a single device. In 2004, researchers at Forrester research identified that PDA’s and smartphones were heading for a collision course and that it would be inevitable for them to become a single device (Golvin and Jackson, 2004) . It was as early as 1992 when IBM released the allegedly first smartphone (O’Shea, 2009).Since then there have been many successful and less successful attempts by several manufacturers including Nokia, Research in Motion, Apple, Microsoft, Palm and many other firms to capture a slice of the smartphone industry.

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2.3 Development Smartphones have been on the market for a while now; however initially there was much hesitation among mobile phone users to switch, as early smartphones were expensive, only a limited set of models were available and many people preferred the idea of having two separate devices (Crouch 2000). Since then the smartphone landscape has changed drastically, with each year sales exceeding the previous years (Figure 4). 200 180 160 140 120 100 80 60 40 20 0 2003

2004

2005

2006

2007

2008

2009

Sales figures x million Figure developed by author utilising Best (2007), CIA (2006,) Davies (2008), Gartner (2010) and Strategy Analytics (2010)

Figure 4 â&#x20AC;&#x201C; Smartphones sales: Historical Figures

Market prospects are highly favourable; smartphones sales have risen 55.4% this year and with sales expected to reach 247 million units by the

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end of 2010; many companies in the sector are keen on taking active part in this lucrative market segment (ISuppli, 2010; Nichols, 2010). Nokia which is the largest smartphone manufacture with 40% market share, manufactured about 20 different smartphones in 2009 (Gibbs, 2009; Kang 2010). HTC Corp, a company that produces powerful handsets also released approximately 20 different phones in 2009 (HTC, 2010; Sherwood, 2009). One of the key differences within the smartphone market is the increased number of major players in comparison to a decade ago.

There are currently roughly eight

prominent companies involved in the smartphone segment producing either hardware or software or in some cases both [Figure 5].

Software

Hardware

HTC RIM Google Microsoft Palm Samsung Nokia Apple

Figure produced by author

Figure 5 â&#x20AC;&#x201C; Major players in smartphone business MSc Dissertation l Aberdeen Business School

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The largest computer manufacturer HP recently acquired Palm Inc., which has endured years of struggling in the highly competitive market of smartphones (Shofield, 2010).

Google recently joined the

smartphone environment by developing Android, an operating system for mobile devices (Android, 2010). However, Apple made the most significant entry when it introduced the iPhone in 2007, immediately affecting the shares of its competitors RIM and Palm (Arrington, 2007). Although the iPhone was not revolutionary, as it did not introduce any new features, it did combine existing features into a device that was able to perform them very well (Klatell, 2007). The smartphone was praised for drastically improving web-browsing experience and introducing a platform for applications; the app store (Foresman, 2009; Hesseldahl, 2008; Riley, 2007). The app store allowed the iPhone to become a consumer and a business device at the same time as it contained applications for a wide range of purposes (Hoover, 2008). It blurred the long-standing border between consumer and business devices.

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2.4 Consumer vs. Business Predecessors of the smartphone: the PDA and the mobile phone each had specific target audiences. Manufacturers either marketed their devices to businesses users or to consumers. The high purchase cost of early PDAâ&#x20AC;&#x2122;s and its functionalities primarily attracted business users, whereas consumers adopted mobile phones more rapidly. Contemporary users of smartphone devices are both business users and consumers. The demand among consumers is being fuelled by the desire for the ultimate converged devices that support functionalities such as touch screen, camera/video support, dual SIM card, Wi-Fi and integrated GPS (Shein, 2010). Two other limiting factors have been eliminated as well, namely: smartphones have become available widely and there has been a significant decrease in purchase price (Hantke, 2010). The new generation of consumers is furthermore highly connected, Generation Y for example started using technology on average from when they were 3 years old (Rosen, 2004). Smartphones are being adopted by generation Y at an increased speed as it allows them to stay in connected while use a wide range of applications. The worldâ&#x20AC;&#x2122;s largest social networking website Facebook; boasts with more than 500 million MSc Dissertation l Aberdeen Business School

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users (Facebook, 2010), while its closest competitor; Twitter has more than 75 million users (Gaudin, 2010). Both of these websites attract enormous traffic on daily basis. People like to access these websites from everywhere they go: home, work, restaurants, work, public transport etc. With consumers demanding advanced features, smartphones have become extremely popular. The same consumers intend to use their smartphones at their office, as it allows them to access their favourite websites and applications, while maintaining all personal information such as contact details and other media items. High profile executives within organisations have been held accountable for making personal smartphones to be accepted as business devices (Timson, 2010). Instead of developing smartphones for business and consumer segments, smartphones can now be targeted to any audience. The difference among users is now determined by their usage of their smartphones. Extendibility allows users to use business and personal applications at the same time, introducing the concept of mobility and productivity, which is affecting many work place environments.

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2.5 Chapter Summary The aim of this chapter was to expand on smartphones. As smartphones form a key part of the research, gathering substantial amount of information in order to understand the purpose and the use of smartphones was conceived to be important. It became apparent that defining smartphones would be particularly difficult, as no accepted definition exists. The author aimed to define smartphones using recent articles. Although it was not possible to draw up a concise definition, authors in the field shared similar ideas on what was to be referred as smartphones. The chapter continued by highlighting the origins of a smartphone, which is a hybrid descendant of a PDA and a mobile phone. The developments around smartphones have not stood still in the past decade and have led to greater acceptance and wider availability. Information provided in this chapter will be used in conjunction with the following chapters in which the author will discuss how smartphones have affected the workplace, how different generations are picking using

smartphones and how academic theory supports this

development.

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3 The Virtual Office Business is changing, as information technology is altering what people do and how do they do it (Raymond and Cunliffe, 1997). No longer is it necessary for individuals to occupy a particular space every single day, equipped with mobile phones, internet and laptops; people can choose when as well as where to work (Duffy, 1997). The virtual office is a place where employees can interact, collaborate and be productive at any given time and anywhere in the world. These employees consist of a new generation of workers also referred to as knowledge workers. The management guru Peter Drucker first used the term â&#x20AC;&#x2DC;knowledge workerâ&#x20AC;&#x2122; in 1959 (Gregory, 2004). The concept describes workers that access data, use knowledge, employ mental models and apply significant amount of concentration and attention in completing their work (Davis, 2002). This chapter will discuss the concept of a virtual office, addressing how organisations are using various models for implementation. The chapter will furthermore discuss the role of knowledge workers in contemporary business.

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3.1 Understanding the Virtual Office The work environment is changing continuously, influenced by people’s perception of an effective work environment and technological developments. According to Genova (2010), the 20th century office is dead. Organisations are intensively exploring new ways of working. “Location is becoming less important to organizations as work is becoming something you do, not someplace you go” (Helms and Raiszadeh, 2002, p 241). There are generic degrees of virtualness described in the literature (Helms and Raiszadeh, 2002, Shao et al, 1998). Figure 6 highlights the three degrees of virtualness.

1. 100% Virtual

2. Hollow Firms 3. Virtual Offices

Figure produced by author utilising Helms and Raiszadeh (2002)

Figure 6 – Levels of virtualness

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Organisations in the first category are fully virtual; some web-based organisations only exist as a set of webpages, while all other functions are outsourced (Helms and Raiszadeh, 2002). These types of organisations are highly responsive and possess the ability to adjust competencies as competition changes strategy (Werther, 1999). Helms and Raiszadeh (2002) describe the second category of virtualness as less extreme. The hollow firm is an organisation that exists not necessarily to offer products or services themselves, but to bring other organisations together (Wickham, 2006). The formal organisation is kept as small as possible, focussing primarily on essential and core activities to create value of which it reaps the rewards (Helms and Raiszadeh, 2002; Wickham, 2006). The balance between what is done inside the company and what is done outside the company is changed to achieve higher levels of competitiveness (Werther, 1999). The final category is the virtual office. Traditionally the term virtual office has referred to shared office space and/or business services (Allen, 2008). This could include services as: business address, computers, telephones, receptionists, meeting rooms, legal and accounting (Allen, 2008). However, developments have changed the understating of the concept of virtual office. The virtual office is now defined as a work

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environment in which employees work cooperatively and remotely from different locations using a computer network (Walker and Herrmann, 2004). This allows employees to commute to work using telephones and other telecommunications equipment rather than utilising traditional forms of transit (Alverson, 1998). A more recent description is provided by bNet (2010) which defines a virtual office as â&#x20AC;&#x153;a workplace that is not based in one physical location but consists of employees working remotely by using information and communications technologies. A virtual office is characterized by the use of teleworkers, telecenters, mobile workers, hot-desking, and hoteling, and promotes the use of virtual teamsâ&#x20AC;?. Ferreira et al (2009) support this definition as they state that organisations that employ people that are enabled to work from a distance are referred to as virtual companies. In order to limit the extent of the research; the dissertation will use the definition provided in the third category when it refers to a virtual office.

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3.2 Virtual Organisations Kleinrock (1996, 1998) claimed that advanced wireless technology, internet, GPS systems and other technologies would realise the vision of working anywhere at any time. This vision has been realised by the birth of the virtual organisation, which is an environment in which employees can operate remotely from each other and their managers (Cascio, 2000). Shao et al (1998) conducted research that identified four important characteristics of a virtual organisation. The four characteristics they defined were connectivity, purpose, technology and boundary [Figure 7]. They highlighted that although they stressed these characteristics, these may not be the only one that may define a virtual organisation.

Connectivity

the creation of unity or linkage through structural change, breaking of constraints or overcoming of previously existing barriers

Purpose

the objective that provides the incentive for creating the new organisation and which serves as the cohesive force to hold the virtual organisation components at least temporarily together

Technology

the enabling factor that allows the breakthrough and makes the virtual form possible

Boundary

the separation of those who are part of the virtual organisation and those who are not, in the absence of any clearly visible physical border lines. It defines who can share its activities Figure adopted by author from Shao et al (1998: p 306, table 1)

Figure 7 â&#x20AC;&#x201C; Virtual Organisation variables MSc Dissertation l Aberdeen Business School

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The four characteristics highlighted by Shao et al (1998) are still valid in todayâ&#x20AC;&#x2122;s organisations. Connectivity in a virtual organisation describes the act of sharing knowledge at a distant from each other and allowing employees to access company resources including data, printers and software (Shao et al, 1998) and technology can refer to intelligent hardware such as IT-infrastructure and smartphones allowing data to be shared among employees over a distance (Shao et al, 1998).

External

Office

Mobile

Employees

Office

Supplier s Clients

Smartphone s Connected through internet

Centrally Stored data

Laptops

Employees

Web Access

Figure developed by author

Figure 8 â&#x20AC;&#x201C; Virtual Organisation Framework

A comprehensive virtual organisation can be completely interlinked with suppliers, clients and employees [on/off location] with all data being centrally stored [Figure 8]. However, several approaches have been adopted by organisations to create a suitable degree of virtualness. These concepts are discussed in chapter 3.3.

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3.3 Key concepts There are a range of approaches to a virtual office. The degree of mobility of an employee within a company may vary from role to role. Organisations are likely to use a blend of concepts that allow the firm to enable a virtual workplace. Academicians describe four concepts that a virtual office may employ [Figure 9 and Figure 10].

Telecommuting

Tethering

Hot desking

Fully mobile

Figure produced by author utilising Ferreira et al (2009); Helms and Raiszadeh (2002)

Figure 9 â&#x20AC;&#x201C; Virtual Office: Key Concepts

3.3.1

Telecommuting

Telecommuting is an arrangement in which employees with fixed company offices are allowed to occasionally work at home (Ferreira et

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al, 2009; Helms and Raiszadeh, 2002). Cross and Raizman (1987) predicted that telecommuting would be the future of working, now it is considered the first step towards the fully virtualised company. The benefits of telecommuting are flexibility and increased productivity (Helms and Raiszadeh, 2002). Helms and Raiszadeh (2002) furthermore state that the primary disadvantage of telecommuting is the minimal cost saving. However this statement is disputed by recent research which indicates that businesses in the United States could save approximately $10.000,- per employee per annum if they practised telecommuting (BusinessGreen, 2010). The benefits according to the research would derive from cost savings on electricity, real-estate and related costs such as: furniture, supplies, maintenance and space consolidation (BusinessGreen, 2010). A research conducted by Brigham Young University (2010) indicates that employees that are offered telecommuting options are more productive than office workers as their ability to balance work and family life is enhanced. Another advantage of telecommuting is the fact that the managerial impact is minimal and therefore there is less need for new management approaches (Helms and Raiszadeh, 2002).

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3.3.2

Literature Review

Tethering

This term is used by Ferreira et al (2009) to describe a setting in which employees have a certain degree of mobility, but are expected to report to an office on a regular basis. The employees do not have a fixed office location, but do have a fixed work location (Ferreira et al, 2009). The concept is also referred to homeworking. In this setting the company often provides necessary equipment for the employee to conduct the work from a fixed location, i.e. home based office (Helms and Raiszadeh, 2002). The benefits of tethering according to Helms and Raiszadeh (2002) are reduced real-estate costs, flexibility and commuting avoidance. The Department for Business, Innovation & Skills (2010) goes further in listing the benefits and indicates that allowing employees to work from home can have number advantages such as:  Improved retain of employees; i.e. it can help parents to provide childcare and work  Wider pool of applicants; i.e. disabled people that are unable to leave their homes  Increased productivity; i.e. employees are not required to commute MSc Dissertation l Aberdeen Business School

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 Increased staff motivation; employees report reduced stress and sickness levels  Geographical advantage; i.e. sales staff could be based closer to clients. As was the case with telecommuting, employers enabling their workers to work from home can expect approximately 19 additional working hours, without straining their employees (Devlin, 2010) Tethering also has its drawbacks, the Department for Business, Innovation & Skills (2010) again supplies a list of drawbacks associated with tethering, namely:  Managing remote workers may prove difficult  Potential deterioration in skills and quality of work  Initial cost of training and equipment  Difficulty maintaining staff development  IT issues  Increased telecommunications costs  Increased difficulty in maintaining team spirit  Tethering may be unsuitable for certain jobs

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Helms and Raiszadeh (2002) state similar drawbacks emphasising that it is important that managers must incorporate frequent face-to-face contact to maintain a sense of belonging and commitment to objective and goals. 3.3.3

Hot desking

This system is a development of the original concept of ‘hoteling’. Under this scheme, employees were not always physically present and as a result were not assigned to a fixed office space (Ferreira et al, 2009; Helms and Raiszadeh, 2002). Instead, they could reserve a spot/cubicle “hotel room” at company offices that provided essential equipment to conduct the work (Ferreira et al, 2009; Helms and Raiszadeh, 2002). This concept when introduced was used alongside existing settings. Offices in general support three types of seating settings, namely:  Shift

space is occupied during a particular shift, on completion of the shift; the space is ‘released’ to another employee.

 Assigned

a single person occupies the space

 Unassigned

space is available for everyone to use.

Modern businesses are embracing the concept of unassigned workspace, which is often referred to as hot desking. The main MSc Dissertation l Aberdeen Business School

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difference between hoteling and hot desking is the fact that with hoteling, staff has to reserve a work station, whereas this is not necessary when the organisation is working with hot desks. Daniels (1994b) explains the concept in the 90â&#x20AC;&#x2122;s as an idea that was derived from navy practises where a single bed was used by several marines to save valuable space. As more and more organisations move towards new ways of working, utilising hot desks has become increasingly popular. The benefits of using this system is that it frees up office space and may reduce office size, space and cost (Helms and Raiszadeh, 2002). Allowing employees to select their own space can result in increased creativity and productivity (Helms and Raiszadeh, 2002).

It will

furthermore allow them to select suitable timings and locations to work. The drawback of using this system is that managers must provide a level of amenity so that the benefits to the workers are clear (Helms and Raiszadeh, 2002). However, peopleâ&#x20AC;&#x2122;s attitudes towards working have changed significantly in the past decade. Unlike the Baby Boomer generation, generation Y perceives this type of mobility as a benefit rather than a drawback.

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3.3.4

Literature Review

Fully mobile

In this setting, employees do not have a desk at home or at the office (Ferreira et al, 2009; Helms and Raiszadeh, 2002). They can work from anywhere at any time using a phone and a portable computer (Helms and Raiszadeh, 2002). The benefit of this approach according to Helms and Raiszadeh (2002) is the increased customer interaction. Relatively inexpensive mobile equipment allows the employee to be on the move and get closer to its clients. A drawback could be that the travel demands may increase and that managers may be required to undertake extra effort to maintain contact and commitment to company objectives (Helms and Raiszadeh, 2002).

High Fully mobile

Hot desking Mobility Tethering

Telecommuting

Low

Virtualness

High

Figure produced by author

Figure 10 â&#x20AC;&#x201C; Mobility / Virtualness Grid

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3.4 Knowledge workers Significant changes have occurred during the past century in work environment. The western countries have developed themselves from manufacturing and labour intensive industries to service and knowledge based countries. Employees have evolved over time, adapting to different circumstances and management practises. They have been affected by many ideologies over time [Figure 11].

Factory Workers • Born in the 18th century • Extension of the machine • Reward in cash

Office workers • Born in the 20th century • Fixed responsibilities • Reward in cash and incentives

Knowledge workers • Born in the 21st century • Outcome is more important than activities • Reward in cash, incentives, trust and freedom Figure produced by author

Figure 11 – Evolution of Workers

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Employees in the 18th century were considered to be an extension of the machine they were operating. They performed their work under strict supervision and low levels of trust from the management. They were remunerated in cash with no additional rewards for their efforts. During the 20th century a new type of employee evolved, the office worker. Employees were assigned fixed responsibilities, which had to be completed within specific working hours. These employees were rewarded with payment in cash and additional incentives to increase productivity. The most recent evolution in employee perception is the one of a knowledge worker. 3.4.1

Defining Knowledge Workers

Technological advances have eliminated many of the uncomplicated jobs within corporations (Cardinali, 1998), while at the same time much of the physical work has moved to countries with cheap labour. This progress has forced developed societies to build a knowledge economy. The knowledge economy according to Powell and Snellman (2004: p. 199) exists of â&#x20AC;&#x153;â&#x20AC;Śproduction and services based on knowledge-intensive activities that contribute to an accelerated pace of technical and scientific advance, as well as rapid obsolescence. The key component of a knowledge economy is a greater reliance on intellectual capabilities

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than on physical inputs or natural resources”. Essential to developing a knowledge-based economy are knowledge workers. The work knowledge workers perform is inherently cognitive, instead of physical [Davis, 1999]. According to Davis (2002: p. 68) “Knowledge work is human mental work performed to generate useful information and knowledge”. As knowledge has increasingly become recognised as a corporate asset, it has been reasoned that knowledge has superseded traditional factors of production to become the leading corporate and competitive asset (Havens and Knapp, 1999). Knowledge lies within the employees of an organisation, therefore employees are one the most important assets of an organisation, and the success of any company depends upon the productivity of its employees (Weinstein, 2005). Peter Drucker stated: “Every knowledge worker in the modern organisation is an ‘executive’, if by virtue of his possession of knowledge, he is responsible for a contribution that materially affects the capacity of the organisation to perform and to obtain results” (Drucker, 1966, p.5). Effectively managing knowledge workers is therefore essential to create a competitive edge in the fast passed business environment. Organisations should attempt to meet the tangible and intangible requirements of these employees.

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3.4.2

Literature Review

Managing Gold-Collar Employees

Managing employees has become ever more complicated as the nature of their work progressively reaches new levels of complexity. Historically, the workforce has been divided into two groups, namely: the ‘blue collar’ workers (factory workers) and the ‘white collar’ workers (office workers). Blue-collar workers are assigned manual labour in exchange for an hourly pay (Kelley, 1990). The work is done under strict supervision and results are measurable. The white-collar workers conduct their daily activities in an office environment. The work a whitecollar employee performs could range from archiving files to solving complex organisational issues. As knowledge workers gain increasing value in the eyes of the employers, a new category has been created, the ‘gold collar’ employees. Managing gold collar employees requires significant changes in management approaches. Unlike white-collar employees that deal with information, gold collar employees deal with knowledge. “That knowledge is dynamic, and the goal of management should be enhancing, exchanging, and using it effectively rather than preserving and systematizing it like a static resource” (Wonacott, 2002: p.1). This

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dynamic process creates a tension between absorbing new information and exploiting existing knowledge (Crossen et al, 1998). A more productive approach to managing gold collar workers includes concentrating on end results by settings goals rather than controlling the process involved (Wonnacott, 2002). Kelley (1990) stated that it is important for management to understand that management theories and tools that are designed for blue-collar workers are not appropriate for the complex work activities of gold collar workers. Management should furthermore allow the leeway and flexibility necessary for exploring and tinkering, from which new solutions, new strategies and new learning results can be attained (Wonnacott, 2002). Knell (2000) identifies knowledge workers as â&#x20AC;&#x2DC;free workersâ&#x20AC;&#x2122;, this as the emergence of new type of complicated expertise arises, which is highly valued in the marketplace, shifting power to the knowledge worker as they become less dependent on their employers. This shift in power provides knowledge workers considerable influence over their work (Glaser, 1976; Donelly, 2006). Along with Kelly (1990); Knell (2006) has also argued that new approaches to management and organisations are required, as he indicates that knowledge workers are making two demands from their employment relation, namely: firstly they insist to

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control their development and secondly they are demanding job characteristics that reflect their own philosophy of work, career and life. According to Doyle and Reeves (2001) knowledge workers are ‘time sovereign’, not bound by time and able to decide their own work schedule. Due to the interdependent employment relation and their empowered status, knowledge workers are often managed using ‘soft’ or ‘high’ commitment HRM style (Donelly, 2006). This allows knowledge workers to demand from employers to offer them the benefits of remote working as development in mobile technology and the nature of work continue to allow new methods (Donelly, 2006). It is not very likely that every knowledge worker is able to exercise a significant amount of power of its employer. Many knowledge workers are allowed to operate flexibly within the restrictions defined by their employees, which are necessary to fulfil client demands and expectations (Gill, 2000). However, the trend in increased level of autonomy in employment relationship

becoming

increasingly

popular

among

many

organisations.

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3.5 Chapter Summary The number of organisations utilising mobility is increasing greatly, with main drivers being economic benefits and emerging new forms of connections, devices, applications and services (Vartiainen, 2006). This development initiated the trend of virtual organisations. Organisations have adopted different form of virtualness, ranging from fully mobile to a blend of several structures. Although the trend to virtualise a company is economically attractive for organisations, it is becoming apparent that knowledge workers are becoming more demanding than their fellow workers are. This has forced organisations to respect the requests of these empowered employees by providing them with a level of autonomy. With mobility comes connectivity, therefore organisations have to consider how they intend to connect their mobile employees with other sources in the company network. Internet, laptop and smartphones have proved to be an effective tool in addressing this issue. Next chapter addresses how smartphones in particular are affecting the workplace.

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4 Smartphones in the Workplace Smartphones are becoming increasingly popular in workplaces. A recent survey indicated that 340 small and large companies in Europe and US plan to boost the deployment of smartphones, while dramatically slowing the deployment of laptops (Hamblen, 2008). Jackson (1999, p4.) stated that â&#x20AC;&#x153;it must be noted that existing ideas and assumptions about work and organisations, as well as corporate policies, business strategies and management philosophies shape the way what we think about new technologies â&#x20AC;Śâ&#x20AC;?. Jackson was correct in his statement, as the dynamic growth in the use of smartphones has been largely driven from the top downwards, with senior executives, sales staff and field employees to be among the first to embrace the smartphone (James, 2008). From a strategic perspective, smartphones as a tool allow businesses to increase productivity and get closer to their clients; from a business perspective, new technological developments allow businesses to employ new practises that result in cost savings and improved business processes (Andriessen and Vartiainen, 2005).

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4.1 Workplace development As mobility is becoming a key factor in todayâ&#x20AC;&#x2122;s workplace, it is creating new challenges to both companies and their employees (BenMoussa, 2003). The are several reasons for companies to seek mobility, for it allows organisations to respond more promptly to rapidly changing market environment and to provide knowledge workers with more autonomy. As early as 1998, multinationals such Procter & Gamble, IBM, HP, AT&T and Compaq had partially or fully eliminated their field sales and customer service offices by replacing them with technology including portable computers, cellular phones and fax machines (Davenport and Pearlson, 1998). Contemporary companies are extending the limits using emerging technologies. Accenture UK and Vodafone collaborated on improving the mobility and productivity of Accenture workforce by applying the latest technologies [Figure 12] (Vodafone Group, 2004).

Figure produced by author

Figure 12 â&#x20AC;&#x201C; Accentureâ&#x20AC;&#x2122;s Mobile solution

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In the case of Accenture, employees were equipped with gear that allowed their mobile devices to be permanently connected to the corporate network at any time and almost anywhere. This allowed the employees to keep unproductive downtime to a minimum. It also provided the workforce with autonomy to decide when and how to work, allowing them to make better use of their time. A common demand among knowledge workers as discussed in the previous section. Microsoft NL is another example of an organisation embracing mobility. Under the name of â&#x20AC;&#x2DC;The New world of Workâ&#x20AC;&#x2122;, they have overhauled existing business practises and replaced them with shared workspaces, laptops, smartphones and other software and hardware (Microsoft NL, 2010). Again, the motivation was to enable employees to become more productive and provide them with freedom to decide when and how they want to work. Mobile work solutions are enabling organisations and employees to approach work differently, bringing new opportunities and treats to businesses.

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4.2 Opportunities and Threats With the rise of smartphones in the workplace and the increased mobility of employees, businesses are increasingly dealing with new issues; ranging from legal obligations to information management 4.2.1

Opportunities

As smartphones have become more powerful and capable, they are gradually replacing tasks that other devices were required for (James, 2008). Smartphones are highly mobile devices that allow employees to collaborate and share data from virtually anywhere. This allows organisations to respond more promptly to changes in the environment. Smartphones also have a positive impact on increasing productivity and provide employees with extended autonomy (Bradley, 2010). By allowing employees to work off-site, organisations can furthermore reduce their costs of real estate and focus on flexible working schemes.

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4.2.2

Literature Review

Threats

It is clear that smartphones can be beneficial to an organisation; however, some serious threats must be taken into account. Genova (2010: p. 119) for instance states: â&#x20AC;&#x153;Although the disappearing office boundaries caused by technological advances have obvious benefits for employers and employees, something else is dissolving along with those cubicle walls: clear limit lines of employer liabilityâ&#x20AC;?. The increasing popularity of the concept of virtual office, has led to a fresh breed of lawsuits, expanding in the area of employment, overtime compensation and confidentiality issues (Genova, 2010). Security issues will similarly affect organisations, as smartphones will require protection from viruses and malware or employ encryption to ensure that sensitive corporate data is not leaked when smartphones are lost or stolen (James, 2008).

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4.3 Chapter Summary Increasing mobility of the workforce employing latest technology is being considered very beneficial to businesses and their employees. Smartphones have been very effective in fuelling this trend, as they are relatively cheap to put into business. While it is important for organisations to understand the threats that exist in increasing mobility, the positive impact is that employees are able to decide when and how they work, while organisations can reduce their base costs and increase the productivity of their workforce. However, contemporary workforce within a single organisation can exist of up to four different generations. Although the latest generation is very tech savvy, this may not be the case for the oldest generation in the workforce. The next chapter identifies and discusses the different generations and analyses how they have been impacted by smartphones.

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Chapter 5 l Multigenerational Workforce

Literature Review

5 Multigenerational Workforce The concept of work being something you do instead of somewhere you go was initially resisted by the baby boomers (Daniels, 1994b). The idea of having an office and a desk offered them a sense of job security. The baby boomers had a significantly different perception and mentality towards work than generation Y, the latest generation to join the workplace. Each generation has a different perspective on social life, work life and methods of communication. Contemporary organisations may have to deal with four different generations at a single time, affecting the way policies are drawn and what methods of conducting business are used. This chapter will elaborate on the various generations that are currently active in the workplace and will aim to critically analyse the differences among them. Finally, the chapter will discuss how smartphones have affected the different generations.

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5.1 Generations A generation is defined as a cohort of individuals that are born into a specific political, economic, technological and social moment, sharing key historical and social life experiences (Kupperschmidt, 2000; Rentz et al, 1983; Smola and Sutton, 2002; Strauss and Howe, 1992). These experiences have a similar effect on the individuals of a cohort; as a result,

each

generation

develops

distinctive

personality

(Kupperschmidt, 2000; Smola and Sutton, 2002; Schewe & Noble, 2000). This concept is described by the generational theory which assumes that it is possible to generalise cohort differences, however these assumptions may not be fully objective or absolute (Marker, 2004). The generational theory enables better understanding and forecasting of tendencies of individuals born in a specific cohort (Lamm and Meeks, 2009). Society has created labels for each of the generation; however, these labels are often inconsistent as the timespan used to define them are different (Smola and Sutton, 2002). It is suggested that each generation lasts nearly two decades, after which it is preceded by a newer

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generation (Shepard, 2004). This research will address four generations that are relevant to today’s workplace. 5.1.1

Veterans

The oldest generation is that of the ‘veterans’ also referred to as ‘matures’ and the ‘silent generation’ (Heffernan, 2006; Jurkiewicz and Brown, 1998; Pennington-Gray and Lane, 2001). The veterans are referred to the silent generation, as they are perceived to be cautious, indifferent, have a lack of adventure and imagination (Pennington-Gray and Lane, 2001). They were born between 1922 and 1945 (Heffernan, 2006) and as a result individuals of this generation will be fully retired by the end of 2010. Members of the Silent Generation are the parents of the Baby Boom Generation, currently one of the largest generations (Pennington-Gray and Lane, 2001) 5.1.2

Baby Boomers

Baby Boomers are considered the most competitive generation (Raines, 2003). Born between 1946 and 1964 (Heffernan, 2006), they consider themselves optimistic, resourceful and open minded experimenters, not afraid to use technology based products (Bernstein, 2001; Hicks and Hicks, 1999; Yang and Jolly, 2008). Due to the size of this generation

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and the times they have experienced, individuals of this cohort have had a profound impact on global societies (Glass, 2007). 5.1.3

Generation X

Generation X is significantly smaller than the previous generation, which is attributed to easier access to birth control and the decision to have smaller families (Glass, 2007, Zemke et al, 2000). They are often portrayed as a selfish generation (Cennamo and Gardner, 2008); having more commitment to their own careers than the organisations they are employed by (Miller and Yu, 2003). Generation X is born between 1965 and 1980 (Heffernan, 2006). As children they experienced their parents being laid off during the mass corporate layoffs in the 1980â&#x20AC;&#x2122;s which had an impact on their work related viewpoint (Glass, 2007, Reynolds, 2005). Individuals from this are led by their â&#x20AC;&#x2DC;survivorâ&#x20AC;&#x2122; mentality and favour fun, informality and creativity (Zemke et al, 2000). 5.1.4

Generation Y

Generation Y is the latest generation to join the workforce (Glass, 2007). They are also known as Nexters, Echo Boomer and Millennials (Lamm and Meeks, 2000). Members of this generation were born between 1981 and 1999 (Heffernan, 2006).

Individuals of this generation were

constantly encouraged and coached by their parents, which resulted in

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strong ambition, increased optimism, over confidence and high flyers mentality among the individuals of this cohort (Zemke et al, 2000). They are known to lack long term attachment or commitment to an organisation and regard jobs primarily as a mean to build a career resume (Lamm and Meeks, 2000). 5.1.5

Generation Z

Individuals from Generation Z have yet to join the workforce. They are born between 2000 and present. This pre-teen generation is also referred to as Generation I (internet) and Generation Next (Lyon, 2010a). This name has been given to them as they are seen as true digital natives, having no memories of pre-smartphone world (Lyon, 2010a). It is interesting to note that large mobile manufacturers like LG electronics are already busy producing smartphones to address this cohort (Ziegler, 2010). This generation will however not be addressed in this research extensively, as they are currently too young for the purpose of this research.

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5.2 Key Differences A wide range of author has discussed the differences among generations (Cenamo and Gardner, 2008; Glass, 2008; Jorgensen, 2003; Lamm and Meeks, 2009; Macky et al, 2008; Smola and Sutton, 2002; Phillips and Addicks, 2010; Pitt-Catsouphes and Smyer, 2007; Yang and Jolly, 2008). Although each of them approached the area differently, most of them agreed on key differences among the generations. Understanding the differences among generations is becoming increasingly important for organisations and their management. It is the first time that organisations are employing four different generations at the same time (Frey, 2008; George, 2008; Hammill, 2005; Rosen, 2004). In an article on the American Management Association website, Jenkins (2007) stated, â&#x20AC;&#x153;Each group has its own distinct characteristics, values, and attitudes toward work, based on its generationâ&#x20AC;&#x2122;s life experiences. To successfully integrate these diverse generations into the workplace, companies will need to embrace radical changes in recruitment, benefits, and creating a corporate culture that actively demonstrates respect and inclusion for its multigenerational work forceâ&#x20AC;?. The key differences among the four generations are highlighted in Figure 13.

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Veterans

Baby Boomers

Gen X

Gen Y

1922 - 1945

1946 - 1964

1965 - 1980

1981 - 1999

Work ethics and values Hardworkers

Workaholics

Eliminate the task

Multitasking

Respect authority

Work efficiently

Entrepreneurial

Sacrifice

Desire quality

Want structure and direction Sceptical

Goal oriented

Duty before fun Adhere to rules

Question authority

Tolerant

Meaning of work An obligation

A difficult challenge

An exciting adventure

A mean to an end fulfillment

A contract

Leadership styles Directive

Consensuel

Command and Control

Collegial

Everyone is the same

Supportive

Challenge others

Manage results

Participative

Ask why

Interactive styles Individual

Team player

Entrepreneur

Participative

Communication Formal

In person

Direct

Memo

Digital

Immidiate Feedback & Reward

No news is good news

Don't appreciate it

Regular feedback

Meaningful work

Money

Satisfaction in job well done

Title Recognition

Freedom is best reward

Immediate feedback Freedom

Work & Family balance Kept strictly seperate

No balance

Balanced

Work to live

Figure developed by author utilising Glass (2008), Hammill (2005), Heffernan (2006), Lamm and Meeks, (2009), Leitschuh (2007) Macky et al (2008); Smola and Sutton (2002)

Figure 13 â&#x20AC;&#x201C; Generational Differences

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5.3 Technology Acceptance Each generation approaches technology differently, based on their beliefs and attitudes towards life and change (Rosen, 2004). The Silent Generation was raised without modern technology, whereas the Baby Boomers were the first technological generation (Rosen, 2004). Baby Boomers are frequently addressed by technology companies as they are wealthier than individuals from other cohorts and tend to respond to changing trends (Haynes, 2004). Members of Generation X were the first to be considered computer and internet literate and have a high affinity for technology (Kupperschmidt, 2000; Yang & Jolly, 2008), whereas generation Y was born and raised with technology (Jorgensen, 2003; Rosen, 2004). 5.3.1

Smartphones

The adoption of smartphones among the different generations varies significantly. Baby Boomers tend to adopt new technology only after its benefits are demonstrated and if a need is being satisfied (Chen, 2010). Currently 21.1% of the Baby Boomers use a smartphone, whereas more than half of Gen Y uses a smartphone [Figure 14] (eMarketer, 2010).

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Chapter 5 l Multigenerational Workforce

Veterans

Baby Boomers

Literature Review

Gen X

Gen Y

Figure developed by author utilising eMarketer (2010)

Figure 14 â&#x20AC;&#x201C; Smartphone adoption among generations

In case of baby boomers, the manufacturers are pushing smartphones, as baby boomers control more than 83% of consumer spending, which makes them a highly lucrative segment (Lyon, 2010b). Generation Y on the other is pulling the technology and demanding continues product development. Generation Y chooses the technology, the products and the services they want to buy and use (Whittaker, 2010). However, this tech savvy generation does not need much convincing to buy into the latest technology (Manning-Schaffel, 2002). This exemplifies the difference in attitudes among the two generations. A recent survey [Figure 15] revealed that 69% of the baby boomers agreed to the statement that â&#x20AC;&#x153;PDAs and mobile phones contribute to

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the decline of proper workplace etiquette”, while merely 47% of generation Y agreed to the same statement (Schonfeld, 2009).

23 33 39

46 42 38 23

Baby boomer

Strongly agree

Gen X

Somewhat agree

Somewhat disagree

Gen Y

Strongly disagree

Figure adopted by author from Schonfeld (2009)

Figure 15 – Baby boomers attitude towards PDA’s and mobiles

Both generations perceive smartphones differently, leading to possible complications on the work floor. In another survey conducted by Accenture, results showed that 27% of the baby boomers preferred mobile handsets, whereas among Gen Y this figure was 51% (Kavur, 2009). Baby boomer and Gen X, consume their information slow, whereas Gen Y is keen on consuming information quickly and easily using their smartphones (Legge, 2010). Each cohort uses smartphones differently based on their needs and mentality.

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5.4 Chapter Summary Different generations with a different mentality and attitude towards work and smartphones are bound to affect the developments. With baby boomers controlling the largest consumer spending and Generation Y keen on spending on smartphones, they appear to be particularly interesting target groups. Veterans and Generation Z are not extensively addressed, as one is considered too old while the other is too young to have a notable impact on smartphone usage within the workplace. However, It could be suggested that generation Z which is currently underage will be able to work better with generation Y as they are both exposed to technology at a very early stage in their lives. Technology nevertheless can influence people in many ways; many academicians have concluded this. A result of this has been various technology acceptance models that discuss how technology is adopted among individuals. These models are discussed in the next chapter.

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Chapter 6 l Technology Acceptance Theories

Literature Review

6 Technology Acceptance Theories We live in an increasingly connected society, with rapid advances in the field of information and communication technology (Office for National Statistics, 2010). Every year consumers and businesses are presented with a vast number of technologies, some of them experience great success, and others fail miserably. Academics have in many ways attempted to measure and analyse why an individual chooses a particular course of action over another (Connon, 2007). This chapter will aim to discuss how technology acceptance frameworks assist in understanding the different aspects that play a role in the adoption of technology. Popular frameworks such as Theory of Reasoned Action [TRA] and Technology Acceptance Model [TAM] will be discussed; with an emphasis on the Unified Theory of Acceptance and Use of Technology [UTAUT].

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6.1 Theory of Reasoned Action TRA states that an individual’s behaviour is determined by intentions. These intentions are influenced by the individual’s attitude toward the behaviour and the subjective norms that exist toward the behaviour. The model has four key elements: ‘Attitude’ relates to how the individual thinks on the topic, ‘Subjective Norms’ refers to how the individual perceives referent other’s opinion on the topic. ‘Intention’ states how the individual intends to act on the situation and ‘Behaviour’ is how the individual actually responds to the situation.

Beliefs Attitude Evaluation Intention Normative beliefs Motivation to comply

Behaviour

Subjective norms

Figure adopted by author from Fishbein and Ajzen (1975)

Figure 16 – Theory of Reasoned Action

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6.2 Technology Acceptance Model TAM is altered version of the TRA model to the field of Information Systems. TAM specifies the elements that can allow improved attitudes on information systems, alongside higher acceptance and usage of the system in an organisation (Davis, 1989). In 2003, Lee et al (2003) stated that TAM was the most influential and commonly employed theory for describing an individual’s acceptance of information systems.

Perceived Usefulness Attitude Perceived Ease of Use

Behavioural Intention

Usage Behaviour

Adapted by author from Davis et al (1989) and Venkatesh et al (2003)

Figure 17 – Technology Acceptance Model

However, an issue with the model is that it assumes that when an individual intends to perform a certain action, that it will be unrestricted to perform the intended action, however in a realistic setting this may not be possible due to organisational, social or personal factors (Elliot and Loebbecke, 2000). Several authors have discussed the importance of external factors as they can considerably affect an individual’s behaviour, therefore TAM was considered limited (Bless et al, 2003; Burger, 2010; Forgas and Williams, 2001). MSc Dissertation l Aberdeen Business School

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6.3 Unified Theory of Acceptance & Use of Technology Researchers felt that TRA and TAM were not suitable to predict user acceptance, as they did not include specific technological and social influences that may alter the user acceptance (King et al, 1994; Taylor and Todd, 1995). Both models do not consider personality related factors, cultural factors and demographic variables that shape the behaviour (Sharma & Kanekar, 2007). Ogden (2003) critically reviewed both models and concluded that these models can be considered pragmatic tools; however, researchers should recognise the essential flaws these models consist. Ogden (2003) claims that the models focus on analytic truths rather synthetic ones and may create and change cognitions and behaviour rather than describing them, therefore being incompetent to be a good theory. Due to the vast amount of critique, several modifications were made to the TAM (TRA) model. The most prominent and comprehensive model is the UTAUT model, which integrates eight different models to exclude theoretical exclusion of specific influences.

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Performance Expectancy Behavioural Intention

Effort Expectancy

Use Behaviour

Social Influence

Facilitating Conditions

Gender

Experience

Age

Voluntariness of Use

Adapted by author from Venkatesh et al (2003)

Figure 18 â&#x20AC;&#x201C;Unified Theory of Acceptance & Use of Technology

According to Taniar (2009) UTAUT provides an in depth view of how the determinants of intention and behaviour evolve over time; and assumes that there are three direct determinants of intention to use [performance expectancy, effort expectancy and social influences], two direct determinants of usage behaviour [intention and facilitating conditions] and four moderators of key relationships [gender, age, experience, voluntariness of use]. Effort expectancy describes the degree of ease associated with using smartphones. It will be interesting to research this as generation Y in contrary to baby boomers has been entangled with technology from

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their birth (Rosen, 2004). Generation Y starts using technology on average from year 3 (Rosen, 2004). Recent survey indicated that mobile devices are considered to contribute to a decline in work etiquette by 66% of the baby boomers, whereas less than half of the Y generation agrees with the same statement (Perez, 2009). It will also be interesting to identify to what extend this trend continues to influence the acceptance of smartphones within the work environment. Social influence is another determinant, which can form an important impact on the acceptance of technology. It consists of subjective norm, social factors, external ties, self-identity, image and power (Nasution, 2007). Elements that have a major impact on the decisions people make and can assist in shaping how people behave (Gilbert et al, 1998). Among the youth, smartphones are considered part of the personâ&#x20AC;&#x2122;s image, in work environment smartphones are primary considered to be tools to perform certain activities, hence the peer perception is different. Due to these key features, the UTAUT model is the most appropriate to apply in the research as it utilises a range of models, covering a range of essential aspects, while removing limitations that were attributed to TRA/TAM.

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6.4 Chapter Summary Technology acceptance models have been widely adopted by authors in the field of information system to research a variety of areas. Models including TRA and TAM have led to several adapted versions of the model including but not limited to ‘Theory of Planned Behaviour’, ‘Technology Acceptance Model (2)’ and ‘Unified Theory of Acceptance and Use of Technology’. UTAUT is utilised in the primary research as it is considered a robust theory covering eight different models. It will serve as the foundation of the questions to be examined during the research.

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Chapter 7 l Summary of Reviewed Literature

Literature Review

7 Summary of Reviewed Literature The literature review focused on four key areas within the research, namely smartphones, the virtual office, multigenerational workforce and frameworks of technology acceptance. During the research, it was discovered that there is no concise description for smartphones and that virtual offices can employ a range of virtualness. Smartphones in the workplace are gaining popularity as they meet the needs of evolving businesses and knowledge workers. Differences among generations were examined, which revealed that each generation has a different attitude towards work and life; shaped by their life experiences. Their attitude towards technology seemed to differ, as one generation had to adopt technology, whereas the other was born into it. Technology acceptance models were discussed in order to understand the aspects that play a role in adoption and use. The UTAUT framework was considered to be most suitable as it did not encompass the limitations of the previous models. In the next sections, the research methodology will be discussed. It will clarify how the different aspects of this research will be examined.

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Chapter 7 l Summary of Reviewed Literature

Methodology

The Era of the

Virtual Office

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Chapter 8 l Research Overview

Methodology

8 Research Overview This chapter will examine the reasoning behind the selection of the research methods. Research methods refer to the systematic, focussed and orderly collection of data for the purpose of obtaining information from them (Ghauri and Gronhaug, 2005). Method refers to the process of collecting data though historical review and analysis, whereas techniques refer to the systematic procedure that dictates how data is gathered and analysed (Ghauri and Gronhaug, 2005). The chapter will furthermore discuss how the undertaken research will meet the aims and objectives of this research. The chapter is comprised of five sections. The first section addresses the research design, philosophy, strategy and approach. The second section provides a detailed description of the secondary research approaches applied and an extensive analysis of the primary research methods. The chapter continues by examining primary research methods and discussing research design. The final section of the chapter highlights the ethical concerns that were taken into account while conducting research.

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Chapter 8 l Research Overview

Methodology

8.1 Research Title The title of the dissertation is: The Era of the Virtual Office An investigation into the rise of smartphones and its effects on Baby Boomers, Gen X and Gen Y The title highlights the development towards an office that is available from anywhere and anytime. Smartphones play the role of enabling this trend among the three core generations currently active in the workforce. 8.2 Research Aim The aim of this study is To identify the effects of smartphones on Baby Boomers, Generation X and Generation Y in the changing work environment. The aim will be achieved by completing six objectives.

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8.3 Research Objectives  To appraise the literature addressing the rapid growth of smartphones and the underlying causes for this increased adoption.  To comprehend how the work environment has developed over time and its effect on the employees.  To develop an understanding of contemporary generations and their approach towards work and social life.  To critically analyse the adoption by Baby Boomers, Generation X and Generation Y of smartphones in general and in the workplace.  To examine and discuss whether a significant technology gap is existent among Baby Boomers, Generation X and Generation Y in the context of smartphones.  To provide realistic conclusions based on the findings and recommend areas for further research.

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Chapter 9 l The research

Methodology

9 The research 9.1 Research Philosophy Research Philosophy is the concept that describes the development of knowledge and the nature of that knowledge (Saunders et al, 2009). There are two main types of research philosophies [Figure 19], with each of them corresponding to different assumptions (Saunders et al, 2009). The adoption of a particular research philosophy defines the authorâ&#x20AC;&#x2122;s views on the research and provides a foundation for the research strategy.

Philosophy Epistemology Ontology

Description Concerns what is accepted as knowledge in a field Concerned with the nature of reality

Developed by author utilising Saunders et al, 2009

Figure 19 â&#x20AC;&#x201C; Research philosophies

Epistemological assumptions are made by understanding the process and experience. The view considers the most suitable way of researching the nature of the world (Easterby-Smith et al, 2008). The view furthermore considers what knowledge is and the sources and limits of knowledge (Eriksson and Kovalainen, 2008). Ontology assumes that there are several realities, each socially constructed by individuals. MSc Dissertation l Aberdeen Business School

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It describes a view, which is either claimed or assumed by the author, which in reality may or may not exist (Flowers, 2009). Social science studies dealing with culture, power and control are examples in which the view of the author may exist in reality or is only experienced by the author (Hatch and Cunliffe, 2006). The epistemological philosophy was considered most suitable for the current research. The research aims to study the acceptance of smartphones among different generations, using accepted knowledge in the field and by being objective while conducting the research. The focus of the research was further enhanced by adopting a positivist orientation [Figure 20], which argues that only observable phenomena can provide credible data (Saunders et al, 2009). Orientation Description Positivist

Interpretive

Data Collection

Only observable phenomena can provide credible data, facts. Focus on causality and law like generalisations Subjective meanings and social phenomena. Focus upon details of situations.

Highly structured, large samples, measurement Small samples, indepth research

Developed by author utilising Saunders et al, 2009

Figure 20 â&#x20AC;&#x201C; Research Orientation with Epistemological philosophy

The

data

collection

method

selected

conduct

the

epistemological/positivist research was quantitative research. This would allow the research to access a large sample to generate data.

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Chapter 9 l The research

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9.2 Research Approach Research has two broad methods of reasoning which are known as the deductive and inductive approach. Deductive approach describes the process whereby a theory is tested by conducting research and the conclusions derive through logical reasoning (Ghauri and Gronhaug 2005; Saunders et al, 2009). An inductive approach reverses this approach. The process is initiated by collecting data and then continues by developing a theory as a result of the analysis of the data (Saunders et al, 2009). Approach Deductive Inductive

Description The logical process of deriving a conclusion from a known premise or something known as true The systematic process of establishing a general proposition on the basis of observation or particular facts

Developed by author utilising Ghauri and Gronhaug (2005)

Figure 21 â&#x20AC;&#x201C; Research Approach

The inductive and deductive approaches are not exclusive (Ghauri and Gronhaug, 2005; Gray, 2008), however the author found the deductive approach most appropriate. This approached allowed the author to research the field (literature review), test the knowledge (primary research) and derive conclusions by using the data (analysis and discussion). MSc Dissertation l Aberdeen Business School

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Methodology

9.3 Research Design The research design is the general strategy applied to answer how the research questions will be addressed (Saunders et al, 2009). It establishes the blueprint for the collection, measurement and analysis of the data and supports the researcher in assigning the limited resources by presenting essential choices (Phillips, 1971). The importance of research design is attributed to its role as a critical link between primary and secondary data (Nachmias and Nachmias, 2008). The research design states the structure of the research problem and the plan of investigation (Kerlinger, 1986). There are three types of researches; exploratory, descriptive and explanatory. The type of research is selected depending on the circumstances, nature of the problem and the audience it is written for.

Exploratory Research

Seek new insights in the smartphone industry and identify its impact on work place environments

Descriptive Research

Is to portray accurate profile of smartphones, the new work place and differences between generations of people

Explanatory Research

Is used to study the development of smartphones in order to explain the relationship between the increased use and its relation to work place.

Produced by author using Robson (2002) and Saunders et al (2009)

Figure 22 â&#x20AC;&#x201C; Types of Research

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Exploratory researches are most valuable in examining current situations; creating new insights and assessing developments in a different context (Robson, 2002). An exploratory research can be very useful when the nature of the problem is not clear of the field of study is novel (Cooper and Schindler, 2003; Gray, 2009; Saunders et al, 2009). There are three key methods of conducting an exploratory research, namely: performing a secondary research, interviewing experts in the field or conducting focus groups (Saunders et al, 2009). This approach is distinguished by its flexibility (Ghauri and Gronhaug, 2005). Exploratory research was conducted at the initial phase [Research Proposal] in order to develop broader knowledge of the topic. The method applied was by searching the literature, which allowed gaining understanding of what existing research provides and what elements the author could research in order to contribute to the existing knowledge. Descriptive approach is used to portray an accurate profile of people, events and situations (Gray, 2009; Robson, 2002). When applying this type of research it is important that the problem that is being addressed is clear prior to the research (Robson, 2002). The approach was particularly useful after the research proposal was submitted and approved. There was an understanding of the research problem which

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allowed the study of the areas involved. The approach resulted in the literature review and the methodology section. A weakness of descriptive approach is that it is unable to explain why an event has occurred (Blumberg et al, 2008), therefore the explanatory research method was applied. Explanatory research sets out to explain and account for the descriptive information (Grey, 2009). Information derived during descriptive approach was used in this phase to provide evidence to previous research and test the research problem. This information is primarily to be found in the dissertation under ‘Findings’ and ‘Analysis’ chapters. The strength of each type of research was used in different stages of the dissertation [Figure 23]. It allowed the research to have a different focus at each stage, resulting in a logical flow.

Explanatory Exploratory Descriptive

Proposal

Dissertation Figure produced by author

Figure 23 – Applied research approaches

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9.4 Research Strategy Adopting an appropriate research strategy was essential, as it would determine to what extend the author is able to answer the research objectives (Saunders et al, 2009). The survey strategy was considered most appropriate, as it is commonly associated with the deductive approach (Saunders et al, 2009). The survey strategy allowed the author to collect quantitative data, which was used to suggest possible relationships between variables and to analyse these relationships (Saunders et al, 2009).

The survey

strategy provided more control over the research process and offered the possibility to collect data that could be representative for the whole population (Saunders et al, 2009). Drawback of applying the survey strategy was that in contrast to other strategies, the data is unlikely to be as wide ranging (Saunders et al, 2009).

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Chapter 10 l Secondary Research

Methodology

10 Secondary Research Secondary research was conducted in order to review existing literature. Exploiting secondary data was very useful as it is widely available and it consists of highly relevant data (Ghauri and Gronhaug, 2005). Secondary data is a form of research, where the data is collected and processed previously for a different purpose (Babbie, 2009). The information was often provided as raw data or published summaries (Saunders et al, 2009). 10.1 Advantage of Secondary research The major advantage of using secondary data was that it allowed savings in time and money (Ghauri and Gronhaug, 2005). The existing research was sufficiently extensive and removed the need for the author to create relevant data. The second advantage of using secondary data was that it suggested suitable methods to tackle the research problem (Ghauri and Gronhaug, 2005). Reviewing previous academic research allowed the author to determine the most appropriate method for primary data collection.

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10.2 Disadvantages of Secondary data There are certain drawbacks to using secondary data. The secondary data was collected for a different purpose than the one described in this study; therefore, the data in some cases did not fit the research problem (Ghauri and Gronhaug, 2005). Another issue with collecting secondary data was the accuracy of the data (Ghauri and Gronhaug, 2005). During the research, the author aimed to collect data from credible sources to avoid inaccuracies. Other measures were taken when a doubt was raised; these are described in the next section [paragraph 10.3]. 10.3 Application of Secondary Research The author in the process of collecting relevant data consulted a wide range of sources. Sources of secondary data were: (online) books, (academic) journals, theses, statistics, websites, reports and articles. The author was advised by the supervisor to ensure that the secondary data was exhausted before he proceeded with collecting primary data (Connon, 2010), an advice that is repeated by many other academicians (Churchill, 1999; Ghauri and Gronhaug, 2005; Green, 2000; Stewart and Kamins, 1992). Therefore, the author spent significant time on reviewing secondary data to be certain that all relevant information was reviewed and assessed. MSc Dissertation l Aberdeen Business School

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The use of sources varied depending on the area that was being addressed. Technology acceptance theories were researched in more detail in academic journals; which served as a primary source for information, whereas the author had to rely on technology related websites to find information on smartphones. This was because research done by academicians in the field of smartphones does not cover all aspects. Nevertheless, a number of relevant journals were found that provided useful information. The authorâ&#x20AC;&#x2122;s intention was to use credible sources whenever possible. Journals were preferred source for data, as the information is peer reviewed. In the case that the information was not available through journals and other sources had to be used; the author often performed a background check to determine whether the authors were credible sources. This process was repeated as often as was found necessary in order to avoid inconsistencies in the literature review.

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Chapter 11 l Primary Research

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11 Primary Research Primary data was useful when secondary data was unable to answer the research questions (Ghauri and Gronhaug, 2005). Primary data is data, which was collected by the researcher himself (Cameron, 2007). Conducting primary research allowed the author to collect data tailored for the current study. Mechanical Observations Human Primary Data

Mail

Experiment

Communication s

Interviews

Phone/mail

Surveys

Personal

Figure produced by author utilising Ghauri and Gronhaug (2005)

Figure 24 â&#x20AC;&#x201C; Sources of primary data

There are several methods to collect primary data [Figure 24], which normally include experiments, surveys and interviews (Ghauri and Gronhaug, 2005). Conducting a survey was found to be the most suitable method to collect primary data for this research. The following paragraphs will provide a rationale for the selected method and explain how it was put into practise.

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11.1 Advantage of Primary data The main advantage of collecting primary data was that the information was more consistent with current research (Ghauri and Gronhaug, 2005). By conducting primary research, the author was able to gather information that was previously not available. 11.2 Disadvantages of Primary data There are a few disadvantages related to collecting primary data. The first issue is that the process can be time consuming and can cost a lot (Ghauri and Gronhaug, 2005). Secondly, it can be difficult to access people willing to partake in research and finally, if the researcher is not careful in utilising the proper tools, procedures and method of analysis; he can threaten the reliability and applicability of the research. Each of these issues was taken into consideration by the author when primary research was being designed. These issues were addressed as sufficiently as possible and further explanation is provided in the next chapters.

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11.3 Qualitative vs. Quantitative Primary research methods are categorised between two key methods: qualitative methods and quantitative methods (Mingers, 2003). The main difference between them is not the quality of the method but the procedure (Ghauri and Gronhaug, 2005). According to Punch (1998) quantitative research is empirical research where the data are in the form of numbers, whereas qualitative research is empirical research where the data are not in the form of numbers. More recently quantitative research is described as research whereby a concept or a phenomenon is being explored using a mixture of rational, exploration and intuition (Creswell, 2009; Ghauri and Gronhaug, 2005). The data in quantitative methods is usually related to collecting and analysing data in several forms, mainly non-numeric (Blaxter et al, 2006). Qualitative research is common in social and behavioural sciences and among practitioners who desire to understand human behaviour and functions (Ghauri and Gronhaug, 2005). Quantitative research is however more valuable when studying the factors that affect a large group of individuals (Creswell, 2009). The focus of each method is different and therefore they have different benefits and drawbacks [Figure 25]

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Qualitative Methods

Methodology

Emphasis on understanding Focus on understanding from respondents view Interpretation and rational approach Observations and measurements in natural settings Explorative orientation Process oriented Holistic Perspective

Quantitative Methods

Emphasis on testing and verification Focus on facts and/or reasons for social events Controlled measurement Objective Focus on hypothesis testing Result oriented Generalization by population membership

Figure produced by author utilising Ghauri and Gronhaug (2005)

Figure 25 â&#x20AC;&#x201C; Qualitative vs. Quantitative methods

There have been several dialogues within social sciences regarding the relative advantages of quantitative and qualitative strategies for research (Blaxter et al, 2006). Some researchers find the two methods exclusive, while others are willing to use a combination of methods (Creswell, 2009; Blaxter et al, 2006; Ghauri and Gronhaug, 2005). The quantitative research method was found to be most appropriate for this research. Rationale for selecting this method is discussed in chapter 11.4.

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11.4 Rationale for Selected Method The actual primary research method was different to what had been originally described by the author in the proposal. The initial proposal was to use a combination of qualitative and quantitative methods in order to collect primary data [Figure 26]. Interviews among professionals would be conducted to understand their views of smartphones in the workplace and employees of a range of companies would be requested to fill in a survey to provide their view on the use of smartphones in the workplace.

Qualitative Method Interviews

Questionnaire Quantitative Method

Figure developed by author

Figure 26 â&#x20AC;&#x201C; Proposed Primary Research method

This approach was considered unsuitable after initial research was conducted and the research aim was altered to research how different generations adopted the smartphones and its effects on the workplace.

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Methodology

The author was recommended by his supervisor to analyse research methodologies in previous academic research in the field and focus the approach on a single method (Connon, 2010). A review of existing research formed a firm foundation for advancing knowledge; it facilitated theory development and uncovered areas where research was required (Webster and Watson, 2002). Secondary research was conducted in the field of smartphones and generations, which were identified as key subjects in current research. The UTUAT model has been used to examine smartphones and much of the previous research in this area has been conducted using quantitative research (Connon, 2007; Davis, 1989; Venkatesh et al, 2003). Furthermore, many other studies that have been conducted in the field of technology have used quantitative methods often using similar methods (Kim, 2008; Pagani, 2004; Park et al存2007; Venkatesh et al, 2002; Wang et al, 2006; Wu and Wang, 2005). Studies that have researched generational differences likewise used quantitative methods (Dries et al, 2008; Lamm and Meeks, 2009; Smola and Sutton, 2002; Yang and Jolly, 2008). A wide range of significant research has been done in the key fields using quantitative methods; therefore, it provided a solid rationale for the author to proceed with a quantitative method

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Chapter 12 l Survey

Methodology

12 Survey Survey refers to the method of data collection that utilises questionnaires or interview techniq ues (Ghauri and Gronhaug, 2005). Previous studies have used questionnaires to conduct research in similar fields and it was therefore considered the most consistent method to apply. Questionnaires present a set of standardised questions to each respondent, which provided an efficient way to collect responses from a large sample (Saunders et al, 2009). Saunders et al (2009) describe a variety of questionnaires [Figure 27].

Delivery and Collection questionnaires Internet mediated questionnaires Self-administered Postal questionnaires Questionnaire Telephone questionnaire Interviewer administered

Structured interview

Figure adopted by author from Saunders et al (2009: p363 â&#x20AC;&#x201C; Fig. 11.1) Figure 27 â&#x20AC;&#x201C; Types of questionnaires

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Chapter 12 l Survey

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12.1 Online Questionnaire The author selected the self-administered type of questionnaire using the internet as an intermediary. Key motives for selecting this approach were the low cost, the global reach and the automated data collection. 12.1.1

Advantages of Online Questionnaire

A range of advantages are associated with the use of online questionnaires. Using an online questionnaires was cheaper in comparison to other research methods, as the cost of printing and distributing was non-existent (Sue and Ritter, 2007). It allowed convenient processing of data, as responses could be loaded into a data analysis package (Fink, 2009). It provided the author with the ability to create skip patterns that were not visible to the respondent (Fink, 2009). Online technologies provided by Survey Gizmo and Facebook allowed easier follow up and the ability to send reminders (Fink, 2009). 12.1.2

Disadvantages of Online Questionnaire

Literature also describes a range of disadvantages. Commonly referred issue is that respondents require an internet access (Fink, 2009), however the author considered this argument irrelevant as nearly two billion people around the world have access to the internet according to the latest figures (Internet World Stats, 2010). The dissemination would MSc Dissertation l Aberdeen Business School

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furthermore primarily take place through Facebook, which has roughly 500 million users (Facebook, 2010) and the RGU alumnus, which contains a database with e-mail addresses, suggesting that the users have access to the internet. Another issue could be that questionnaires may not look the same in different web browsers and different monitor (Fink, 2009). This was overcome by using a reliable online service provider, which ensures that the quality of the questionnaire was maintained. Finally, it is suggested the researcher is unable to exercise quality control in respect to answering all questions and the quality of the answers (Fowler, 2009). The author limited this issue by extensively pre-testing the questionnaire, to ensure the highest level of quality can be achieved. 12.1.3

Service Provider

The author used the service provided by Survey Gizmo to conduct the questionnaire. Their offer was superior to their competitor as it allowed students to use their enterprise accounts free of charge. Their service allowed the author to avoid any hosting charges, disseminate the questionnaire, collect and monitor results and export the collected data.

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Free

10 questions per survey

Unlimited questions

100 responses per survey

Unlimited responses

15 types of questions

20+ types of questions

Realtime results

No skip logics

Full logic support

No enhanced security

Full security

Export data: not available

Export data: fully available

Limited templates

Customisable templates

Figure developed by author utilising Survey Gizmo (2010) and Survey Monkey (2010) Figure 28 â&#x20AC;&#x201C; Questionnaire service providers

The alternative available to the author was Survey Monkey, which has a limited account available for use without any cost incurring. However for a package with more options the author would have to pay ÂŁ20,- per month and would still be receiving less options than Survey Gizmo. A comparison was made between the two free packages made available by the two companies [Figure

28].

The author also found it very

convincing that Microsoft and HP, the leading providers of software and hardware, were using Survey Gizmo. Hence, the most sensible choice was to proceed with Survey Gizmo.

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12.2 Design The questionnaire was designed in a highly dynamic manner. Three key logics were built into the questionnaire to collect relevant data from each respondent. The first logic was related to the generation a respondent was born into. Respondents that would indicate to be born into ‘Generation Z’ were leaded to a different page to collect data on whether they possessed smartphones, after which the questionnaire was tagged as completed. This was done because this generation was considered to be too young (oldest individuals in this generation are 11 year old) to partake. However, the author considered that it would interesting to examine how many individuals of the next generation workforce already possessed a smartphone. The second logic was related to whether people were a ‘student’ or ‘(self/un) employed/ retired’. The first group was relayed to a page were academic information was collected, whereas the latter group was directed to a page were professional information was collected. The final logic was related to whether the respondent possessed a smartphone or not. The answer resulted in two different structures.

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The author developed a visual aid to portray the structure of the questionnaire, which is provided in Figure 29. The figure displays the logics described previously. A preview of the actual questionnaire can be found in Appendix 1.

Demographics

- Generation Z

Smartphone Info

- Student

- (Self) Employed - Retired

Academic Info

Business Info

Smartphone info

End of Survey

Smartphone: Yes

Smartphone: No

UTAUT Q's

Collect info

End of Survey

Figure developed by author Figure 29 â&#x20AC;&#x201C; Structure of the questionnaire

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Chapter 12 l Survey

12.2.1

Methodology

Demographics

The first section of the questionnaire focused on collecting demographic information. Five questions were asked in the section that addressed the gender, age, region of origin, education and the position. Gender and age provided general demographic information, while also forming part of the UTAUT framework (Connon, 2007). By requesting respondents to select to which generation they belonged measured age. Five generational options were presented, which were derived from the literature (Heffernan, 2006; Leitschuh, 2007). Other questions allowed further segmentation of the respondents. 12.2.2

Academic vs. Professional

The second section focussed on collecting information on the education/profession of the respondents. This would allow the research to study whether significant differences were perceived among industries. 12.2.3

Smartphones

In this section the respondents were asked whether they possessed a smartphone. Individuals responding with a ‘yes’ were directed to UTAUT based questions, whereas individuals responding with a ‘no’ were asked certain questions after which the questionnaire was completed.

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Chapter 12 l Survey

12.2.4

Methodology

UTAUT Questions

The final section addressed the eight determinants and moderators from the UTAUT model. The questions were presented using a five point Likert-scale ranging from ‘Strongly disagree’ to ‘Strongly agree’. The questions were based on previous academic research in the field and were adapted to meet the needs of the current research (Al-Qeisi, 2009; Connon, 2007; Kim, 2008; Wang et al, 2006; Wu and Wang, 2005). This approach was selected on recommendation provided by the supervisor (Connon, 2010) and is supported by a wide range of authors (Allan and Skinner, 1991; Bui, 2009; Burdon and Steane, 2004; Paltridge and Starfield, 2004).The advantage of adopting this approach was that it allowed the author to develop questions that were academically rigorous. 12.2.5

Feedback & Closure

The final section allowed the respondents to provide any comments they had regarding the questionnaire. They were also offered to submit their e-mail addresses, which would be used to publish results once available.

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12.3 Pilot Evaluating the questionnaire is referred to as pilot testing (de Vaus, 2002). Pilot testing can eliminate severe potential sources of difficulties, such as poorly worded questions (Fink, 2009). According to Fowler (2009), the best method to pre-test a self-administered computer based questionnaire is by allowing respondents to respond through their individual laptops and discuss the outcomes in a group. The author requested four people to fill in the questionnaire, noting the time it took them to complete, difficulties in understanding the questions and any other complications they may encounter. This was done after the supervisor had previewed the survey and no significant changes were required. Pretesting provided the author with useful feedback, which was then integrated into the final survey. The appearance and the readability were particularly appealing to the respondents. As a result of the feedback the following changes were made: a progress bar was added, question relating to age was revised, minor changes to the use of language and â&#x20AC;&#x2DC;use behaviourâ&#x20AC;&#x2122; questions were brought to the front due to their simplicity, which is supported by Ghauri and Gronhaug (2005) as it has a positive impact on the respondent.

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After the pilot testing with respondents, the author used diagnostics tool provided by Survey Gizmo (2010) to further improve the questionnaire. The tool compares the questionnaire with hundreds of other questionnaires in order to examine three areas, namely complexity, fatigue Score and accessibility. The questionnaire passed all three tests. Finally, the author generated test data using the built in tool. The software generated 100 responses to test the questionnaire, which exposed a flaw in the logic. After this test, the questionnaire was considered ready to be disseminated. 12.4 Sampling & Distribution Two methods were applied to sample and distribute the questionnaire. The first method was using the authorâ&#x20AC;&#x2122;s online social network and the second method was the universityâ&#x20AC;&#x2122;s alumni. 12.4.1

Online Social Network

The authorâ&#x20AC;&#x2122;s personal network consists of nearly 500 people dispersed among several social networking sites. A non-probability sampling technique was found to be most appropriate. Ghauri and Gronhaug (2005) describe the convenience sampling method as the method in

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which individuals are selected because they are convenient to access. Roughly, 400 people were invited by the author to partake in the questionnaire and it was considered extremely important to attract more respondents by generating ‘word of mouth’ [WOM] among the author’s network. The concept of generating WOM is widely discussed in the field of marketing, where it is more commonly referred to as Viral Marketing (Chaffey, 2006; Goldsmith, 2002; Helm, 2000; Mullen and Daniels, 2008; Silverman, 2001). A viral effort is defined as something that resonates so effectively with readers that they share it with many others quickly (Mullen and Daniels, 2008). To create a viral aspect to the survey respondents were repeatedly encouraged to invite their contacts. An ‘event’ was set-up to invite contacts on Facebook and Hyves, two main personal social networks of the author [Figure 30].

Event set-up by author Figure 30 – Facebook event

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Facebook proved to be most effective whereby the author invited 300 contacts to partake in the questionnaire and the network of the author invited 741 more contacts. Respondents were encouraged further to invite their contacts, by providing three graphical linking to the most popular social networking sites [Facebook, Twitter and Hyves in NL].

Graphics developed by author Figure 31 â&#x20AC;&#x201C; Link-backs Social Networks

The graphical link-backs proved very popular as more than 200 respondents made use of them [Figure 31].

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Chapter 12 l Survey

12.4.2

Methodology

RGU Alumni

The RGU alumni office was contacted to assist in dissemination of the questionnaire. The RGU alumnus is a worldwide community with over 50.000 members (RGU Alumni, 2010). Member of the alumni indicated that it would not be possible to contact all individuals and suggested that a simple random sampling method was applied. The criterion for selection was age. A thousand individuals were selected from each of the three generations, namely the Baby Boomers, Generation X and Generation Y. In total, 3000 questionnaires were sent by the alumni office to its members. 12.4.3

Response rate

It is often the case that it is unclear what response rate should be achieved in a survey (Babbie, 2009), however it is not possible to calculate the response rates for internet based questionnaires placed on a website which are freely accessible (de Vaus, 2002). Nevertheless, overall response rate is one guide to the representativeness of the sample respondents. Researchers have discussed several methods that can increase the response rate.

New web formats for instance offer appealing

possibilities (Cook et al, 2000). Developing an online questionnaire

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permitted the author to create a more appealing and innovative interface [Figure

32],

which would otherwise not be possible with the

limited options of paper surveys or telephone interviews (Schillewaert et al, 1998). The attractive interface options meant that colour, different fonts, graphics and variety of appealing response formats allowed the questionnaire to be more inviting and easy to read (de Vaus, 2002).

Developed by author Figure 32 â&#x20AC;&#x201C; Extract from questionnaire

Another method of increasing response rates is by following up nonrespondents (de Vaus, 2002). This was not possible with the dissemination among the RGU alumnus, because the author had no MSc Dissertation l Aberdeen Business School

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access to the information. However, the Facebook event provided the author with limited information regarding to respondents and nonrespondents. Invitees to the event were requested to indicate whether they would be ‘attending’ (filling in the questionnaire) or ‘not attending’ (not filling in the questionnaire) the ‘event’.

Adopted by author from Facebook (2010) Figure 33 – Facebook Event: RSVP

Facebook also provided a list called ‘awaiting reply’, which consisted of people that were invited, but had not responded. This provided the author with a tool to send out a reminder to these individuals to encourage them to fill out the questionnaire. An increase in responses was experienced within two days after the follow-up. Incentives were not used in this research, although they were considered as an option in the early phase of the primary research. As the questionnaire would reach individuals in a variety of countries, feasible and attractive incentives were difficult to determine. Furthermore, research conducted by Cook et al (2000) into the use of web surveys indicated that using incentives was associated with similar MSc Dissertation l Aberdeen Business School

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and lower response rates. They concluded that this may be related to researchers conducting disproportionally long or dull surveys and therefore recognised the need for providing substantial rewards for survey completions (Cook et al, 2000). Both of the issues highlighted by Cook et al (2002) were not found to be applicable to the current research, as the length of the questionnaire was within acceptable norms and smartphones are very popular (Wilson, 2010) It was important to use simple and concise language while conducting the research (Ghauri and Gronhaug, 2005). This would limit the respondents that would feel intimidated by the research. Throughout the communication with respondents, the aim was to avoid jargon and promote non-academic use of language; allowing the respondents to feel comfortable while answering the questions.

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12.5 Data Analysis Data analysis is the process in which raw data is systematically organised in order the extract information. Two most popular methods for digital data analysis are SPSS and Stata. SPSS is promoted as the worldâ&#x20AC;&#x2122;s leading statistical software for business, government, research and academic organisations (SPSS Inc., 2010). Stata does not make such bold statements, however does offer a complete statistical suite, similar to SPSS (Stata, 2010). After careful reviewal of both suites it was determined that, both suites were excessively complex for the purpose of this research. The analysis was primarily conducted using cross tabulation technique, which is a technical term to describe a method to analyse bivariate or multivariate categorical data (Acock, 2008; Eye and Niedermeier, 1999; Wrenn et al, 2006). The technique produces similar information as Chisquare and Cramerâ&#x20AC;&#x2122;s V test (Morgan et al, 2007). The information produced by this technique would produce sufficient data for analysis and discussion. The author will furthermore make use of Microsoft Excel to perform less complex data analysis and to develop charts. Percentages have been rounded to full figures; this measure was taken in order to increase readability and improve accessibility (Thody, 2006). MSc Dissertation l Aberdeen Business School

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Chapter 13 l Ethical Considerations

Methodology

13 Ethical Considerations Ethics are moral principles and values that are bound to impact the way the researcher conducts its activities (Ghauri and Gronhaug, 2005). The aim of ethics in research is to ensure no harm is caused to participants and no one suffers from adverse consequences derived from the research activities (Cooper and Schindler, 2003; Creswell, 2009). â&#x20AC;&#x2DC;Research Ethics Policy is established by the Robert Gordon University of which the aim is to establish and promote good ethical practise in the conduct of academic research (Robert Gordon University, 2010). The author aimed to ensure good understanding of the policies in order to avoid any misconduct. A Student Project Ethical Review [SPER] form was submitted to the School Ethical Review Panel [SERP] in order to comply with Aberdeen Business School and Robert Gordon Universityâ&#x20AC;&#x2122;s ethical policies. The aim of SPER and SERP is to avoid any ethical misconduct from taking place. The following subchapters further highlight the issues that were addressed to conform to a sound ethical research.

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Methodology

13.1 Voluntary participation The principle is that people are not required to participate in a survey (de Vaus, 2002). In order to communicate this with the participants; the researcher added the following text to the introduction page of the survey: â&#x20AC;&#x153;Please note that your participation in this survey will be greatly valued, however your participation is not compulsory and you may stop at any point during the surveyâ&#x20AC;? (Altered by author, original by de Vaus, 2002: p60)

This informed the participants that they have the right to abandon the survey at any given time. 13.2 Informed consent Informed consent within a survey describes the requirement of informing the participant about a range of matters related to the research (Creswell, 2009; de Vaus, 2002; Gaiser and Schreiner, 2009). However de Vaus (2002) argues that simply supplying more information may not be better than providing a brief description. He suggest that this problem can be overcome by providing basic information and to offer to answer further questions (de Vaus, 2002).

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The following information was added to the introduction page to ensure that participants were informed about the research: â&#x20AC;&#x153;This survey is part of my dissertation which I am writing to complete my Master's degree in International Business. Smartphones have become increasingly popular and most of us have heard of Blackberry's, iPhones and others. In my research, I am investigating how smartphones are being used among different generations of people and how this is affecting the workplace. On the following pages, you will be asked to share your thoughts on the use of smartphones. The survey should not take more than 10 minutes. In case you have questions related to this survey, please do not hesitate to contact me. You may also wish to use the feedback form at the end of the survey to share your commentsâ&#x20AC;? Along with the text above, the participants were provided with contact details of the author, which enabled them to seek contact with the author in case they had any further queries. 13.3 Anonymity & Confidentiality Participants can be harmed in survey research when the confidentiality of responses is not honoured (de Vaus, 2002). One issue to anticipate about confidentiality is that some participants may not want to have their identity to be confidential, allowing them to retain ownership of MSc Dissertation l Aberdeen Business School

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their voice (Creswell, 2009). Current research did not require personal data to be collected as it would serve no purpose during analysis and discussion. Participants were therefore not offered an option to ‘retain their voice’ and all data was collected anonymously. The survey was disseminated primarily through the internet whereby no data (i.e. name and address) was collected that could harm confidentiality. The participants were informed of this on the introduction page using the following text: “The survey is designed not to collect any information that would allow the data to be linked to an individual. The survey is anonymous and will not collect geo-location data or IP addresses” Geo-location and IP address data collection was disabled in the online survey system. This was considered to be the most effective way to safeguard the process. 13.4 Authenticity of Data Issues of accuracy can be raised when the researcher is unable to check the understanding of the respondents at first hand (Blaxter et al, 2006). This issue was addressed by piloting the questionnaire extensively in advance in order to limit the space for misinterpretation.

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Chapter 13 l Ethical Considerations

Findings

The Era of the

Virtual Office

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Chapter 14 l Overview

Findings

14 Overview â&#x20AC;&#x153;Data is not information, Information is not knowledge, Knowledge is not understanding, Understanding is not wisdomâ&#x20AC;? Stoll and Schubert (2006: p. 112) A significant amount of data was collected through utilising a questionnaire. The data is presented in manner that it becomes information that can be easily interpreted. In total, 478 responses were received of which 53 were omitted from the results, as they were considered inadequate for analysis. This section presents data collected from 425 respondents. The section is divided in four chapters. The first chapter presents demographic

information,

the

second

chapter

addresses

the

backgrounds of students and professionals, the third chapter presents findings on the use of smartphones and the final chapter addresses the UTAUT construct. Unless stated otherwise, all figures in this section were developed by the author.

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Chapter 15 l Demographics

Findings

15 Demographics Demographical information was collected at the initial stage of the questionnaire as it assists in understanding the size, composition and distribution of the respondents (Lazer, 1994). 15.1 Gender Gender information is outlined as one of the moderators in the UTAUT model. The questionnaire was filled in by 229 males (54%) and 196 females (46%) [Figure 34]. 60% 50% 40% 30% 20% 10% 0% Male

Female

Figure 34 â&#x20AC;&#x201C; Gender information

15.2 Age Age is the second moderator in the UTAUT model. In this research, respondents were requested to select the generation they belonged to [Figure 35]. This will allow the research to identify generation gaps in the adoption of smartphones. The mode is represented by Gen Y with 221

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Chapter 15 l Demographics

Findings

respondents (52%), followed by Gen X with 103 respondents (24%) and Boomers with 97 respondents (23%). The veterans and Gen Z were significantly underrepresented with both categories only attracting two respondents (0.5%). The latter two generations will not be included in further analysis as the sample is unusable. 60%

1.00%

50% 40% 30%

0.50%

20% 10% 0%

0.00% Gen Y

Gen X

Boomers

Gen Z

Veterans

Figure 35 â&#x20AC;&#x201C; Generations

15.3 Region of Origin The majority of respondents indicated to be European (n= 316, 75%), while the largest group among the minority were Asians (n=55, 13%). None of the other categories exceeded 5% of all responses [Figure 36]. 80%

Other

60%

South American

40%

North American

Middle Eastern

20%

African

13%

Asian

0% European

10%

15%

Figure 36 â&#x20AC;&#x201C; Region of Origin MSc Dissertation l Aberdeen Business School

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Chapter 15 l Demographics

Findings

15.4 Education The highest frequency of respondents graduated from university, specifically, 199 respondents (47%) had completed an undergraduate degree and 141 respondents (33%) had completed a postgraduate degree. The remaining 85 respondents (21%) had a college degree or less [Figure 37]. 50%

47% 3%

Primary School

40%

33%

30%

College, No degree

20%

High School

10%

College

0% UG

10%

Figure 37 â&#x20AC;&#x201C; Education

15.5 Position The respondents were mainly (self) Employed (n=296). Followed by 108 students, 18 unemployed and 3 retired.

Retired

Unemployed

Student

25%

(Self) Employed

70% 0%

10%

20%

30%

40%

50%

60%

70%

80%

Figure 38 â&#x20AC;&#x201C; Position MSc Dissertation l Aberdeen Business School

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Chapter 16 l Segmentation

Findings

16 Segmentation Due to the use of convenience sampling method, it was considered useful to gather additional information on the respondent. This information would enable the author to identify to what degree the research may limit or extent the usability of the results. The primary segmentation was between students and professionals, whereas Gen Z was relayed within the questionnaire. 16.1 Generation Z Generation Z was not considered crucial to this research. Limited attempt to attract this generation to respond to the survey resulted in two responses from generation Z. This did not have a significant impact on the research as individuals from this generation were presented with only one follow up question: “Do you own a smartphone?” The recorded result was one individual responded with ‘yes’, while the other responded with ‘no’, Due to the size of the sample this information was considered insufficient for any further usage.

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16.2 Students Students formed 25% of the total respondents; of which 50% are attending a ‘Business, Management or Accounting’ course [Figure 39]. Students attending ‘Healthcare’ represented the second largest group with 10 respondents.

Information, Communication, Media Achitecture & Construction

Computing

Law

Art & Design

5% 7%

Science Engineering

Social work and Social sciences

9% 10%

Healthcare

50%

Business, Management, Accounting 0%

10%

20%

30%

40%

50%

60%

Figure 39 – Student: Course

The follow up question requested the students to indicate the industry they wish to be employed in. Marketing/Market Research/PR recorded the highest frequency (n=23). Figure 40 displays the top four industries and Appendix 2 provides a full overview.

12%

Finance / Banking / Insurance / Legal Consulting / Professional Services

13%

Healthcare / Medical

13% 22%

Marketing / Market Research / Public… 0%

10%

15%

20%

25%

Figure 40 – Student: Preferred Industry MSc Dissertation l Aberdeen Business School

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Chapter 16 l Segmentation

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16.3 Professionals Professionals were requested to indicate in which industry they were employed, given the option to select from 21 different industries, which was considered comprehensive. Unexpectedly, 43 individuals (14%) indicated to be employed working in an ‘other’ industry. This could relate that individuals may perceive the industry differently than presented.

Leisure / Hotel / Entertainment / Recreation

Education Healthcare / Medical

Consulting / Professional Services

8% 9%

Finance / Banking / Insurance / Legal

10%

IT / Telecommunications

10%

Construction / Engineering

14%

Other 0%

10%

15%

Figure 41 – Professionals: Industry

Figure 41 illustrates the industries that attained more than 5% of the responses, a full overview is provided in Appendix 3.

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In the next question, respondents were probed to indicate on which level they were operating in their respective industries. The majority of the respondents indicated to be a professional (n=135). Demographics had already revealed that only 4% of the respondents were unemployed, therefore the result of this group was consistent. In the distribution, ‘managers’ represented the second largest group (n=81). Admin and support staff accounted for 14% (n=44), followed by directors (10%, n=30) and finally 4% indicated to be a top level executive (n=12).

N/A - Unemployed/Retired/Homemaker

Top Level Executive

Director

10%

Administrative/Support personnel

14%

Manager

26%

Professional

43% 0%

10%

20%

30%

40%

50%

Figure 42 – Professionals: position

The large frequency of managers and professionals, resulted in higher levels average of income among respondents [Figure 43]. The mode was represented by the ‘£30.000,- to £50.000,-’ category (n=83), closely followed by the ‘£50.000 and £100.000’ category (n=75), while

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Chapter 16 l Segmentation

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individuals earning more than £100.000 represented 15% (n=47%). 81% of the respondents exceeded the average household income levels of Scotland (HMRC, 2005), indicating an above average prosperous respondents.

Less than £10.000,-

Between £ 10.000 and £ 20.000,-

13%

Between £20.000,- and £ 30.000,-

15%

More than £ 100.000 ,-

15%

Between £ 50.000,- and £ 100.000,-

24%

Between £ 30.000,- and £ 50.000,-

27% 0%

10%

15%

20%

25%

30%

Figure 43 – Professionals: Income

The concluding question targeted specifically at professionals examined the size of organisations [Figure 44]. The majority worked for an organisation employing 500 to 9.999 people (n=85). The size of the organisation was not known to 10% of the respondents. 30%

27%

25% 20% 15%

15% 10%

10%

16% 11%

5-9

10 - 19

5% 0% N/A

1-4

20 - 99

100 - 499 500 - 9,999 10,000+

Figure 44 – Professionals: Size organisation

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Chapter 17 l Smartphones

Findings

17 Smartphones Smartphones played a key role in the primary research. In this section, the respondents were presented with questions that would identify the possession of a smartphone and which factors affected the decision not to purchase one. Smartphones are owned by 63% of the respondents (n=265), while 37% of indicated not to own a smartphone (n=156) [Figure 45]. 80% 60% 40% 20% 0%

Yes

Figure 45 – Possession of a Smartphone

When the respondents are questioned whether they intend to purchase a smartphone, 48% of the respondents answered ‘yes’ and 52% responded with a ‘no’ [Figure 46]. 60% 50% 40% 30% 20% 10% 0%

Yes

Figure 46 – Intention of buying a smartphone MSc Dissertation l Aberdeen Business School

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Chapter 17 l Smartphones

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Further investigation of why respondents were considering purchasing a smartphone demonstrated that 80% of them were attracted by the extended features (n=58). A group of 26 individuals (36%) felt that they were ready to try a smartphone and 7 individuals (10%) found smartphones to be affordable [Figure 47] 100% 80%

80%

60% 36%

40% 20%

10%

More affordable

Required for work

Other

0% Extended features

Ready to try it

Figure 47 â&#x20AC;&#x201C; Motivation to purchase a smartphone

Enquiring why 52% of the respondents were not interested in purchasing a smartphone revealed that 61% of the individuals [n=50] felt they did not require the extended features [Figure 48]. The second largest category still considered smartphones too expensive, while less than 10% considered them too complicated.

Too complicated Other I am a late adopter of technology Too expensive I don't need extended features 0%

10%

20%

30%

40%

50%

60%

70%

Figure 48 â&#x20AC;&#x201C; Reason for not intending to purchase a smartphone MSc Dissertation l Aberdeen Business School

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Chapter 18 l UTAUT

Findings

18 UTAUT The UTAUT framework as indicated previously formed the foundation of the questionnaire. Two moderators namely gender and age were addressed at the initial phase of the questionnaire. The remaining components of the UTAUT model were addressed individually. 18.1 Use Behaviour Use behaviour denotes the actual usage of smartphones within the UTAUT framework. The largest amount of respondents now own their smartphones between one and two years (33%, n=87), closely followed by three to four years (30%, n=81) and less than one year (29%, n=77). Only 2% indicated to be a user of smartphone for more than 8 years (n=6) [Figure 49].

More than 8 years

6 to 8 year

3 to 5 years

30%

1 to 2 years

33%

Less than one year

29% 0%

10%

15%

20%

25%

30%

35%

Figure 49 â&#x20AC;&#x201C; User of smartphones (in years)

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Chapter 18 l UTAUT

Findings

Basic mobile phones are primarily designed to make calls and use textmessaging services. Smartphones as discussed in chapter 2 are intended to perform a range of activities. Interestingly, smartphones are more often used for checking e-mail (91%, n=243), browsing the web (85%, n=226) and as calendar/organiser (80%, n=214) than they are used for calls and instant messaging services (73%, n=195). The least popular activity on a smartphone was word processing (16%, n=42) [Figure 50].

Word processing Other Gaming Directions/maps Voice and instant messaging Calendar/ Organiser Web surfing Checking e-mail 0%

20%

40%

60%

80%

100%

Figure 50 â&#x20AC;&#x201C; Activities on a smartphone

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Chapter 18 l UTAUT

Findings

Research indicated that smartphones are being used for a variety of activities. Their key feature is considered portability, enabling users to use them at any given time. More than half of the respondents (58%, n=156) used their smartphones during daily commutes [Figure 51]. Home is however the most popular location to use a smartphone (90%, n=239). Minority of the respondents indicated that they only use a smartphone if a computer is not available (18%, n=47).

Only when a computer in not available

Meetings away from office

During daily commutes

At work

During Travel

At home 0%

20%

40%

60%

80%

100%

Figure 51 â&#x20AC;&#x201C; When smartphones are used

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Chapter 18 l UTAUT

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18.2 Social Influence This category was aimed at understanding the social aspects related to the use of smartphones. Respondents were presented with five questions [Figure 52]. Only 9% of the respondents disagreed that using of smartphone is trendy. This trend continued as 61% of the respondents disagreed that mobile phones are good enough.

Using a smartphone is trendy

I find it annoying when people use smartphones at work Smartphones are a hype, mobile phones are good enough My company/university encourages the use of smartphones [i.e. through policies] Not having a smartphone will affect my interactivity with my social network (i.e. blackberry messenger) Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 52 â&#x20AC;&#x201C; Social influence

The figures support the surge in popularity of smartphones as noted in the literature review. This is further reflected in the behaviour of people, as only 12% found it annoying when people use smartphones at work.

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Chapter 18 l UTAUT

Findings

When asked whether the respondent’s company/university encourages them to use a smartphone, 40% replied with ‘neutral’, which could indicate that most organisation do not have policies regarding this matter. Smartphones play dissimilar roles in individual’s lives as tools to social network. 31% of the respondents are affected in their social interactivity if they would not possess a smartphone, 43% would not notice a difference. [Details of the statements are recorded in Table 1]

Statement Strongly Disagree

18%

21%

13%

Disagree

50%

45%

20%

30%

Neutral

33%

20%

18%

40%

26%

Agree

40%

10%

11%

20%

23%

Strongly Agree

18%

11%

Table 1 – Social Influence data

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Chapter 18 l UTAUT

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18.3 Facilitating Conditions The use of smartphones can be affected by the conditions of the environment. Smartphones with fast internet connections can make other devices redundant (Markis, 2010), if the network provider offers the service. Fast network availability was not an issue among the respondents as 68% of the respondents disagreed to the statement that their provider did not support a 3g network [Figure 53].

My friends and family guide me in the use of smartphones I can get assistance from the supplier of my smartphone in case of problems The operating cost of a smartphone do not prevent the use of it My company/university does not support the usage of smartphones My network provider does not fully support the usage of smartphones Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 53 â&#x20AC;&#x201C; Facilitating Conditions

Although respondents indicated previously that their organisations were not proactively promoting the use of smartphones [Figure 52], only 13% agreed when asked whether their organisation did not support smartphones. Which means that although the use is not encourages, the support for users of smartphones is available. MSc Dissertation l Aberdeen Business School

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Chapter 18 l UTAUT

Findings

Interestingly, 61% of the respondents disagreed when asked whether their family and friend helped them use smartphones. This could relate to the fact that Gen X and Y together formed 76% of the respondents. As both of these generations are considered tech savvy, they do not require assistance in operating smartphones. Smartphones are more expensive to operate than mobile phones; however, this does not prevent 61% of the respondents to purchase a smartphone. Only 15% of the respondents indicated that the operating costs affect the purchase decision. [Details of the statements are recorded in Table 2]

Statement

Strongly Disagree

22%

29%

Disagree

39%

17%

12%

34%

39%

Neutral

17%

28%

26%

31%

18%

Agree

20%

47%

50%

10%

12%

Strongly Agree

Table 2 â&#x20AC;&#x201C; Facilitating conditions data

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Chapter 18 l UTAUT

Findings

18.4 Effort Expectancy The degree of ease associated with smartphones can increase or reduce the uptake. The majority of respondents indicated to consider themselves skilful at using smartphones (80%).

Other statements

measuring the quality of interaction (79%) and the use of features (81%) reported roughly the same figures. Relatively high negative responses were noted when respondents were asked whether they found the learning curve to be low, on which 20% of the respondents disagreed [Figure 54, Table 3].

My interaction with smartphones is clear and understandable I am skilful at using smartphones

Learning to use smartphones is easy for me I find it easy to use all the features of my smartphone Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 54 â&#x20AC;&#x201C; Effort Expectancy Statement

Strongly Disagree

Disagree

Neutral

14%

10%

Agree

47%

43%

50%

Strongly Agree

32%

33%

29%

31%

Table 3 â&#x20AC;&#x201C; Effort Expectancy data MSc Dissertation l Aberdeen Business School

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Chapter 18 l UTAUT

Findings

18.5 Experience The figures demonstrated that the greatest uptake of smartphone took place in the past 5 years [Â§ 18.1]. The experience of users of smartphones greatly differs. Smartphones contribute to the decline of proper workplace etiquette according to 37% of the respondents, while 32% disagree with the same notion [Figure 55].

I enjoy buying high-tech equipment

Smartphone is an essential tool in my daily life

Smartphones encourage too much multitasking A smartphone provides me with a more efficient and organised tool in my job Smartphones contribute to the decline of proper workplace etiquette Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 55 â&#x20AC;&#x201C; Experience

The majority of the respondents enjoyed buying high-tech equipment [70%] and 62% of the respondents found smartphones to be an essential tool in their daily life. Findings therefore advocate that people are buying smartphones to fulfil a particular need; in this case contradicting earlier research indicating that people purchase high tech products primarily for prestige (Hamann et al, 2007).

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Chapter 18 l UTAUT

Findings

However, 31% of the respondents find that smartphones encourage too much multitasking, whereas 39% of the respondents do not agree with this notion. To 62% of the respondents, the smartphones provide the individuals with a more efficient and organised tool in their jobs. [Details of the statements are recorded in Table 4]

Statement

Strongly Disagree

Disagree

15%

34%

11%

30%

Neutral

21%

19%

30%

25%

32%

Agree

41%

42%

23%

47%

27%

Strongly Agree

29%

19%

15%

Table 4 â&#x20AC;&#x201C; Experience data

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Chapter 18 l UTAUT

Findings

18.6 Performance Expectancy Performance expectancy relates to which degree an individual believes that smartphones will affect their job performance. In general, the majority of respondents (68%) agreed that smartphones positively affected the quality of their work output [Figure 56]. While nearly all of the respondents found their smartphones to be useful (92%).

I find smartphones useful

Using smartphones enables me to accomplish tasks more quickly

Using smartphones increases the effective use of my time in handling my tasks and responsibilities

Using smartphones increases the quality of my work output at minimal efforts

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 56 â&#x20AC;&#x201C; Performance expectancy

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Chapter 18 l UTAUT

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84% of the respondents agree that using smartphones allows them to increase the effectiveness of their time in handling tasks and responsibilities, whereas 72% of the respondents believe that is also helps to complete their tasks more quickly. [Details of the statements are recorded in Table 5Table 4Table 1]

Statement

Strongly Disagree

Disagree

Neutral

17%

Agree

55%

46%

43%

49%

Strongly Agree

37%

32%

41%

19%

Table 5 â&#x20AC;&#x201C; Performance Expectancy data

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Chapter 18 l UTAUT

Findings

18.7 Voluntariness of use Using smartphones may not be a choice; companies may provide their employees with these devices in order for them to be connected to essential resources. 64% of the respondents did not require a smartphone to complete their work, nor did it prevent them from accessing essential data (58%). However, 66% of the respondents would not purchase a smartphone before its benefits were demonstrated [Figure 57, Table 6]

I want to see the benefits of a smartphone demonstrated before I purchase it I have a smartphone because I cannot complete my work without it My organisation has provided me with a smartphone Without a smartphone I cannot access essential data Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 57 â&#x20AC;&#x201C; Voluntariness of use

Statement

Strongly Disagree

16%

31%

19%

Disagree

18%

48%

28%

39%

Neutral

13%

16%

Agree

48%

16%

19%

22%

Strongly Agree

18%

13%

Table 6 â&#x20AC;&#x201C; Voluntariness of use data

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Chapter 18 l UTAUT

Findings

18.8 Behavioural Intention Behavioural intention denotes how individuals intend to use their smartphones. 41% indicated that they did not intend to use all the functions, whereas 44% of the responds does have the intention to use all functions.

I intend to use all functions of my smartphone

I intend to use my smartphone only at work

I intend to use my smartphone outside of work

I will only use a smartphone if I have to

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Figure 58 â&#x20AC;&#x201C; Behavioural Intention

Results furthermore showed that 85% does not intend to use their smartphones merely at work, while only 7% of the respondents indicated they would not prefer to use their smartphone outside of work. Figures suggest that most individuals do not mind using their MSc Dissertation l Aberdeen Business School

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Findings

smartphones, as merely 19% would only use a smartphone if they had no other option. [Details of the statements are recorded in Table 7]

Statement

Strongly Disagree

29%

24%

Disagree

34%

56%

10%

43%

Neutral

15%

14%

Agree

34%

54%

15%

Strongly Agree

10%

28%

Table 7 â&#x20AC;&#x201C; Behavioural Intention

In the following section, the findings are analysed and discussed.

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Chapter 18 l UTAUT

Analysis & Discussion

The Era of the

Virtual Office

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Chapter 19 l Overview

Analysis & Discussion

19 Overview In the former section, data was converted into information. This section will transform the information into knowledge. Primary research targeted five generations. Unfortunately, the veterans and generation Z did not produce a useable sample; therefore, no further statements are made in regards to these generations. The analysis and discussion will deliberate on Baby Boomers (referred as ‘Boomers’), generation X (referred as ‘Gen X’), and generation Y (referred as ‘Gen Y’). The section will discuss the adoption of smartphones among the three generations. Before analysing how the workplace has been affected by smartphones, it is essential to understand the general view on smartphones and how societal factors have played a role. The section will conclude by drawing upon the findings made by analysing and discussing the data.

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Chapter 20 l Smartphones

Analysis & Discussion

20 Smartphones 20.1 Adoption of smartphones Smartphones have experienced rapid growth in usage and the industry is expected to grow 24% annually (Telecoms market research, 2010). Research shows that among the three generations, the majority is an owner of a smartphone. Gen X leads the path with an adoption rate of 68%, closely followed by Gen Y [Figure 59]. 80% 60%

68%

64%

58% 42%

40%

36%

32%

20% 0% Boomers

Gen X Yes

Gen Y

Figure 59 â&#x20AC;&#x201C; Owner of a Smartphone

Generation Yâ&#x20AC;&#x2122;s adoption is yet very strong, as 47% of this generation is a student, which are known for their limited financial resources. Whereas 93% of the boomers were (self) employed, which was also the case for Gen X [Figure 60]. Findings previously showed that 81% of the professionals exceeded the average household income in Scotland [Figure 43]. The gap in spending power can justify the adoption rates.

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Chapter 20 l Smartphones

100%

Analysis & Discussion

93% 93%

90% 80% 70% 60%

49%

50%

47%

40% 30% 20% 10%

0% (Self) Employed

Unemployed Boomers

Retired Gen X

Student

Gen Y

Figure 60 – Occupation

As highlighted in the literature, Boomers are found to be a very lucrative market due to their high spending power and nearly half of the Boomers (43%) do not possess a smartphone [Figure 59]. However when asked whether these individuals intended to purchase a smartphone, 77% of them responded with a ‘no’ [Figure 61].

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

77% 59% 41%

64%

36%

23%

Boomers

Gen X Yes

Gen Y

Figure 61 – Intention to purchase a Smartphone

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Chapter 20 l Smartphones

Analysis & Discussion

The most common reason for Boomers not to purchase a smartphone is due to the high purchase cost [Figure 62], Gen X and Y found smartphones to be too expensive as well. Most intriguing detail was that although Gen Y is considered most tech savvy among the three, it was also the generation that most often indicated to find smartphones to be too complicated. Many individuals of the three generations indicated that they had no use for the extended features, eliminating the key selling point of smartphones. Other responses included “I have a laptop, it satisfies my needs for connectivity” and “(I am) not sure yet, because there are so many varieties available”. 30% 26%

25%

24% 24%

23% 23%

22%

23% 21%

19%

20%

18% 15%

15%

16%

15% 15%

10%

10% 5% 0% Too Expensive

Extended features not required

Too Complicated Late adopter of Technology

Boomers

Gen X

Other

Gen Y

Figure 62 – Motive for not purchasing a smartphone

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Chapter 20 l Smartphones

Analysis & Discussion

On the other hand, the extended features motivate the majority that do intend to purchase a smartphone [Figure 47]. Gen X is most curious about the extended features (71%) [Figure 63]. This generation was also the largest group that required smartphones for work (21%).

organisations increase their attention towards mobile working, it seems like Gen X is the first to encounter the new policies. Although only 4% of the Gen Y indicated that they require smartphones to work, it must be taken into account that most respondents of this cohort are students. This number can increase significantly by the time Gen Y has completed their education and is ready to join the workforce. 80% 71%

70% 58%

60% 50%

46% 39%

40%

27%

30% 21%

20%

15% 7%

10% 0%

Affordable

4% 0%

Extended features Boomers

4% 0% 0%

Required for Work Gen X

Ready to try it

Other

Gen Y

Figure 63 â&#x20AC;&#x201C; Motive for purchasing a smartphone

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Chapter 20 l Smartphones

Analysis & Discussion

20.2 Experience with smartphones Findings revealed that the greatest adoption of smartphones took place in the last five years [Figure 49]. Adoption before that period was primary led by Boomers [Figure 64]. 50%

44% 37%

40% 30% 20%

25%

36%

35%

30%

25%

24%

14%

14% 6%

10%

0% < one year

1 to 2 years

3 to 5 years

Boomers

Gen X

6 to 8 years

1% 1%

> 8 years

Gen Y

Figure 64 â&#x20AC;&#x201C; Adoption of smartphones per generation

There are several arguments for Boomer purchasing more smartphones in this period than other generations. Before 2005, smartphones were business devices [Table 8]. They were popular in corporate environment due to their organising capabilities. Options < one year

Year 2009 - present

1 to 2 years 3 to 5 years 6 to 8 years > 8 years

2008 - 2009 2005 - 2007 2002 - 2004 Before 2002

Major Launches iPhone 4, Windows Mobile 6.5, Android 2.2, Blackberry OS 6 , Windows Phone 7* iPhone 3G, iPhone 3GS, Android Windows Mobile 5, Windows Mobile 6, iPhone Nokia Communicator, Blackberry 5810 Palm OS, iPAQ, Pocket PC *

Windows Phone 7 will be released in October 2010

Figure produced by author utilising Android (2010), Blackberry (2002), Microsoft (2010), Mombert (2010), Shaun (2010),

Table 8 â&#x20AC;&#x201C; Major Product launches

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Chapter 20 l Smartphones

Analysis & Discussion

However, since 2005 significant changes took place [Table 8]. Early 2005, Microsoft addressed the consumer market by integrating multimedia possibilities into its Windows Mobile 5 platform (Microsoft Press, 2005). Although uptake was slow, smartphones were becoming increasingly popular. In 2007, Apple launched a smartphone focussing on consumer market and sold nearly 1.4 million units in 2007 alone (Apple, 2007). Same year Microsoft launched Windows Mobile 6 to compete within the smartphone market. Finally, Google entered the market with Android; considerably boosting the share of smartphone. This trend is clearly visible as adoption jumped from 6% to 30% between 2002 (2 to 8 years) and 2007 (3 to 5 years). Particularly the share of generation X and Y soared in the smartphone market [Figure 65]. In addition, in the past 5 years, smartphones have become more affordable, have different form factors and wider available. 50%

44% 37%

40% 30% 20%

36%

35% 30%

25%

24%

14%

10%

0% Less than one year

1 to 2 years Boomers

Gen X

3 to 5 years Gen Y

6 to 8 year

1% 1%

More than 8 years

Overal Adoption

Figure 65 â&#x20AC;&#x201C; Adoption of smartphones per generation (including totals)

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Chapter 20 l Smartphones

Analysis & Discussion

20.3 Usage of Smartphones Smartphones provide their users with the ability to conduct a wide range of activities. It was expected that the use of smartphones would significantly differ among generations, yet findings generally stated the contrary [Figure 66]. 0%

10%

15%

20%

25% 21%

19%

Check e-mail

19% 18% 18%

Web surfing

18% 18% 18%

Calander/Organiser

18% 19% 17%

Voice & Instant messaging 14% 14% 14%

Navigation

14% 3% 6%

Gaming

9% 2% 5%

Word processing 3%

Other

3% 6%

Boomers

Gen X

Gen Y

Figure 66 â&#x20AC;&#x201C; Activities on a smartphone

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Chapter 20 l Smartphones

Analysis & Discussion

Checking e-mail is the most popular activity among all generations. Not a very surprising development, as e-mail integration into smartphones has become highly intelligent. Push technology transfers e-mails from servers to smartphones instantly and actively, providing users with continues access to their email (Prasad et al, 2009). E-mail technology allows users to share more types of data (pictures, videos, and links), which has resulted in a decrease of the traditional activity on a phone namely voice and messaging. This activity was ranked fourth and could start to loose popularity as other tools on smartphones become more sophisticated. It could be argued that smartphones have become less of a phone and more of a computer. The Oxford dictionary describes a (tele)phone as ‘a system for transmitting voices over a distance using wire or radio, by converting acoustic vibrations to electrical signals’ (Oxford Dictionaries, 2010a). The same dictionary describes a computer as ‘an electronic device which is capable of receiving information (data) in a particular form and of performing a sequence of operations…’ (Oxford Dictionaries, 2010b). It is evident from the findings that users of smartphone purchase them not to call and text people, but more importantly to connect with people around the world in various ways.

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Chapter 20 l Smartphones

Analysis & Discussion

Research conducted by the market research firm Nielson, support this claim as it appears that; with the exception of Android OS, where it comes in second; Facebook application is the most popular smartphone application (Nielson, 2010). Navigation is an equally popular activity. In 2001, Rainio stated, “Location-based services and personal navigation have a huge potential. First time in the history of mankind the maps and geographic information in general will meet a real mass market” (Rainio, 2001: p. 13). This claim was disputed more recently by Tscheligi and Sefelin (2006) which stated, “We do not argue that guiding systems for pedestrians will not work and will not sell… However, a system from which the majority of travellers, hikers, tourists, etc. can benefit still seems far away”. Four years later, mobile navigation is widely adopted and will continue to become more common as large suppliers including Google [Google Maps], Microsoft [Bing Maps] and Nokia [Ovi Maps] are offering free navigation tools (Bing, 2010; Google Mobile, 2010; Nokia, 2010). Although smartphones encourage mobility, the favourite time to use them was at home [Figure 51]. It could be suggested that smartphones have become very personal as earlier research indicated that

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Analysis & Discussion

smartphones tied with having intimidate personal relationships as being the number one thing smartphone users cannot live without (RingCentral, 2010). Gen Y is most comfortable among the three generations to use smartphones during travelling and daily commutes. However, they also most often indicated to use a smartphone only when a pc was not available. Apart from the usage during daily commutes, the three generations shared similar preference. 0%

10%

15%

20%

25%

30% 26%

24%

Home

24% 23% 23%

Work 19%

22% 21%

Travel

23% 10% 15%

Daily commutes

18% 16% 15%

Away from office

15% 4%

Computer is n/a

3% 5%

Boomers

Gen X

Gen Y

Figure 67 â&#x20AC;&#x201C; Preference of smartphone usage location

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21 Social 21.1 Smartphones in the society Using smartphones is considered trendy in today’s society [Figure 52]. This could relate to the fact that trendy people prefer the latest technology, which in turn makes smartphones trendy (Siddiqui et al, 2009). Especially Gen Y considers this the case; they are a trendy, tech savvy and fashion conscious generation, whereas Boomers generally took a neutral stance on this aspect [Figure 68]. Majority of Gen X also consider the usage of smartphone trendy. The results highlight the different perceptions on the use of smartphones and are in line with previous research, whereby youngsters (Gen Y) are keener on adopting trendy products (Samost, 2009).

60%

54%

50%

41%

40%

30%

30% 20% 10%

26%

27%

25%

13% 7%

44%

12%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y Response to: “using a smartphone is trendy”

Figure 68 – Trendiness of Smartphones

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Although Boomers may not consider smartphones trendy, they are most keen on buying hi-tech equipment. It could relate to the fact that Boomers as described in the literature seek quality and comfort in life, which makes a smartphone a tool to attain these needs, contrary to the trendy Gen Y. Gen X is often described as the middle child that balances his decision between his older and younger siblings (Stephey, 2008; Zemke et al, 2000) and this trend is beginning to appear, as this generation seems to be in the middle of the other two generations.

47%

50%

42%

40% 30% 20%

20% 10% 0%

Strongly Disagree

23%

38% 27%

29% 30%

21%

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “I enjoy buying hi-tech equipment”

Figure 69 – Purchasing Hi-Tech equipment

The Boomers (78%) and Gen X (76%) consider the smartphone a more useful tool than mobile phones and disregard it as being a hype [Figure 70]. In contrast, 21% of Gen Y agreed that smartphones are a hype and

that mobile phones are good enough, nearly twice as many as the

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Boomers and Gen X. This is unusual as Gen Y among other generations least often used the traditional voice and messaging functions on a smartphone [Figure 66]. 60% 40%

48%

57% 38%

30% 19% 19%

20%

11%

16%

22%

16% 5%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “Smartphones are a hype, mobile phones are good enough”

Figure 70 – Smartphones are a Hype

Moreover, it is Gen Y’s interactivity with its social network that is most affected (34%) when a smartphone is not available [Figure 71]. Smartphones enable users to connect through web and applications, whereas a mobile phone does not offer this functionality. Twitter and Foursquare have created platforms that encourage continues interaction with your social network, the intensity of usage of this kind of services can rectify the differences in usage. 40% 30% 20% 10% 0%

34% 36% 18% 8%

34% 25%

26% 23%

25%

19%

24% 10% 10%

9% 0%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “Not having a smartphone will affect my interactivity with my social network”

Figure 71 – Interactivity with Social Network MSc Dissertation l Aberdeen Business School

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Analysis & Discussion

21.2 Access to resources Access to certain resources can affect the adoption of smartphones in a positive or a negative manner; access to assistance in how to operate smartphones, access to financial resources and access to technical resources can be factor. Connection speeds for instance are a key determinant of the user experience on a smartphone as most activities occur externally; i.e. checking e-mail and surfing the web. Providers understand that by offering faster connection speeds they can attract customers. This strategy was visible in the results, as the majority among all generations indicated that their providers fully support the use of smartphones [Figure 72]. However, it must be noted that respondents of the questionnaire were mainly of European origin [Figure 36], where the penetration of mobile services (3G network) is generally

higher than other parts of the world (Forrester Research, 2008; Lomas, 2008; Meller, 2007). 50%

44% 44%

40% 30%

33%

30%

35% 26%

22%

19%

20%

10%

15% 0%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “My Network provider does not fully support the usage of smartphones”

Figure 72 – Usage support from Provider MSc Dissertation l Aberdeen Business School

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Analysis & Discussion

These investments made by providers result in increased costs for smartphones users (Clark, 2010). This development however does not prevent any of the generations to stop using smartphones [Figure 73]. Boomers (63%) and Gen X (68%) accept the operational cost of smartphone, followed by 53% of Gen Y. 31% of the Gen Y indicated to have a neutral stance on this matter. This could relate to the limited disposable income they have, as a significant number (47%) of this generation indicated to be a student, whereas 93% of the Boomers and 92% of Gen X was self-employed [Figure 74]. 80%

57% 59%

60%

43%

40% 20% 0%

11% 12% 13%

Strongly Disagree

21% 20%

31% 5%

Disagree

Neutral

Boomers

Gen X

Agree

9% 10%

Strongly Agree

Gen Y

Response to: “The operating costs of a smartphone do not prevent the use of it”

Figure 73 – Operating cost of Smartphones 100%

93% 92%

80% 60%

49%

47%

40% 20%

0% (Self) Employed

Unemployed Boomers

Retired Gen X

Student

Gen Y

Response to: “Which of the following describes your current position”

Figure 74 – Position of Respondents MSc Dissertation l Aberdeen Business School

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Analysis & Discussion

Analysis of the results demonstrated that the majority of individuals from all generations had sufficient access to technical and financial resources. A final aspect was whether they had access to support/assistance in handling issues related to smartphones. Friends and family are often first ones to be considered for help. Findings demonstrate that the majority of all generations disagreed when asked whether their friend and family guide them in the use of smartphones [Figure 75]. 46%

50% 36%

40% 30% 20%

36%

29%

29% 22%

16%

15%

13%

22%

19% 10%

10%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: â&#x20AC;&#x153;My friends and family guide me in the use of smartphonesâ&#x20AC;?

Figure 75 â&#x20AC;&#x201C; Guidance from family and friends

Gen X most often disagreed (75%), followed by Gen Y (58%) and Boomers (51%). Boomers (33%) on the contrary most often agreed to be assisted by family and friends. The explanation for the high number of disagreements could be twofold. The first argument could relate to the willingness of family members and friends to assist. The second argument could be that people may not require the assistance in using

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Analysis & Discussion

the smartphones and therefore disagreed to the statements. This could especially be the case among Gen X, as many individuals of this cohort have been users of smartphones for 3 to 5 years [Figure 64] and therefore do not require much assistance in the usage of a smartphone. Alternative source for assistance is the supplier of the smartphone. Most individuals agreed that assistance was available from the supplier [Figure 76]. However, 28% of the Boomer disagreed, whereas the other two

generations did not feel as strongly about this matter. As the literature demonstrated, it could relate to the fact that Boomers consider themselves open-minded and resourceful experimenters, and are therefore unwilling to seek support. However, this is being contradicted within the analysis itself as the Boomer’s family and friends most often guide them in the use of smartphones [Figure 75].

60%

49% 51%

50% 40%

20% 10%

29% 31%

26%

30%

15% 15% 2%

44%

18% 6%

Strongly Disagree

Disagree

Boomers

Neutral

Gen X

Agree

Strongly Agree

Gen Y

Response to: “I can get assistance from the supplier of my smartphones”

Figure 76 – Support from suppliers

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Analysis & Discussion

21.3 Smartphones: a need or a want The concept of needs and wants describes whether a product or a service is essential to a person (a need) or when it is not necessary and the individual desires the product or service (a want) (Solomon, 2002). Gen X (69%) most often indicated to find their smartphones to be an essential tool in their daily lives, followed by 61% of Gen Y and 57% of the Boomers [Figure 75]. 24% of Gen Y even indicated to be strongly attached to their smartphones (strongly agree), whereas Boomers (23%) were the largest group who disagreed with smartphones being essential. In general, the three generations largely found smartphones to be an essential tool in their daily lives. A major cause for this must be the fact that users are using smartphones for a wide variety of purposes as seen previously [Figure 66].

60%

53%

50%

44% 37%

40% 30% 18%

20% 10%

13% 15%

20%

16%

24%

20% 13%

16%

Strongly Disagree

Disagree

Neutral

Boomers

Gen X

Agree

Strongly Agree

Gen Y

Response to: “Smartphone is an essential tool in my daily life”

Figure 77 – Smartphones are essential MSc Dissertation l Aberdeen Business School

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Analysis & Discussion

Although smartphones are used for a variety of purposes, individuals from all generations seem to have a different opinion on whether they intend to use all the functions on their smartphones [Figure 78]. Interestingly, the three generations produced nearly similar results. However, Hoover (2008) for instance indicated that the iPhone is able to serve for an exceptionally wide variety of purposes due to the hundred thousands of applications that are available to its users. Upon reviewal, this question has become out-dated, as users are no longer limited to the functions a supplier provides, they can install applications that serve their need and wants more correctly. Nonetheless, 43% of the Boomers, 40% of Gen X and 47% of Gen Y indicated to have the intention to use all the functions on their smartphones. 60% 39%

40% 20%

39%

33% 32% 11%

7% 10% 5%

30%

34%

16% 16% 4%

10% 13%

Strongly Disagree

Disagree

Neutral

Boomers

Gen X

Agree

Strongly Agree

Gen Y

Response to: “I intend to use all functions of my smartphone”

Figure 78 – Intention of use

Being able to conduct such a wide range of activities on a smartphone can result in an increased level of multitasking. Although multitasking has been shown to slow learning and reduce efficiency (Jarmon, 2008), it

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Analysis & Discussion

is heavily marketed by manufacturers as a feature (Buchanan, 2010) and proclaimed smartphones guru; Khawand (2007:p.94) even states: “what is a smartphone good for if it doesn’t even let you multi-task?”. Gen X (43%) and Boomers (42%) indicate that according to them smartphones do not encourage too much multitasking, unlike Gen Y (26%) which did not share the view to the same extend [Figure 79]. Highest frequency of ‘strongly agree’ was noted among Gen Y (11%). Research conducted by UK’s communications regulator Ofcom (2010) has previously indicated that Gen Y is most actively conducting activities simultaneously among the three generations. It could therefore be the case that they experience this to a greater extent than other generations. Current research has revealed that smartphones have become more accepted; as a 2008 research conducted by LexisNexis (2008) revealed that among all three generations more than half of the respondents found that smartphones encourage too much multitasking. 60% 36%

40% 20%

40%

36% 24%

20% 6%

31% 20%

27%

23%

11%

Strongly Disagree

Disagree

Neutral

Boomers

Gen X

Agree

Strongly Agree

Gen Y

Response to: “Smartphones encourage too much multitasking”

Figure 79 – Multitasking on Smartphones

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Analysis & Discussion

Building on whether smartphones fulfil a need or a want, the three generations were asked whether they want to see the benefits demonstrated prior to their purchase.

More than half of each

generation would like to see the benefits demonstrated [Figure 80]. Yet within each generation, there is a disagreement. Boomers (28%) disagreed most often and would therefore buy a smartphone without knowing its benefits to them. The findings contradict Chen (2010) which stated that Boomers only tend to adopt new technology after its benefits are demonstrated and a need is satisfied. Boomers seem to be more willing to adopt new technology (smartphones) than the rest. Boomers have to capital to afford expensive technology, are willing experiment and enjoy life as stated by various authors (Bernstein, 2001; Hicks and Hicks, 1999; Yang and Jolly, 2008). 60% 45%

50%

49% 48%

40% 30%

21% 21%

20% 10%

17%

14% 15% 12%

13%

16%

21%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “I want to see the benefits of a smartphone demonstrated before I purchase it”

Figure 80 – The benefits of a smartphone

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Analysis & Discussion

Among Gen Y, with 20% of the individuals they least often indicated to purchase a smartphone without knowing the benefits, whereas 69% would like to see the benefits, of which 21% even strongly agreed to the statement. The findings argue with Manning-Shaffel (2002), she indicated that this tech savvy generation did not require much convincing to buy into the latest technology. On the contrary, Whittaker (2010) was accurate in stating that Gen Y is more aware of the choices they make and the product/services they want to buy and use. Smartphones seem to be popular among all generations, whether they serve a need or a want. More than one fifth of all generations strongly disagreed when asked whether they would use a smartphone only if they have to [Figure 81]. Making smartphones a device that individuals from all generations generally like to use. 60%

48%

50%

37%

40% 30% 20%

52%

20%

24% 26% 13%

10%

17% 7%

17% 13% 15%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “I will only use a smartphone if I have to”

Figure 81 – Smartphones: a burden?

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Chapter 22 l Workplace

Analysis & Discussion

22 Workplace 22.1 Organisational involvement The literature revealed that smartphones are becoming increasingly popular among organisations as a tool to increase efficiency and reduce costs [chapter 4]. This trend was experienced by 55% of the Boomers and 49% of Gen X, whereas only 14% of Gen Y was provided with a smartphone [Figure 82]. The findings are not very surprising as Boomers and Gen X form the largest group within the current workforce; therefore, they are experiencing the changes at present, whereas Gen Y is mostly student and has yet to join the workforce in greater numbers. 45%

39%

40%

37%

35% 28%

30%

24%

25% 20%

16%

15%

26%

23% 18%

15%

10%

9% 10%

10% 4%

5% 0%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “My organisation has provided me with a smartphone”

Figure 82 – Organisation provided a smartphone

In the case of students, it seems to be ‘obvious’ that universities do not provide them with smartphones. However, this is found to be rather MSc Dissertation l Aberdeen Business School

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Analysis & Discussion

strange, as universities become “more critical than ever as a provider of talent, knowledge, and innovation in the age of knowledge based capitalism” (Florida, 1999: p. 68), yet they lag in adopting new practises. There are nevertheless some exceptions, namely University of Leeds, which had decided to lend iPhones to its student doctors to foster learning experience (Nguyen, 2010), similarly California University of Pennsylvania has adopted a campus wide smartphone strategy that allows students to access a various services within the university (Rudra, 2010). Many companies/universities do not provide smartphones, however it appears that most of them do support the usage [Figure 83]. 45% 35%

35% 30%

39%

38%

40%

32%

31% 27%

25%

25% 20%

20% 16%

15%

10%

10% 4%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “My company/university does not support the usage of smartphones”

Figure 83 – Organisations do not support use

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Analysis & Discussion

Only a minority among the three generations agreed that their respective organisations do not provide support for the usage of a smartphone, though a significant amount of neutral replies were given, which could indicate an unclear policy from the management, especially among Gen Y (39%). Neutral replies were even more frequent when the generations where asked to indicate whether their organisations encouraged the use of smartphones [Figure 84]. The figures illustrate that many organisation have yet to developed strategies/policies to encourage or even discourage employees/students in their usage of smartphones. 45%

40%

42%

39%

35% 30% 23%

25% 20% 15%

23%

16% 16%

26% 16%

11%

13%

11%

10% 5%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: â&#x20AC;&#x153;My company/university encourages the use of smartphonesâ&#x20AC;?

Figure 84 â&#x20AC;&#x201C; Organisations encourage use

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Analysis & Discussion

22.2 Smartphone as a work tool Organisations may be keen on deploying smartphones and individuals may be keen on using smartphones, but are they perceived and used as business tools. Respondents were asked whether a smartphone provided them with a more efficient and organised tool in their jobs, whereby the majority of all generations had a neutral stance on this matter [Figure 85]. Findings indicate that majority of people have either not yet discovered how to use their smartphone to become more efficient and organised or have not yet experienced this. However, there are significant numbers of individuals that do find smartphones useful tools. A qualitative research would be required to investigate why a large number of respondents indicated to be neutral on this matter, as smartphones being tools that increase productiveness is used as one of the USP’s in business settings.

50%

40% 42% 39%

40% 30% 20% 10%

16% 16%

11% 3%

23%

26% 16%

11% 13% 11%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “A smartphone provides me with a more efficient and organised tool in my job”

Figure 85 – Smartphone: an efficient and organised work tool

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Analysis & Discussion

Smartphones however are not essential tools in order for one to work. Nevertheless, their absence may restrict individuals from accessing essential data [Figure 86, Figure 87]. 60% 40%

20%

16%

20%

39%

35% 38% 32%

27% 31%

25%

15% 4%

10%

Strongly Disagree

Disagree

Neutral

Boomers

Gen X

Agree

Strongly Agree

Gen Y

Response to: “I have a smartphone because I cannot complete my work without it”

Figure 86 – Cannot complete work without a smartphone

The majority disagrees that smartphones are necessary to complete their work [Figure 86]; however, 55% of the Boomers and 49% of Gen X indicated that they would be unable to access essential data if they did not possess a smartphone [Figure 87]. It could be argued that it may be difficult to deliver quality work without being able to access essential data, therefore significantly increasing the importance of having a smartphone. 60% 39%

40% 20%

28% 16%

37% 24%

37% 23%

15%

9% 10%

10%

18%

26% 4%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “Without a smartphone I cannot access essential data”

Figure 87 – Data inaccessible without a smartphone MSc Dissertation l Aberdeen Business School

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Analysis & Discussion

22.3 Mentality towards smartphones The mind-set of individuals can greatly affect the adoption of smartphones. Templar (2010) discusses the ‘herd mentality’, which describes the process of blending in existing organisations. All organisations have unwritten rules that are accepted by the individuals. These ‘rules’ may have an impact on the mentality towards smartphones. LexisNexis (2008) research discovered that 69% of the boomers found that PDA’s and mobile phones contribute to a decline of proper workplace etiquette, of which 23% even strongly agreed. Current research revealed that there is now a uniform dispersion among Boomers, whereby 30% agree, 30% disagree and 32% indicated to be neutral on the statement [Figure 88]. 36%

40%

30%

27%

35%

32%

28%

30%

26% 26%

20% 10%

8% 2%

Strongly Disagree

Disagree Boomers

Neutral Gen X

Agree

Strongly Agree

Gen Y

Response to: “Smartphones contribute to the decline of proper workplace etiquette”

Figure 88 – Decline of workplace etiquette

Only 2% of the Boomers strongly agreed to the statement. This can indicate a change in mentality among the Boomers in the use of

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Analysis & Discussion

smartphones. Among the generations, no significant changes are noticed. Even though Gen X and Gen Y are considered more tech savvy than the Boomers, their opinion does not differ much. Although smartphones predecessors PDA’s; were primary seen as business tool, this does no longer seem to be the case [Figure 89, Figure 90].

70% 60%

55%

59%

56%

50% 40% 30%

25%

27%

31%

20% 9%

10%

Strongly Disagree

Disagree

Neutral

Boomers

Gen X

Agree

Strongly Agree

Gen Y

Response to: “I intend to use my smartphones only at work”

Figure 89 – Smartphone only at work

Of all the questions examined, the questions aimed at enquiring whether respondents were willing to use their smartphones only at work or whether they would also use the smartphone outside of work produced the lowest neutral responses. The mentality of all generations was very clear on this matter, nearly everyone disagreed to using their smartphones only at work and nearly everyone agreed that they intend

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Analysis & Discussion

to use their smartphones outside of work. This clearly indicates that smartphones have to be more than just work tools, as individuals of all generations want to use them in their professional and social life. 70% 61%

60% 51%

53%

50% 40%

33%

30% 18%

20% 10%

30%

11% 10% 9% 2%

Strongly Disagree

Disagree

Neutral

Boomers

Gen X

Agree

Strongly Agree

Gen Y

Response to: “I intend to use my smartphones outside of work”

Figure 90 – Smartphone outside of work

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Analysis & Discussion

23 Summary This section analysed the findings to discover the differences and similarities between the Boomers, Gen X and Gen Y. The UTAUT constructs provided a valuable framework for identifying relevant aspects to the adoption of smartphones. It is essential to note that the research was not designed to validate the UTAUT framework; instead, it served as the foundation of the research and enabled the author to build his research on years of work by renowned academicians. The section was divided in three chapters, namely: Smartphones, Social and Workplace. Although the latter is key to the aim of this research, through the application of the UTAUT framework, a wider aspect was covered. This was necessary to create essential data to research the phenomena. The objectives were to critically analyse the adoption among generations and to examine whether a significant technology gap was existent. Analysis demonstrated that the adoption of smartphones among generations appeared to be nearly the same. Although a minority of Boomers were using smartphones before other generations, a

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Analysis & Discussion

substantial increase was noted in the past five years. The usage of smartphones did not appear to be very different either; checking e-mail was the most popular activity among each generation. However, there were certain activities that attracted one generation more than the other, even if the difference was marginal. Although the usage of smartphones was similar among generations, the perception was not. Gen X and Y found the smartphone to be a trendy device, whereas more than half of the Boomers had a neutral stance towards its trendiness. Owners of smartphones in all generations greatly agreed to enjoy purchasing hi-tech equipment, a predictable result as smartphones have a high tech appeal. Socially, the effects of not having a smartphone on the interactivity with social networks were most noticeable on Gen Y. This generation is more connected to online social networks and tends to spend more time on time. However, although Boomers and Gen X reported to notice the effect to a lesser extent, they shared the experience. This was in line with how smartphones were being used among generations. Among each generation, individuals agreed to find their smartphones an essential tool in their daily lives, with similar intentions to use the functions of their smartphones.

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Analysis & Discussion

The three generations had similar attitude towards a smartphone as a tool to be more efficient and organised in their jobs. They liked to use their smartphones at and outside of work and shared similar thoughts on smartphones effects on workplace etiquette. Analysing the findings indicates that smartphones are being adopted among all generations. They primarily attract tech savvy individuals within each generation and therefore the technology gap among the three generation appears to be limited. It was difficult to compare these findings to previous research, as they have not been conducted in an academic setting. Furthermore existing research is conducted by research firms that either attempt to promote their services or create brand awareness. As a result this research has touched a fairly novel concept and offers future research some perspective.

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Chapter 23 l Summary

Conclusion

The Era of the

Virtual Office

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Chapter 24 l Conclusion

Conclusion

24 Conclusion As smartphones are becoming increasingly popular within social and business environment, it offers many possibilities to research the developments. The starting point for this research was to analyse what had fuelled the soaring adoption of smartphones and how this was affecting business. Reviewing the literature revealed that although there are several aspects to the increased popularity of smartphones, key causes were the increased availability, greater focus by manufacturers and wider uses for the devices. It was interesting to discover that there was no commonly accepted definition for smartphones. Virtual office was a key concept within the research. The concept has been under research for over a decade and its definition has changed on several occasions in history. The most recent understanding of the concept describes a setting in which employees can interact, collaborate and be productive at any given time and anywhere in the world. Smartphones can greatly contribute to such concept and are therefore becoming increasingly popular in business settings. But the drive to integrate smartphones is not solitary driven by business; users are

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Chapter 24 l Conclusion

Conclusion

keener on using personal smartphones in their social and business life and are therefore pushing companies to adapt policies to accommodate this change. There is also a social development in which work is becoming something you do, not someplace you go. New breed of employees are demanding greater autonomy in their work and companies are changing business practises to meet the needs of this new employees. Some of the worldâ&#x20AC;&#x2122;s largest firms have adopted some degree of virtualisation to support their businesses. This trend will continue to gain popularity as newer generations enter the workforce and the current management is replaced by the next generation. This led to research the three largest generations within the current workforce namely Baby Boomers, Generation X and Generation Y. The Boomers control senior management and Gen Y is entering the workforce. All three generations have been impacted by different economic and social developments which have shaped their view on the world. Research revealed significant differences in attitudes towards work and life. In order to understand the usage of smartphones among these three generations a tested framework was applied. TRA and TAM have MSc Dissertation l Aberdeen Business School

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Chapter 24 l Conclusion

Conclusion

provided many researchers with a framework to understand technology acceptance, however all have shown limitations in practise. As a result the most prominent and comprehensive framework was selected, UTAUT. UTAUT was used as foundation for a questionnaire that was disseminated online to examine the three generations. The findings revealed a much a wider scope for research. Critical analysis established that in general, individuals from the three generations that were using smartphones had similar purpose for smartphones and attitudes towards the use of it. This was an interesting discovery, since the stereotypes of the three generations indicate significant differences. It was also noted that smartphone users were the tech savvy individuals within each generation and therefore the technology gap among them was insignificant. Research has revealed interesting developments that can have a substantial effect on how business is conducted. As the office becomes mobile, the workplace of the future may not resemble todays work environment. The effects of smartphones on the three generations have been examined and discussed and have exposed a greater trend which will significantly impact the workplace.

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Chapter 25 l Final Thoughts

Conclusion

25 Final Thoughts The author found the research to be very interesting as smartphones are part of the wider move in how technology, knowledge and social development are shaping our world. Conducting a comprehensive research as this, enabled the author not to only absorb new information on various topics, it also further developed analytical and critical thinking skills. Although a paper of this magnitude requires significant amount of work, it is upon completion a great learning experience. It would be outstanding if this work would inspire other researchers to conduct work in a similar field. In the following section, areas for further research are identified and recommendations are made based on the findings.

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Chapter 25 l Final Thoughts

Recommendations

The Era of the

Virtual Office

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Chapter 26 l Recommendations

Recommendations

26 Recommendations Recommendations are made based on the findings. They are divided in two sections, first section addresses areas for further research and second chapter provides practical recommendations to organisations. 26.1 Further Research

26.1.1

Cultural Differences

â&#x20AC;&#x153;Culture is more often a source of conflict than of synergyâ&#x20AC;? (Hofstede, 2010). The sample of current research was primary European; therefore, its findings may not apply to other cultures. Further research could examine the differences in adoption and use of smartphones in different cultures. 26.1.2

Gender Differences

Gender differences have been extensively examined in the academic world. Current research, collected data that could be used to identify differences among genders; however, this would make the project indistinct. Analysing the differences among genders could lead to identify the causes for adoption and examine the usage of smartphones.

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Chapter 26 l Recommendations

Recommendations

26.2 Practical

26.2.1

Universities should lead

Universities can only justify their existence by fostering knowledge and embracing innovation. Universities research many phenomenaâ&#x20AC;&#x2122;s and possess a deep knowledge of wide range of areas, yet they wait for business to implement their ideas. Universities can set an example by integrating smartphones into their learning environment and engaging in innovative information systems and knowledge management. The youngest generation is currently in university and should be prepared for pushing the boundaries of innovation and not for adopting business practises. Smartphones, combined with other devices could overhaul the out-dated university practises. A practical example would be to fully digitalise the library, making the library accessible to staff and students at any time and any place and eliminating costs for sustaining library staff and space.

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Chapter 26 l Recommendations

26.2.2

Recommendations

Policies and Practises

It is inevitable that organisations will have to deal with increasing number of smartphone users that will demand to fully utilise their devices. It is important that organisations developed a strategy to either support or halt the use of smartphones and communicate this clearly with their stakeholders. Research has revealed that organisations would do well in supporting these devices as they can provide creative solutions to various situations and will be widely adopted in the society. 26.2.3

Security and Operations

Smartphones can be very useful device, however as any other electronic communication device they create security and operational issues. It is important for organisations to understand these issues and take adequate measures to counteract any risks.

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Practical

Resources

The Era of the

Virtual Office

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References

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TANIAR, D., 2009. Mobile Computing: Concepts, Methodologies, Tools, and Applications. London: IGI Global. TAYLOR, S. and TODD, P.A., 1995. Understanding information technology: A test of competing models. Information systems research, 6(2), pp. 144-176 VERKASALO, H. et al., 2010. Analysis of users and non-users of smartphone applications. Telematics and Informatics, 27, pp. 242-255 WARREN, C., 2010. Business professionals can't live without sex or smartphones . [online] US: Mashable. Available from: http://mashable.com/2010/04/13/ringcentral-survey/ [Accessed 04/20 2010] WEILENMANN, A., 2001. Negotiating Use: Making Sense of Mobile Technology. Personal and Ubiquitous Computing, 5(2), pp. 137-145 WIXOM, B.H. and TODD, P.A., 2005. A Theoretical Integration of User Satisfaction and Technology Acceptance. Information Systems Research, 16(1), pp. 85-102

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Bibliography

Appendix

The Era of the

Virtual Office

MSc Dissertation l Aberdeen Business School

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Appendix

Appendix 1- Questionnaire Preview Two sample pages from the online questionnaire, representing the design and setting of the questionnaire.

MSc Dissertation l Aberdeen Business School

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Appendix

Appendix 2- Students: Preferred Industry 1%

Utilities Manufacturing Aerospace / Aviation / Automotive Retail Media / Printing / Publishing Leisure / Hotel / Entertainment / Recreation Government / Military Non-Profit IT / Telecommunications Other Construction / Engineering Research / Science Finance / Banking / Insurance / Legal Consulting / Professional Services Healthcare / Medical Marketing / Market Research / Publicâ&#x20AC;Ś

2% 2% 2% 3% 3% 3% 4% 4% 5% 6% 6% 12% 13% 13% 22%

10%

15%

20%

25%

Appendix 3- Professionals: Industry Agriculture / Forestry / Fishing Utilities Research / Science Real Estate Non-Profit Retail Manufacturing Mining Aerospace / Aviation / Automotive Transportation / Distribution Food Service Marketing / Market Research / Publicâ&#x20AC;Ś Government / Military Media / Printing / Publishing Leisure / Hotel / Entertainment / Recreation Education Healthcare / Medical Consulting / Professional Services Finance / Banking / Insurance / Legal IT / Telecommunications Construction / Engineering Other 0%

1% 0% 1% 1% 1% 2% 2% 2% 2% 3% 3% 3% 4% 4% 6% 8% 8% 8% 9% 10% 10% 14%

MSc Dissertation l Aberdeen Business School

8% 10% 12% 14% 16%

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Appendix

Robert Gordon University Aberdeen Business School

Adeel Qurashi BA (Hons) MSc International Business Student a.qurashi@rgu.ac.uk

Garthdee Road Aberdeen AB10 7QE Tel: +44 1224 262000 Web: www.rgu.ac.uk

September

2010 MSc Dissertation l Aberdeen Business School

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