A firm's post-adoption behavior: loyalty or switching costs?

Abstract

Purpose – This study aims to investigate the influences of loyalty and switching costs toward a firm's overall post-adoption behavior in using information system. Design/methodology/approach – A research model is developed around two constructs found in the literature – loyalty and switching costs – that are most critical in firms' decisions on continued use of the same IS service providing company. It is empirically tested using a survey of IT decision makers in total 102 companies in South Korea. Partial least squares method is used to assess the relationships specified in research model. Findings – The findings suggest that both loyalty and switching costs have positive influences on the continuous intention to use and the inattentiveness of alternatives. Research limitations/implications – Findings are based on a single point cross-sectional survey. To further investigate the continuance of specific IT service firms, triangulation will be necessary with longitudinal and qualitative data concerning the process of decision-making, including political and contractual situation. Originality/value – The study fills the research gap in studying post-adoption behavior at the firm level by empirically testing the duality of loyalty and switching costs.