Key determinants for user intention to adopt smart home ecosystems

Abstract: IoT is a technology where different devices are equipped with internet connection which makes it possible to control them and exchange data over internet. IoT can be thought of as an umbrella term covering a broad and ever-growing range of services and technologies. One of the segments within IoT is the smart home ecosystem. The tremendous development the last decade within smartphones, wearable devices and broadband has created new ways to connect individual devices in the home (Qasim and Abu-Shanab, 2016; Jeong et al, 2016; Wilson et al, 2017; Hubert et al, 2017). This creates a synergy effect; by connecting multiple devices to a system new value is created. Energy, home controls, security, communication and entertainment services are all included in the smart home (Miller, 2015; Wilson et al, 2017). Even though the concept of smart homes has a large potential it seems like it has not reached its full potential and the diffusion of the innovation among the consumers is still at an early stage (Balta-Ozkan et.al, 2013; Yang et.al 2017). So far, many studies have been performed on the technical aspects of IoT and smart home ecosystems but less attention has been paid on the consumer point of view and what determinants that play a role in the intention to adopt the technology (Yang, Lee, and Zo. 2017). In addition, previous studies have mainly focused of one single device and has not considered the entire ecosystem (Yang, Lee, and Zo. 2017). Therefore, the purpose with this thesis is to study what are the key determinants for the intention to adopt smart homes from an ecosystem point of view. To fulfill the purpose known theoretical models regarding intention to adopt technology have been used to develop a research model. The basis to establish the research model has been the theory of innovation adoption, TRA, TPB, TAM, VAM and UTAUT. Based on the literature four determinants were selected to be included in the model; these were cost, perceived ease of use, perceived usefulness and individualization. The first three are all included in the mentioned theoretical models and have previously been proven to be important for intention to adopt. The last one, individualization is derived from the field of product differentiation. In the literature it is mentioned that the possibility to refine, adjust and modify may be crucial for the user (Dodgson et.al. 2008). With this background it was interested to include individualization as a determinant in the research model and study how it impacts intention to adopt. In addition to the determinants one moderator was included; the composition of the household. In order to collect the empirical data a survey was conducted using the snowball sampling approach via Facebook and LinkedIn. The survey consisted of two sections where the first section aimed to collect background information about the respondent and the second section consisted of questions regarding the determinants. In the second section the respondents were asked to respond according to a 5-point Likert scale. The used questions in the survey was predefined in the literature. Study results show that consumers’ use intention is shaped by individualization, perceived usefulness and perceived ease of use. Cost was found not to be statistically significant. Neither was the composition of the household.